Addis Ababa, July 3, 2025 (FMC) — Ethiopia’s service sector is on track to register 8.1 percent growth this year, fueled by robust activity in tourism, transport, telecommunications, and public infrastructure development, Prime Minister Abiy Ahmed (PhD) told lawmakers.
Responding to questions at the 42nd regular session of the House of People’s Representatives, the Prime Minister said the sector’s contribution to national growth continues to strengthen, supported by integrated reforms and landmark achievements in urban development and public services.
Over 1.3 million foreign tourists visited Ethiopia this fiscal year, drawn by improved airport and immigration systems, Ethiopian Airlines’ global reach, and newly revitalized urban landmarks. In the capital alone, Unity Park, Friendship Park, the Science Museum, and the National Palace welcomed 1.5 million visitors, generating over half a billion birr in revenue.
Ethiopian Airlines remains a cornerstone of this momentum. With the purchase of 13 new aircraft, the airline has increased its fleet to 180 and expanded its network to 136 destinations, transporting over 19 million passengers domestically and internationally this year.
The Prime Minister also highlighted the transformation of the railway sector. Once financially strained, the Ethiopian Railway Corporation is now supporting the economy through increased freight capacity. It plays a growing role in the export of coffee and livestock, enhancing Ethiopia’s connectivity and trade efficiency.
Urban development efforts have complemented the service sector’s growth. Through extensive corridor development in Addis Ababa, Gondar, Bahir Dar, Bishoftu, and Jimma, long-standing waste and pollution have been cleared, creating cleaner, more liveable environments. By the end of August, over 20,000 new public projects—including roads, schools, health centers, and parks—will be inaugurated nationwide.
Housing is another pillar of the service sector’s contribution. Approximately 1 million homes have been built over the past five years, and more than 265,000 are currently under construction. Over 100,000 homes have been renovated through seasonal public campaigns. Rural corridor housing initiatives are also expanding access beyond urban areas.
The Prime Minister underlined that these efforts reflect the government’s commitment to transforming the service sector into a sustainable engine of economic growth. With tourism, transportation, urban revitalization, and housing all contributing meaningfully, the sector is playing a decisive role in supporting Ethiopia’s broader economic goals, including the national 8.4 percent growth target for the year.