ADDIS ABABA- Foreign companies are showing renewed interest in entering and expanding within Ethiopia’s construction sector, as the government continues to open up bidding opportunities across the country.
Despite ongoing challenges related to foreign currency shortages, several industry leaders at the Big 5 Construct Ethiopia exhibition told The Ethiopian Herald they see strong potential for trade and manufacturing partnerships in the market.
Red Star Company’s Executive Director of Sales and Marketing Syed Naved Naqvi said his firm is actively exploring opportunities to expand into Ethiopia. The company, which currently exports raw materials from the UAE to various countries, is aiming to establish a stronger presence in Africa through the Ethiopian market.
“We are planning to expand to Ethiopia as part of our strategy to grow in the African region,” Syed said. “We are doing back-to-back business from Dubai,” but Ethiopia has shown promising demand for construction inputs. His company needs local trader partners to supply their products here, according to him.
According to Syed, Ethiopia’s construction growth is driving increased demand for building materials. “We have assessed the market. The need for raw materials is huge, and most of the inputs are currently imported from China and other countries. Localizing supply can be mutually beneficial,” he added.
Similarly, Parget Makina’s Marketing Manager Amal Hdhili noted that Ethiopia has maintained an active construction market for over a decade and is now creating more space for international players.
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Parget already operates three factories in Ethiopia, said Amal. “We specialize in gypsum products, and Ethiopia has proven to be a key location both for domestic supply and for exports to neighboring countries lacking raw materials.”
She emphasized that Ethiopia’s natural resources, skilled workforce, and growing construction demand make it a strategic location for expansion. Parget’s local factories produce some of the highest-quality gypsum powder globally, she added.
However, both companies cited Ethiopia’s foreign currency shortage as a major obstacle for investors. “The biggest challenge we face as suppliers is the payment issue,” Amal explained. “Currency limitations often discourage investors and suppliers from staying long-term in the Ethiopian market.”
Despite this, she acknowledged some gradual improvements in the country’s foreign exchange system in recent years. “Compared to 10 years ago, and especially the last two or three years, the situation is improving.”
As Ethiopia continues to prioritize infrastructure and urban development, foreign companies are closely monitoring the evolving economic environment. Many see Ethiopia not only as a promising export market but also as a potential manufacturing hub for the region, as highlighted during the Big 5 Construct exhibition.
BY YESUF ENDRIS
THE ETHIOPIAN HERALD TUESDAY 1 JULY 2025
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
