Ethiopia $7.5bn Short to Complete Mega Projects

“We are only good at starting projects but not completing on schedule” – PM Abiy

Ethiopian government needs $7.5 billion to complete ongoing mega infrastructure projects
Faced with a current account deficit of around $6 billion on top of lower export earnings and slower economic growth, PM Abiy said his government needs $7.5 billion to complete dam, road and rail projects.

BY ANDUALEM SISAY

Ethiopian Prime Minister Abiy Ahmed has said his government needs $7.5 billion to complete ongoing mega infrastructure projects.

He was speaking in Parliament after the tabling of the 346.9 billion Ethiopian birr ($12.8 billion) 2018/19 budget that was approved by MPs on Friday afternoon.

The prime minister said state-owned enterprises are heavily-indebted and had “put at risk the economy”.

The enterprises have failed to quickly operationalize their projects and were among the reasons the country is facing a dollar shortage, he said.

“We are only good in starting the projects but not completing on schedule,” he said.

The government will not undertake any new project in the next financial year that begins on July 8 as a result.

Since taking office in April, Dr. Abiy has introduced economic reforms such as liberalizing state companies and reducing the role of the military in the economy.

He said the government must be more efficient and exercise prudent spending.