Ethiopia's construction industry and infrastructure development includes transport infrastructure, road construction, railway and energy projects, real estate and industrial parks. Small and medium construction companies operate in the informal market and local and foreign companies operate in the formal market. The involvement of foreign companies is dominated by Chinese companies which are undertaking large projects. The construction market in Ethiopia is projected to grow at an annual average growth rate of more than 8% to 2026. The country's 10-year development plan includes infrastructure development and the objective of public-private partnerships.
Cognizant of the crucial role of the construction in the nation economic growth and to maximize its encouraging activities, the Ministry of Urban Development and Infrastructure made discussion recently with the pertinent stake holders on the newly introduced law. On the occasion, the State Minister of Urban Development and Infrastructure Wondimu Sita said that, the new policy of the sector is prepared by celebrated professionals who have long experience. They identified the sector's main problems which have to be resolved. As to him, the sector must be competitive and sustainable so that it can play vital role on the expansion of infrastructure.
It is proved that currently the sector has become the major job creator for the unemployed in the urban centers. However, similar to other sectors it faced various challenges and among others, shortage of hard currency for the importation of inputs, the exacerbating unethical practices in the sector, the discrepancy between the complex nature of the construction and the incompetent contractors, the unsafe construction practice risking workers health, delay of project accomplishment and additional cost incurred on the projects, shortage of inputs obtained from local market such as cement and others and shortage of finishing materials imported from abroad.
According to Wondimu, until 2014 there was no construction policy but for the last 10 years the newly introduced policy has been implemented. More than 150 thousand professionals join the sector annually.
More than thousands consultants have also joined the sector. The sector has played pivotal role in expanding infrastructure such as water, health, telecom and others. To support the sector, the construction management institute is established and hundreds of professionals graduate and join the labor market annually.
About 16 iron and steel mills are established and supply their products to the market and in such venture it has been possible to substitute the imported iron to some extent.
The new draft law considers that exerting coordinated efforts for the betterment of the sector by contractors, consultants and owners of the project is vital and emphasis is given to such venture.
In addition, it is underlined that workers' associations and managements should work in the collaborative manner without compromising the construction industry peace. It also emphasizes the vitality of inspection of the construction inputs quality both produced locally and abroad.
According to Wondimu, due to the rampant corruption, malpractice, shortage of hard currency, delay of payment from the owners of the project, shortage of inputs and other inhibiting factors most professionals leave the sector and engage in other businesses and it is proved that the span on average professionals stay in the sector is only 10 years. To reverse such desperate situation, the Ministry has introduced the 30 years road map that enables to tackle the deep rooted and complicated problems of the sector and to make it competent in the local as well as in the regional market. The new policy intends to hold 25% of the regional markets.
He further said that, the sector is heavily dependent on imported materials because numerous inputs are imported from abroad hence, to substitute imports, the policy underlined to exert efforts. The new policy has main objectives and among others, it strives for the establishment of competent institutions in the sector, improving the financial system and inputs, enhancing the sector competency and strengthening partnership.
The policy also considers the vitality of social inclusiveness by constructing buildings conducive to physically disabled and women. It also emphasizes the essentiality of the influx of well qualified professionals to the sector.
As to Wondimu, evidence shows that there is skill gap between what the sector labor demand and freshly graduate engineers and architects who joined the sector hence, to narrow the gap emphasis will be given for provision of capacity building. The development of the sector should rely on the well qualified human resources. The sector still utilizes an outdated technology. therefore, coming across with cutting age technology should be a priority agenda.
Substituting foreign professionals by the local ones is out of site and needs steady efforts. The procuring system is not conducive for consultants, contractors and project owners and unless the problem is resolved attaining the sector development is impossible. The local construction works have poor quality and the capacity for quality control is still not mature. Therefore, rigorous efforts are needed to address the problem through improving the payment system by introducing an obligatory mandate to the executive institutions.
The issuance of license is characterized by non-transparent and mischievous process which calls for the assignment of professionals with strong sense of integrity to tackle the problem. 25% of the construction works make workers vulnerable to physical risk and it also contributes to environment pollution. Therefore, to reduce the unwanted outcome conducting the working activities cautiously is essential. It is proved that, women participation in the construction sector is insignificant and in some companies their wage is 50% below the men and adjusting the unjust practice is vital.
Medina Mohamed is an executive officer in the Department of Construction Infrastructure Development. As to her, the new draft proclamation has two rules and four regulations which help to make the sector competent and create better level playing field to professionals who join the sector. For long the sector has been vulnerable to malpractice and corruption and mitigating the problem needs unreserved efforts.
As to her, there are chronic problems that thrived for decades that include lack of quality inputs, ensuring accountability, duplication of efforts, wastage of resources, fragmented laws and regulations, lack of safety in the working places. Hence, providing immediate solutions to the problems is vital.
Huge investment is poured on the sector but most works do not conduct based on the cost benefit analysis which left the sector to be inefficient.
The newly prepared draft law expected to support the sector to function its day to day work based on ensuring quality construction, to inspect the activities of the stake holders, to be competent at the international level, to add value on the construction works, create markets derived by competition, enhance the role of stake holders, to implement periodical evaluation of contractors, to remove people allegedly joined the sector with no valid certificates, to reduce the possible physical risk during the construction. In addition, it helps to make standardize construction works, to deter theft and malpractice, to realize knowledge and technology transfer, simplified the designing and construction supervision, to make formal contract among owners, contractors and consultants to avoid possible disputes, ensuring weather the construction laws and regulations enforced or not. It also supports regions construction institutions to supervise construction works.
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Engineer Dawit Mehari is the Construction Management Institute Vice Director and as to him, the construction sector has not reached the level that it was expected to and to change the situation to the better level the new draft law is prepared. The draft law utilized various stake holders' ideas raised on discussions conducted in various occasions and clearly defines the role of each stake holders' duties and rights and if the law is endorsed by the pertinent institution, it paves the way for alleviating the decades long problems of the sector.
As to him, it is not possible to address the deep rooted problems of the sector that prevailed for decades by one institution. Therefore, all stake holders must play their part in dealing with the shortcomings of the sector.
Emphasizing the roles of stakeholders in information exchange and mutual cooperation Dawit said that, the sector utilizes various materials imported from abroad as inputs by allocating hard currency obtained from the nation's meager resource but sometimes the imported materials found to be below standard. Hence, to keep the quality of the materials the Ethiopian Standard Evaluating Institute has the major responsibility to supervise the materials standards. However, after inspecting the standard it tends to conceal the results rather than making it accessible to stakeholders so as to ensure transparency in the process. Such kinds of practices have their own demerits on the sector working activities. Hence, it has to discharge its duty to make the information accessible to the stake holders.
