Ethiopia: Building Power, Prosperity and a New National Future
From hydro dams to gold mines, Ethiopia’s massive infrastructure drive is opening doors for global suppliers, fabricators and stainless steel specialists across Africa.
Ethiopia, officially the Federal Democratic Republic of Ethiopia, is fast becoming one of Africa’s most dynamic construction and industrial markets. With a population of almost 135 million, second only to Nigeria, the Horn of Africa nation is leveraging its vast human capital and natural resources to reshape its economy.
Known for a history that stretches back over 2 000 years, Ethiopia is now firmly focused on the future. Its government has embarked on a string of mega projects in energy, transport, mining and urban renewal, collectively valued at more than 30 billion US dollars. The goal is clear: to industrialise, modernise and secure self-sufficiency in energy and infrastructure.
Despite hurdles such as inflation, poverty and the lingering effects of a 2023 debt default, the country is pushing ahead with wide-ranging reforms backed by the IMF and World Bank. For investors, fabricators and material suppliers, Ethiopia represents both a challenge and an extraordinary opportunity.
Powering Progress: From Hydropower to Nuclear Ambition
In September 2025, Prime Minister Abiy Ahmed announced an ambitious new wave of projects, including the nation’s first nuclear power plant. The announcement came as Ethiopians celebrated the completion of the Grand Ethiopian Renaissance Dam (GERD), the largest hydroelectric dam in Africa, with a capacity of 6 450 megawatts.
Funded entirely by public contributions over 14 years, the GERD is a symbol of Ethiopian pride and self-reliance. Built using local materials wherever possible, it also created significant demand for structural and corrosion-resistant metals. For the stainless steel sector, such mega projects highlight a long-term opportunity in supplying durable materials for water handling systems, turbine housings, spillway gates and transmission infrastructure.
“The GERD was our generation’s proving ground,” said Prime Minister Abiy. “Now, we must look forward – to build, to innovate and to power our prosperity.”
Ethiopia’s planned nuclear plant, said to rival the GERD in scale, represents a major step in diversifying the country’s energy sources. Stainless steel and specialist alloys are expected to play a critical role in reactor construction, piping and containment systems; areas where high corrosion resistance and performance under pressure are essential.
Hydropower and Wind: Expanding the Green Grid
Beyond the GERD, Ethiopia’s renewable energy expansion continues at pace. The Koisha Hydropower Project, now 70 per cent complete, will generate 1 800 MW and produce more than 6 400 GWh of electricity annually when finished. Its 201 metre high dam structure is one of the largest civil engineering undertakings in the nation’s history.
Similarly, the Aysha II Wind Farm is nearing completion. Valued at 257-Million US dollars, it adds 120 MW to Ethiopia’s grid, with the first 80 MW already online. Despite financing delays, Ethiopian Electric Power has pressed ahead, sourcing turbines, towers and mechanical components that rely heavily on stainless steel for longevity and minimal maintenance.
These initiatives form part of a ten year, 40-Billion US dollar renewable energy plan encompassing 71 projects. The aim is to double generation capacity and export clean electricity across East Africa, a vision that offers vast scope for industrial materials and fabrication expertise.
Mining and Manufacturing Momentum
While power generation dominates headlines, Ethiopia’s mining sector is gaining equal traction. The Tulu Kapi Gold Project has secured 240-Million US dollars in financing from the Africa Finance Corporation and the Trade and Development Bank. Once operational in 2027, it will produce around 164 000 ounces of gold per year.
Mining infrastructure, from processing plants to pipelines, depends on high-performance materials capable of withstanding abrasion and corrosion, a strong fit for stainless steel fabricators. The same applies to the Kurmuk Gold Project, due to start production in 2026 with a capacity of 200 000 ounces annually.
Downstream, these developments will also support local manufacturing. Ethiopia’s industrial parks, such as those in Hawassa and Dire Dawa, are expanding their focus from textiles to light engineering and metal fabrication, signalling a future demand for stainless steel in machinery, food processing, and construction applications.
Transport and Trade: Linking Landlocked Ethiopia to the World
Connectivity remains central to Ethiopia’s growth. The Addis Ababa–Djibouti Railway, stretching 759 kilometres to the Red Sea port, handles more than 95 per cent of Ethiopia’s import and export trade. Upgrades to this electrified route are underway, supported by a 1.72-Billion US dollar World Bank loan that also covers electricity expansion, water infrastructure and rural road improvement.
Ethiopia’s air transport sector is similarly ambitious. The government has announced plans for a new international airport capable of handling 60 million passengers a year making it Africa’s largest aviation hub. Such infrastructure offers potential for stainless steel use across terminals, catering facilities, air-handling systems and structural design, reflecting a growing appetite for durable, low-maintenance materials.
Urban Transformation: Addis Ababa Reinvented
Addis Ababa is undergoing a visible transformation under Mayor Adanech Abebe. Redevelopment projects include new housing, green spaces, pedestrian walkways and modern infrastructure designed to attract foreign investment.
However, the process has drawn criticism over the relocation of informal settlements, raising questions about inclusivity. Fortunately, for the construction sector, the city’s shift towards green urban spaces opens a strong market for architectural stainless steel in façades, railings, street furniture and water systems.
The Materials Behind the Vision
Ethiopia’s transformation is creating ripple effects across Africa’s metals and manufacturing supply chains. Hydropower and wind farms require miles of stainless steel piping, turbine components and support structures. Mining and processing plants rely on corrosion-resistant steel for conveyors, tanks and chemical containment. Urban infrastructure demands high-grade alloys for hygiene, strength and longevity.
For stainless steel producers and fabricators, Ethiopia represents a long-term growth frontier. Local fabrication capacity remains limited, opening opportunities for regional partnerships, technology transfer and training. With sustained support from international financiers and multilateral institutions, the next decade could see Ethiopia emerge as one of the continent’s largest markets for industrial materials and engineering services.
Looking Ahead
Ethiopia’s GDP is expected to reach around 109-Billion US dollars in 2025, and its reform agenda is gathering momentum. However, challenges persist including inflation, foreign debt and regional tensions but the country’s infrastructure-led growth strategy remains strong.
For the stainless steel industry, this is a nation to watch. Its drive for renewable power, modern cities and industrial capacity is underpinned by materials that endure, and stainless steel is t the core of that future.