Prime Minister Abiy Ahmed (PhD) has announced the commencement of a major initiative to construct 1.5 million houses over the next six years in a concerted effort to address Ethiopia's severe housing shortage and high rental costs.

In a response and explanation to members of the House of Peoples' Representatives (HPR) on Tuesday, the Prime Minister acknowledged that while it may not be feasible to make every Ethiopian a homeowner, the government is committed to ensuring citizens have affordable rental options. He highlighted that high housing costs and a lack of available properties have made renting in Ethiopia, particularly in urban centers, extremely challenging.

The ambitious housing program, which requires a substantial government budget, involves laying the groundwork and infrastructure necessary for the 1.5 million units. Crucially, the government has focused on increasing the domestic production of essential construction materials needed for this massive undertaking.

The prime minister specified that efforts have been underway to expand local manufacturing firms capable of meeting the nation’s housing demand, including the start of new steel production initiatives in Ethiopia. Furthermore, cement factories are undergoing expansion. He also announced that a glass factory—a key input for construction that was previously not produced domestically—is set to be inaugurated this year, with private investors working to produce glass from raw material to market. Dr. Abiy added that extensive preparations have also been made in the local production of granite, marble, and furniture.

The Prime Minister concluded his remarks by stating that model homes reflecting these new production capabilities and construction plans will be built shortly.