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Ethiopia to spend $1.5 billion to improve transport network

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Ethiopia as splashed over $50 billion on its infrastructure since 1990 and seek to expand the transport network for increased trade activities.

 

Ethiopia Roads Authority (ERA) has announced plans to improve the state of its roads in a bid to improve transportation of goods and people. Close to 15,000km roads will be reviewed to assess their state and how they can be improved to make road transportation easier. The Government of Ethiopia has highlighted major changes on the transport network that will boost the ease of doing business in the country. These roads have been earmarked for rejuvenation.

More than 3,000km roads will be constructed to improve accessibility to the rural areas. Poor infrastructure has been a hindrance to the development and growth of remote areas leading to an imbalance progress in the nation. Many rural areas have been identified to offer promising markets for businesses but poor infrastructure such as poor road networks and electricity have stalled the plans of potential investors into such locations. The efforts by the Government should go a long way to revive the hope of entrepreneurs and investors into venturing in the new market.

One of the paramount factors to be considered by many East African countries in their new fiscal year was infrastructure development to bolster trade activities. Movement of goods from boarder to boarder have faced the challenge of poor transport networks that delay goods and service deliveries. Well maintained roads will ensure quality goods are delivered in perfect time to avoid delay in business. It will also limit traffic snarl up and congestion in major cities.

The road projects will be completed in four years and the estimated budget is $1.5 billion. As the economy is open to foreign investors, the need for such moves to catalyze businesses is necessary. This will strengthen the faith of investors as they look to access wider market with reliable transport network system. Ethiopia’s road network has been improving every year.

Source: The Exchange

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