Economic Growth Behind Ethiopia’s Rapid Urbanization

Photo: Ethiopian Herald

Construction in Addis Ababa.

ADDIS ABABA- Ethiopia is among the leading countries in terms of urbanization with an annual growth of 5.3 percent, which the Ministry of Urban Development and Housing attributes to the rapid economic growth of the past decade.

Tiumezghy Berhe, Urban Good Governance and Capacity Building Head at the Ministry told The Ethiopian Herald that the economic growth is the main factor for the fastest urbanization in the history of the nation.

“The country is transforming its economy from agriculture to industry led, which necessitated the migration of surplus labor from the agriculture sector to urban areas. Each year, about one million people migrate to urban areas. This is changing rural towns into cities and expanding the already existing cities,” the Head added.

Tiumezghy also noted that Industrial Parks, built in all direction of the nation, would further intensify the rate of urbanization.

Explaining the how, the head extends: “Mostly Industrial Parks are built within near distance from capital cities of states. Hence, they would attract the surrounding communities to the cities by creating thousands of jobs.”

According to Central Statistics Agency, the current urbanization status of the country is among the lowest with, only 18-23 percent of its almost 100 million people living in urban areas.

This figure is even less than the sub-saharan average.

It was also learnt that with this growth rate, the urban residents throughout the country would reach 30 percent by 2028.