Infrastructure power trading. According to World Bank Group,

Infrastructure is essential for a country to function at its best. Ethiopia is missing infrastructure such as roads, water systems sewage, flood control, drinking water supply, etc), dams, electrical power network and others.Increasing Ethiopia’s infrastructure financial assets to that of the region’s middle-income countries could accumulate 3% additional points to subsidize infrastructure’s growth. According to World Bank Group, There has been success in its infrastructure due to developing “Ethiopian Airlines, a leading regional carrier; upgrading its network of trunk roads; and rapidly expanding access to water and sanitation”. Ethiopia’s biggest challenge infrastructure is its power sector, along with transportation faces complications with the low levels of rural accessibility and inadequate road maintenance. Roads are important because they are needed for transportation of materials such as imports and exports. According to, “In the world, Ethiopia is known to be the country that has the lowest road density with only 13.3 percent of all roads paved.”. With a lack of paved roads it is going to be difficult to transports goods and even services that are needed which affects the economy. Information and communications technology suffers from indigent institutional and regulatory structure. About 90 percent of the electricity in Ethiopia is acquired from hydropower, which is provided by the parastatal Ethiopian Electric Power Corporation. To improve the lack of good infrastructure in Ethiopia an annual expenditure of 5.1 billion dollars would be needed over the next decade, to reach these improvements in Ethiopia’s infrastructure. The power sector by itself requires $3.3 billion each year along with $1 billion to facilitate regional power trading.  According to World Bank Group, “that level of spending represents 40 percent of the country’s GDP and a tripling of the $1.3 billion spent annually in the mid-2000s. As of 2006, there was an annual funding gap of $3.5 billion.”. The gap could be shrunk by improving road maintenance, removing inefficiencies in power, and by making ICT services private. In order to help Ethiopia’s infrastructure and economy there needs to be a increase in their funding along with careful handling of public and private investments to reach the full potential in a reasonable time.       


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