Addis Abeba rewrites rules for public projects

Addis Abeba's city cabinet has ratified a sweeping new regulation to impose order on the capital's chaotic construction sector. Officials hail it as a vital move for transparency, accountability, and efficiency amid fast-expanding public projects. Yet industry stakeholders caution that its rigidity may worsen delays, burden smaller firms, and dampen investment in a volatile field.

A new rulebook ratified by Addis Abeba's city cabinet is sending shockwaves through the capital's construction industry. This sweeping regulation seeks to restore order to a chaotic sector amid the rapid expansion of public projects, incorporating measures for transparency, accountability, and efficiency.

City officials present the initiative as an essential advancement. Industry players, however, voice concerns that the regulation's stringent provisions could intensify ongoing delays, disproportionately impact smaller firms, and discourage investment in an already unpredictable market.

The development was reported by Nahom Ayele, Fortune staff writer, on December 27, 2025.

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Photorealistic scene of Addis Ababa council meeting with mayor presenting budget approval and unanimous vote.
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Addis Ababa council approves appointments and 9.94 billion birr budget

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The Addis Ababa City Council on 30 Miyazia 2018 approved appointments presented by Mayor Adanech Abiebe and an additional budget of 9.94 billion birr in a unanimous vote during its regular session.

Addis Ababa city administration institutions are strong and system-run with continuity, officials said. Adanech Abiebie, head of the city administration, stated this. Reforms are enhancing residents' satisfaction.

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Addis Ababa Mayor Adanech Abiebe and Deputy Prime Minister Temesgen Tiruneh attended the launch of a book documenting the city's transformation.

Addis Ababa city administration has implemented 96 percent of its planned activities in the current budget year. The achievement comes from a nine-month performance review, according to Mayor Adanech Abebe's office. Officials plan to address remaining gaps in the coming months.

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Deputy Prime Minister Temesgen Tiruneh stated at the launch of Ethiopia's Basic Infrastructure and Construction Week in Addis Ababa that ongoing national projects serve as reliable foundations for sustainable development. He emphasized the leadership principle of creativity, speed, and quality as key to Ethiopia's transformation. The event aligns with efforts toward national development visions.

Ethiopia's Council of Ministers, in its 53rd regular session held in Addis Ababa, has approved decisions on various matters. These include the establishment of an Artificial Intelligence University, tax incentives for investors, and several loan agreements. The approvals aim to support education, economic growth, and infrastructure development.

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South Africa's Competition Commission has initiated a regulatory review project to identify rules hindering economic growth. The initiative targets barriers to competition, particularly for SMEs, with submissions due by 5 June 2026. Principal economist Yongama Njisane emphasises the need for smarter regulation to boost investment and jobs.

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