The Ethiopian Railways Corporation (ERC) is finalizing a comprehensive investment strategy partnering with private and foreign investors for real estate and infrastructure projects. This represents a shift to a more commercial and partnership-driven model. The flagship project involves redeveloping its headquarters on the Lagar site in Addis Ababa.
The Ethiopian Railways Corporation (ERC), a state-owned entity primarily tasked with national railway development, is in the final stages of approving a new comprehensive investment strategy. This framework will advance future projects via Public-Private Partnerships (PPPs), joint ventures, and other collaborative models, involving private and foreign investors to fund real estate and infrastructure initiatives.
“This marks a strategic pivot for the corporation towards a more business-oriented and partnership-driven approach,” a source familiar with the strategy stated.
The flagship project is the redevelopment of the ERC’s existing headquarters on the prime Lagar site in central Addis Ababa. The plan encompasses a new 35-story corporate headquarters, a 21-story hotel, and twenty-seven residential towers—eight at 36 stories and nineteen at 25 stories. It will also include five retail centers, comprising four three-story and one four-story complexes.
The investment portfolio extends to strategic logistics hubs beyond the capital. Developments include a logistics port at Indode, a small-scale port city at Mojo, and port logistics infrastructure at the Dire Dawa Melkajebdu station.
These initiatives will complement the ERC’s core railway operations. The corporation is advancing the 392-kilometer Awash-Hara Gebeya railway project, which was delayed by the conflict in northern Ethiopia. Other efforts include a 3.2 km rail line at the Sof Umar Tourist Lodge and a strategic link from the Awash Oil Depot to the main Addis-Djibouti railway.
In a related move, the ERC has been designated as a multimodal transport operator, aligning with its focus on integrated logistics and infrastructure.