Ethiopia Unveils $30 Billion Infrastructure Push, Including Nuclear Plant











Addis Ababa — Ethiopia is preparing to launch six large-scale infrastructure projects worth an estimated $30 billion, Prime Minister Abiy Ahmed said in a national address, underscoring the government’s push to expand energy production, refine oil domestically, and address urban housing shortages.

The initiative includes a nuclear power plant, an oil refinery, a natural gas facility, an airport expansion program, and the construction of 1.5 million housing units over the next six years. Abiy described the program as “the first day of Ethiopia’s recovery,” signaling his administration’s intent to accelerate economic development after years of political instability and fiscal strain.

Nuclear Power Plans

The centerpiece of the announcement is a nuclear power plant that the prime minister said would be used strictly for peaceful purposes. Ethiopia has recently engaged with the International Atomic Energy Agency, but no technical or financial details were disclosed.

A nuclear project would represent a significant shift in Ethiopia’s energy portfolio, which is currently dominated by hydropower. The country is heavily reliant on the Grand Ethiopian Renaissance Dam (GERD), Africa’s largest hydroelectric facility, making its grid vulnerable to rainfall variability. Nuclear capacity would provide diversification, though costs, technology transfer, and regulatory hurdles remain uncertain.

Refinery and Gas Development

Abiy also said construction on a long-discussed oil refinery would begin within weeks. Ethiopia currently imports all refined petroleum products, a key driver of foreign currency outflows. A domestic refinery could reduce import dependence and stabilize fuel supplies, though sourcing crude oil remains a challenge given Ethiopia’s limited proven reserves.

In parallel, the government intends to advance a gas processing plant, likely tied to the Ogaden Basin’s underdeveloped reserves. Previous efforts to commercialize natural gas in the region have faced infrastructure gaps and security risks, but Addis Ababa sees potential for future exports through neighboring Djibouti.

Airport Expansion and Housing Push

The program also includes aviation infrastructure. Ethiopia’s flag carrier, Ethiopian Airlines, has outgrown the capacity of Addis Ababa’s Bole International Airport. Expansion work would align with the government’s earlier proposal for a new mega-airport outside the capital, designed to handle as many as 100 million passengers annually.

Urban housing is another focus, with Abiy pledging 1.5 million new homes over six years. Ethiopia faces a severe urban housing deficit, particularly in Addis Ababa, where demand for state-subsidized apartments far exceeds supply. Large-scale construction could ease social pressure but would require sustained financing and a reliable supply of construction materials.

Financing Challenges

At a combined cost of $30 billion, the projects represent almost a quarter of Ethiopia’s GDP. The government has not disclosed how it plans to finance the program. Analysts expect a mix of external borrowing, public–private partnerships, and possible diaspora financing, modeled after bond sales used to support the GERD.

Ethiopia’s fiscal position remains strained. The country is in talks with the International Monetary Fund over a new program, and faces acute foreign exchange shortages and high debt servicing costs. Securing financing for multiple capital-intensive projects at once could prove difficult.

Strategic Implications

The announcement comes as Ethiopia seeks to stabilize its economy and reassert its regional influence after years of internal conflict. A nuclear power plant would be a first for the Horn of Africa and could elevate Ethiopia’s standing in global energy diplomacy, though it may also draw scrutiny from neighboring states and international partners.

For Abiy’s government, the projects serve a dual purpose: positioning Ethiopia for long-term economic growth while also signaling confidence in recovery despite current headwinds. Whether the plans materialize will depend heavily on financing, political consensus, and execution capacity.