Where will huge state investments lead Ethiopia?

Ethiopia plans to build 960,000 houses in the next 10 years, besides thousands of kilometres of roads and railways. Photo/Andualem Gessesse

From thousands of kilometres of railways and highways to mega dams to tens of thousands of partially government-sponsored houses to cobblestone roads, Ethiopia is a nation under-construction.

About a fifth of the 10.3 per cent growth registered in the 2013/14 budget year was attributable to construction activity, according to the World Bank. Over the same period, the total investment rate rose from 32.1 per cent of GDP to 40.3 per cent.