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Utilities & Infrastructure

1 Electricity

Ethiopia obtains its electricity from two sources - hydroelectric power plants and thermal power stations. The former, with an aggregate power generation capacity of 350 MW, is by far the largest source. All hydroelectric power plants are connected to the national grid, which covers all major cities and towns.

The supply system is being expanded through the construction of additional power plants at four sites, two of which, with an aggregate capacity of 250 MW, are at an advanced stage. Ethiopia's hydropower potential is estimated at 30,000 MW, of which currently only about 1% is utilised. On average, power costs are $0.07 per kWh.

2 Water

All major cities and towns have municipal water supply systems, and underground water is abundantly available in most parts of the country.


3 Roads

Ethiopia's road transport infrastructure is relatively at a lower stage, but the improvement of the country's road network has been identified by the government as a core component of the economic reform programme. More than 20% of the government's total capital budget in 1998 was allocated to road construction and repairs. US$3.9 billion has been earmarked by the government to expand the road network by 80% over a period of 10 years. International highways link Addis Ababa to the neighbouring countries of Djibouti, Eritrea and Kenya.

4 Rail and Ports

A limited rail service stretching 780 km links Addis Ababa with the port of Djibouti via the eastern Ethiopian city of Dire Dawa. Currently, Ethiopia uses Djibouti for its import-export trade. The shift from Asab in Eritrea to Djibouti appears to have occurred smoothly, without negative effect on Ethiopia's trade. Other ports in the region include Berbera, Port Sudan and Mombassa.

5 Air

Aviation is an important means of transport in Ethiopia, with 18 domestic and 3 international airports. Addis Ababa has developed as an important aviation hub serving North America, Europe, the Far East, Africa and the Middle East. Ethiopian Airlines flies to over 40 destinations in Africa, Europe, North America, Asia and the Far East, with about 50 weekly outbound flights from Addis Ababa.

6 Telecommunications

Telecommunication services, including telephone, telex, facsimile, internet and data communication, are currently provided by the state-owned Ethiopian Telecommunications Corporation.

Direct microwave links are available to all major cites and towns in the country. International communication links are maintained via satellite. Microwave links exist with Eritrea, Kenya and Djibouti. Presently, about 200,000 direct exchange lines are served. This number is expected to increase dramatically to over 750,000 lines in two years' time. A mobile system has been introduced recently in Addis Ababa.

Local calls are among the cheapest in Africa and, although Ethiopia has a low density of lines per head of population, Addis Ababa and other major towns are reasonably well served by regional standards.