Electricity Supply

Ethiopia  has enormous  potential for hydropower and  geothermal energy generation. Several studies  have  so far  been carried  out  to identify Ethiopia's energy  potential and  to develop short, medium and  long-term investment plans for the power sector.
The country's hydropower potential is estimated at 45,000 MW and  the potential for generating electricity from geothermal is about 5,000 MW.

The country  is also endowed with enormous  potentials of other renewable energy sources like solar and  wind, particularly in rural areas. Despite such huge  resources, only about 25 percent of the population has access  to electricity. Since the formulation of the last comprehensive power system expansion  master plan, the fundamental and unprecedented structural  change that  have  taken  place in the economy are now finding  their driving  force in the power  sector.

Ethiopia has around 1,562.2 MW of installed power  generating capacity, out  of which  1,382.6 MW is generated from hydropower plants. The remaining 179.6 MW comes  from diesel and  thermal power plants.  Presently, two  huge  hydropower plants with genera ting capacity of over 2000 MW are also under construction.


The Ethio Telecom,which is state owned,is the sole telecom service provider in the country. The Corpora tion  provides national and  international telecommunication services using Satellite, Mirco-wave Digital Radio Multi Access System (DRMAS),  VSAT, UHF, VHF, long Line and HF Radio.

The number of fixed and  mobile telephone subscribers increased by 40 percent and 62 percent, respec tively,in the last few years. At present, the provision of SIM cards  has been  leased  to private businesses in order  to  ease  accessibility for subscribers.  All regional cities  and  towns  are  connected by  direct microwave links, and  have  automatic telephone and  cellular  phone services. International links  are  maintained  via  satellite  earth   stations  and   fiber   optics,   providing telephone,  telex,  fax,   internet,  television,  digital  data  transmission, pre-and post-paid cellular phones  and coin box services.

Furthermore, the corporation is currently engaged in a major transformation work including utilization of a wireless technology to benefit all rural kebeles (small and lowest administrative units); improvement of public phone services in both  urban and  rural areas; and  establishment of a swift and  reliable customer  care  and billing center as well as a national network  operation centre.

Water Supply

Ethiopia has huge surface and ground water potential. However. it utilizes a small portion of these resources.  Access to safe potable water in urban  areas was 86.2 percent in 2007/08. Access to safe potable water  in rural areas  was about 53.9 percent in the  same  year. The overall national average of access  to potable water  supply was to 59.5 percent.

A huge  project deemed to  satisfy safe  water  demand in  the  towns  and  rural areas  was launched by  the country's first five year  development plan and presently it is in final year of implementation.

Road Transport

Road plays a vital role in transporting people and goods in Ethiopia. Cognizant of its cardinal role, the Government has identified the road sector as top priority for public investment  and remarkable progress has been made in the expansion of the road network in the country.

Addis Ababa,the capital city,is an impor tant regional and international transport hub.  The road network  radiates from  Addis  Ababa to  regions  linking  it  with important cities. towns. and  other  economically active centers  of  the country. International highways  also link Addis  Ababa and  other  cities  and  towns  with neighboring countries such as Kenya, Djibouti, Eritrea. Somalia and the Sudan.

In 2007/08. the  total  road network. excluding community roads. had  reached 27.563  miles, out  of  which  46 percent are  track roads  and  the  remaining  54 percent are rural roads with annual growth rate  of 5 percent.

Based on the  classification of  the road network. about 12.694 miles are in the Federal  network. asphalt   road  constituted 30  percent  and   gravel road    70 percent.All-weather rural road grew by 7 percent per annum  constituting 1 4.869 miles of the  total road network  in 2007/08. In the same year. the community road. non­ engineered road, was 43,520 miles.

Air Transport

Air transport is an important part  of Ethiopia's transport network. Ethiopian Airline, Africa's  World Class Airline, which  has gained a very  good reputation internationally in  its 66 years  of  active services, provides   both  domestic   and international air transport services. It has an outstanding safety records  and is one of the few profitable African airlines.

Ethiopian services include both passenger and cargo transport in its international flights and domestic  routes. It also provides  training and maintenance services to more  than  a  dozen  other  African  and  Middle Eastern airlines. Domestic  flight services are provided through  13 destinations  across the country.

Ethiopian links the country  with over 50 destinations  worldwide including Brussels, Frankfurt, London,  Paris, Rome, Stockholm,  Washington  DC. Bahrain, Bangkok, Beijing, Beirut, Dubai,  Guangzhou, Hong Kong, Jeddah, Kuwait, Mumbai, Delhi, Riyadh, Sana'a, Tel Aviv , Johannesburg, Nairobi,  Lagos, Lusaka, Accra, Dakar and many more big cities in Africa. It is also expanding its international services.

Regarding Ethiopian cargo services, it covers over 40 cargo destinations  such as Dubai, Jeddah and Luxembourg. Other cities including Johannesburg, Khartoum, Kinshasa,Hong Kong, and Mumbai are destinations  of Ethiopian cargo services as well. In addition to  Ethiopian,  other  airlines have  flight  schedules  from and  to  Addis Ababa and  these include such airlines as Emirates, KLM, Lufthansa, Kenyan and others.

The passenger  terminal at Bole International Airport in Addis Ababa has new and modern facilities  providing efficient services to passengers. Ultra-modern cargo terminal  catering to  fresh  products  and   a  maintenance hangar have   also become operational since 2006. This new and modern terminal has the capacity to  handle 350,000 tons of cargo per  annum. Anticipating the  future  growth of perishable cargo, Ethiopian  has proactively launched an  expansion  project to construct a  new  perishable cargo terminal  that  will be  operational within  the foreseeable future.

The Ethiopian Government has taken the policy initiatives for the development of the aviation sector in the country.  The most significant  initiative undertaken by the government is the opening up of air cargo service to foreign investors without any capacity limit and allowing Ethiopian nationals to provide chartered services using aircrafts  with a seating capacity of up to 20 passengers.

Sea Port

In  order   to  ensure  efficient, cost  effective  and   reliable import   and   export movement of  cargo to  and  from  the  sea ports  of  neighboring  countries,  the government has established  the Dry Port Service Enterprise. The Enterprise is currently operating two  dry ports which  are located at Modjo, in the  Oromiya Regional State, and  at Semera, in A far Reigional State.

Addis Ababa, the capital city, is linked by railway and road to the port of Djibouti, at the Gulf of  Aden.  The railway stretches  over  780 km. The port  of Barbara  in Somaliland and Port Sudan are other  external trade  routes that  provide services for  export-import trades  of  the  country. Another  potential port  accessible  to Ethiopia is Mombassa in Kenya.