Challenges in developing the Ethiopian construction industry

To ensure continual improvement in the construction industry’s performance, its challenges must be identified so that integrated solutions that suit the context can be provided. The Ethiopian construction industry, like that in most developing countries, faces challenges that impede its development. This paper assesses four categories of challenges facing the industry, based on their sources: variables emanating from role of government, resource related variables, those related to the nature of the industry and variables emanating from the vision of the industry itself for its own development. Data for the study were collected through a questionnaire survey. Professionals from different background, such as contractors, consultants, clients, regulatory authority and academics were engaged in the survey. Mean score was used to identify the perceived impact level of the variables. Significant variables were identified and factor analysis was conducted to identify the underlying dimensions of the different sources. The major challenges are identified as: (i) delay in construction industry development (CID) policy implementation and corruption; (ii) weak capacity of contractors and consultants; (iii) lack of collaboration and professionalism; and (iv) lack of benchmarking CID practice from role of government, resource related variables, nature of the industry and industry’s vision for its own development, respectively. Findings provide information that stakeholders can use to make informed decisions and critical interventions for the effective development of the industry.