Urbanization Growth in Ethiopia from 1990 to 2023

Ethiopia’s urbanization journey from 1990 to 2023 saw a rise from 12.6% to 23.2%, highlighting a slower yet notable trend compared to other African nations. Ethiopia started with a predominantly rural population, and urban growth remained gradual throughout the 1990s, with yearly increases under 1%. The limited urbanization rate during this period was due to Ethiopia’s agrarian-based economy and lower urban employment opportunities. However, in the 2000s, Ethiopia’s urbanization picked up as Addis Ababa and other cities experienced rapid industrialization, largely due to government-led initiatives to promote manufacturing and attract foreign direct investment. Infrastructure developments, particularly in transportation, energy, and housing, supported urban growth. By 2023, while still below the urbanization rates of some African peers, Ethiopia’s urban population had nearly doubled since 1990, with urban centers now playing a crucial role in the country’s economic development, as the government continues to foster urbanization through large-scale projects.