The construction industry has awakened after a two-year slumber, with a flurry of new building projects in the country’s capital over the past six months. The authority that is responsible for providing approvals to developers is being inundated with an increasing number of permit requests.
The number of companies that have obtained a construction permit in order to begin building projects has been reported to be on the rise by the city administration. It is much higher than the previous year’s number. the Construction Permit and Control Authority issued 8,214 building permits in all 11 sub-cities previous fiscal year.
According to those with knowledge of the situation, this supposedly demonstrates that the construction industry, which is the sector that contributes the biggest portion to the economy, is on the road to recovery. However, this comes as a surprise considering the growing cost of construction inputs such as rebar and cement, a circumstance that has led to an increase in the cost of building as a consequence. Cement costs around 1,500 birr per quintal at the moment, which is more than double what it was only two years ago. The market for rebar has undergone growth that is analogous to this trend.
According to Dawit Hundesa, an engineer and deputy director of the Building Permit and Control Authority, one of the reasons for the growth is the lifting of a ban on the issuance of construction permits since August 2022. “To handle a surge in number of permit requests, we have digitized our system and avoid bureaucratic hurdles,” said Dawit. The Authority generated 71 million birr from the service it provided.
Permits may be obtained from the Authority in the following categories: architectural, structural, sanitary, and electrical. Applicants were once required to hand in a total of 12 different papers before their applications could be reviewed. However, applicants may now get the permission online and just have to visit the Authority in order to pick up a scanned copy of the application.
