Several grade one contractors are declaring loss after failing to deliver their pending projects, leaving clients disappointed.
Teklebirhan Ambaye Construction (TACON), a grade one contractor with over 5,000 employees, is among the contractors on the verge of collapse.
While its major shareholder, Teklebirhan Ambaye, a renowned businessperson, has already left the country, his company has already stopped working on pending projects.
Another grade one contractor, Afro Tsion Construction is also in the midst of crisis. Dissatisfied by its performance, projects owners snatched projects from the construction firm.
Not only the two contractors, dozens of grade one construction companies are struggling to stay afloat and deliver projects. This has also impacted the banking industry.
Financial institutions, which have provided a guarantee for construction firms, are now facing large bills because of the failure of their clients to deliver projects based on their contracts.
The construction industry has been instrumental in helping Ethiopia achieve an economic trajectory for almost a decade. It contributes almost a fourth of the country’s GDP.
