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Addis Ababa, June 16, 2025 — The Addis Ababa City Administration Cabinet has approved a landmark 350 billion birr (approx. $6 billion USD) draft budget for the 2018 Ethiopian fiscal year (2025/26), marking the city’s largest budget allocation to date. The proposal will now be submitted to the City Council for final approval.
The decision was made during the Cabinet’s 12th regular meeting of the fourth year, where two critical citywide agenda items were discussed in depth. The proposed budget prioritizes infrastructure development, poverty reduction, and sustainable economic growth.
Out of the total proposed amount, 249.9 billion birr is earmarked for capital expenditures. These funds will support:
- Large-scale infrastructure and development projects
- Anti-poverty initiatives
- Job creation programs
- Basic service delivery improvements
- Foundational works for long-term urban transformation
The remaining 100.1 billion birr is allocated for recurrent expenditures, such as salaries, maintenance, and essential operational costs. Officials emphasized that this portion of the budget was developed with a strong emphasis on fiscal discipline, efficiency, and strategic savings.
In addition to the budget, the Cabinet also passed a resolution concerning current lease prices for urban land, following a presentation by the city’s Land Development and Management Bureau. The move aims to better reflect rising development demands in rapidly growing areas and adjust for inflationary pressures on land value.
Specifically, in high-potential development corridors like Lemu and surrounding zones, revised lease prices will now better align with ongoing and future urban expansion plans. According to the City’s Communication Bureau, this revision reflects both the appreciation of land value and Addis Ababa’s evolving urban landscape.
The proposed budget underscores the city’s ambition to transform itself into a resilient, inclusive, and globally competitive metropolis. The City Council is expected to deliberate and vote on the budget proposal in the coming weeks.
