The Ethiopia Urban Institutional and Infrastructure Development Program (UIIDP), supported by the World Bank, has created over 1.15 million jobs while improving infrastructure and living conditions in 117 cities, benefiting more than 6.6 million people. The program strengthened local governance and financial systems, enabling cities to plan, deliver, and sustain employment-generating urban development, even amid challenges such as conflict and the COVID-19 pandemic.
Ethiopia’s rapid urban growth, projected to nearly triple the urban population from 15 million in 2012 to over 42 million by 2034, presents both challenges and opportunities. The UIIDP addressed these by partnering with local governments to enhance institutional capacity, focusing on planning, management, and financial sustainability to support urban development and employment generation.
A central element of the program was building local institutions. The UIIDP equipped city administrations with the skills and systems needed for robust governance and financial management, resulting in a 262% increase in municipal revenue over five years. Inclusive governance practices were promoted, increasing women’s participation in decision-making and managerial roles, ensuring more equitable development outcomes.
Infrastructure investment formed the cornerstone of job creation. Between 2018 and 2024, the UIIDP financed over 2,700 km of roads and developed 2,700 hectares of serviced land. These initiatives generated 1.15 million jobs, nearly half of which were filled by women, while improving urban mobility, access to services, and the business environment. The improvements supported small and medium enterprise growth, formal job opportunities, and investment attraction, contributing to broader economic development.
Even in the face of disruptions, including regional conflicts and the pandemic, the UIIDP maintained progress through flexible funding and remote monitoring, demonstrating resilience in sustaining both infrastructure improvements and associated livelihoods.
The program underscores the potential of linking urban investment with employment outcomes, offering lessons in capacity building, inclusive governance, and infrastructure development. Ethiopia’s experience illustrates how urban programs can foster resilient, economically active cities where growth benefits are shared broadly, addressing both rapid urbanization challenges and youth unemployment.
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