By: Ambassador Media
Date: May 2025
Introduction
As Ethiopia grapples with one of the worst humanitarian crises in its modern history, Prime Minister Abiy Ahmed’s administration is pressing ahead with a controversial project: the construction of a lavish new national palace, reportedly costing over 13 billion Ethiopian birr (approximately $230 million USD). This project, hailed by the government as a symbol of national pride and unity, has ignited widespread criticism both domestically and internationally.
How can a government justify erecting a palace when over half the population needs humanitarian assistance, large regions remain engulfed in conflict, inflation is crippling everyday survival, and public trust is rapidly eroding? This analysis seeks to dissect the political priorities behind this decision, exploring its implications on governance, public perception, and Ethiopia’s fragile socio-economic fabric.
- A Nation in Crisis
Humanitarian Emergency
According to UN and international agencies, more than 20 million Ethiopians are currently in urgent need of food, shelter, or medical assistance. Drought, displacement, and the aftermath of protracted wars in Tigray, Amhara, Oromia, and other regions have devastated communities. Food insecurity is rising, malnutrition rates are alarming, and public services are crumbling.
Conflict and Insecurity
Despite a nominal peace deal with the Tigray People’s Liberation Front (TPLF) in late 2022, armed conflict continues across multiple regions. The federal government faces opposition from ethnic militias and insurgent groups, particularly in Oromia and Amhara. The security apparatus remains stretched thin, with thousands displaced monthly due to fighting.
Economic Collapse
Inflation has reached record-breaking levels, with essential goods becoming unaffordable for the average citizen. Youth unemployment is rampant, the birr has devalued significantly, and foreign investment is retreating amid instability and governance concerns. Basic services like healthcare, education, and infrastructure have been sidelined, with the public bearing the brunt.
- The Palace Controversy
Project Overview
The planned palace, part of the so-called “Chaka Project,” is envisioned as a grandiose new seat of power that will consolidate various government offices and ceremonial functions. It is also intended as a tourist attraction and national monument.
However, with a price tag exceeding 13 billion birr, it is difficult to see the justification beyond personal legacy-building and image projection.
Public Outrage
Critics have pointed out the glaring contradiction: while millions go hungry and live under plastic shelters, the government is investing colossal sums into architectural opulence. For many Ethiopians, the palace is not a symbol of hope or unity, but a painful reminder of government detachment and misplaced priorities.
A growing number of opposition leaders, civil society members, and even former allies have denounced the palace as an insult to a suffering nation. Online movements and hashtags demanding “Food before Palaces” and “People over Prestige” have gained momentum.
- Governance and Accountability
This palace project is not just about money—it reveals a deeper issue in Ethiopian governance: a leadership increasingly obsessed with image over substance. Prime Minister Abiy Ahmed, who once promised reform, inclusivity, and democratic transformation, is now accused of centralizing power, suppressing dissent, and promoting vanity projects over meaningful development.
Meanwhile, transparency remains elusive. Contracts for the palace construction have not been made public, and the selection of companies and funds allocation lacks parliamentary or civic oversight.
- Strategic Miscalculations
Abiy Ahmed’s administration appears to be following a pattern common among authoritarian-leaning regimes: using symbolic infrastructure to project strength, even as the state internally weakens. The palace may provide short-term prestige, but it undermines long-term legitimacy.
This approach backfires when citizens face daily hunger, repression, and fear. Ethiopia’s developmental needs are enormous, and every birr spent on marble and granite is a birr not spent on food, peace, or education.
- What Should Be Done
Immediate Halt to the Palace Project: Redirect funds to humanitarian response and rebuilding war-affected areas.
Transparent Budgeting: Make government spending public and subject to independent audit and parliamentary review.
Invest in Human Capital: Prioritize healthcare, education, agriculture, and job creation over vanity infrastructure.
Inclusive Dialogue: End the culture of exclusion and suppression. Bring all regional and political actors to the table to build a sustainable path forward.
Conclusion
As Ethiopia stands at a historic crossroads, the building of a 13-billion birr palace amid mass suffering is not just economically reckless—it is morally indefensible. Prime Minister Abiy Ahmed’s government must decide whether it will be remembered for rescuing a nation or for raising monuments over its ruins. The time for performative nationalism has passed; Ethiopia needs action, compassion, and accountability—not palaces.
