PSI Recommends Establishment of Dedicated Smart City Development Institute

Addis Ababa, September 21, 2026 (ENA) — The Policy Studies Institute (PSI) has stressed the need for coordinated institutional, technological and human-capital efforts to accelerate smart city development and improve the competitiveness of Ethiopian cities, recommending the establishment of a dedicated institution with clear authority for smart city development.
The study presented at a workshop under the theme “Smart City Development Practice in Ethiopia: From Smart Governance, Mobility and Environment Dimension” today, recommended the establishment of a dedicated institution with clear authority for smart city development, integrating institutional work flows and technology-based transport services, and developing competitive technological infrastructure and structured information management systems.
It also recommended smart city management that provides convenient, safe and environmentally sustainable urban spaces, as well as continuous investment in human resource development.
The study conducted by PSI’s Policy Research Center for Industry, Urban, and Infrastructure Development looked at how Ethiopian cities can improve governance, mobility and environmental management through technology and stronger institutional systems.
It also identified challenges in current urban development practices and proposes measures to support the development of modern, efficient and sustainable cities.

Opening the workshop, PSI Deputy Director-General Major General Ahmed Hamza said Ethiopia needs to make better use of its human, financial and technological resources and coordinate efforts in developing smart cities.
“Considering our country’s limited resources, focusing on synchronized efforts toward smart city development and optimizing human capital, financial management, and technology adoption systems are vital for the growth and competitiveness of Ethiopian cities,” he noted.
According to him, Ethiopia’s urban development practices need to be modernized through technology transfer, human resource development, sector prioritization and improved implementation capacity. 

“Building smart cities demands reviewing and restructuring existing sector institutions,” Major General Ahmed said, stressing the need for harmonized legal frameworks, stronger data management and timely corrective action.

The Policy Studies Institute (PSI) is a government research institution that conducts policy studies and research and develops policy and strategy recommendations to support national development.

PSI's work is aligned with national development priorities, including the 10-Year Development Plan and Digital Ethiopia 2030.

Established by the merger of the Ethiopian Development Research Institute (EDRI) and the Policy Study and Research Center (PSRC) in November 2018, it has been conducting rigorous research and policy analysis that provide knowledge-based inputs to policy making and policy implementations, and disseminate research outputs and findings to the policy and research community, academia, the development community and other stakeholders.