Assessing Economic Value of The Emerging Trend of Constructing High-Rise Headquarters by Ethiopian Banks
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Date
2025-12-01
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Addis Ababa University
Abstract
Ethiopian banks are increasingly shaping Addis Ababa’s skyline through the construction of high-rise headquarters. This thesis examines the economic value of constructing high-rise headquarters by Ethiopian banks focusing on three areas: the contribution of bank headquarters to the local economy, the efficiency and cost-effectiveness of such investments, and their comparison with other commercial high-rises in the city. Using a mixed-method approach that combines surveys, interviews, and cost–benefit analysis, the study finds that these investments generate notable economic benefits for the local economy. They create jobs during construction and operation, stimulate local procurement, increase tax contributions, and enhance the city’s real estate market. Beyond their financial impact, they also strengthen banks’ visibility, prestige, and customer trust. According to the findings of the study, the efficiency and cost-effectiveness of high-rise bank headquarters investment appear to be generally satisfactory. However, the research also uncovers risks that these investments may not always yield the most efficient returns compared to other investments. When compared with other commercial developments, bank headquarters stand out as symbols of institutional strength, as drivers of urban transformation, and as more valuable in the market. Overall, the study suggests that while these projects carry real economic and symbolic value, banks must balance their desire for landmark buildings with strategies that ensure long-term financial sustainability and broader economic contribution.
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Ethiopian banks, Headquarter, High-rise building, Economic value, Central Business District