The African Development Bank has given Ethiopia a loan of 125 million US dollars to finance phase two of the construction of the Mombasa-Nairobi-Addis Road. It is anticipated that the completion of Phase two will increase trade between Ethiopia and Kenya by reducing transport and shipping costs.

The three phase road construction project is an important element of the Trans-African Highway Network and aims to develop transport linkage between Kenya and Ethiopia. It is expected that the road will benefit the two countries and boost regional trade and integration in the Horn of Africa.

Ethiopia will be required to improve the standard of the 193 km long Ageremariam-Yabelo-Mega road section and invest in boarder and roadside infrastructure as part of the commitments to this program.

The loan agreement was signed between the Ethiopian Minister of Finance and Economic Development Sufian Ahmed and the ADB resident representative in Ethiopia, Lamin G. Barrow.

The project highlights the commitment of the African Development Bank to support the development of Ethiopia, according to Sufian.

Ethiopia needs to address non-physical barriers towards increasing with Kenya according to Mr. Barrow. The ADB is fully committed to this project and will support Ethiopian efforts to realize diversified access to seaports he said. The Bank also aims to include the countries of the horn of Africa in the current increase in trade within the Common Market for Eastern and Southern Africa (COMESA).

Source: allAfrica.com