Ethiopia and the African Development Bank (AfDB) have signed a USD 184 million grant agreement to support Phase II of the Ethiopia - Djibouti - South Sudan Transport Corridor Project.

The funding will be used to construct a 67-kilometer expressway between Melka Jilo and Awash, filling an important gap along the Addis Ababa - Djibouti corridor. This corridor carries more than 90 percent of Ethiopia’s maritime trade and is considered essential for national logistics efficiency and regional connectivity across the Horn of Africa.

According to the Ministry of Finance, the project aligns with the Horn of Africa Initiative and is part of Ethiopia’s broader efforts to advance regional cooperation and economic integration. In addition to road construction, the initiative incorporates trade facilitation components, skills development programs for youth and women, and community-oriented activities intended to support inclusive and long-term development outcomes.

The agreement was signed by Finance Minister Ahmed Shide and Dr. Alex Mubiru, the African Development Bank’s Director General for East Africa. The signing took place during Dr. Mubiru’s first official visit to Ethiopia, following discussions on ongoing and future areas of collaboration.

AfDB’s cooperation with Ethiopia includes budget support for economic reforms and financing for major infrastructure projects, such as the planned Ethiopian Airlines Bishoftu Mega Airport, alongside continued engagement in priority social and economic sectors.

Source (including image): Ethiopian News Agency