Addis-Djibouti Corridor To Receive US$730 Million Funding For Upgrades

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Addis-Djibouti Corridor will be significantly upgraded with a US$730 million grant from the World Bank following the recently approved Horn of Africa Initiative Regional Economic Corridor project.This important trade route and livelihood source for a total of 120 million Ethiopians received US$730 million from the International Development Association (IDA) to be utilized in improving connectivity in the region and the efficiency and reliability of Ethiopian logistics along this important trade route connecting landlocked Ethiopia to the port of Djibouti.”Better regional connectivity and good trade are key to unlocking Ethiopia’s potential and economic potential,” said Ahmed Shide, Ethiopia’s finance minister. “This project is vital in supporting our commitment to sustain and advance inclusive development and regional community as we now focus fully on sustaining and embracing growth and reaping the benefits of peace,” he added.

Addis-Djibouti Corridor Upgrades Benefits

More than 95% of Ethiopia’s import and export trade occurs via the Addis-Djibouti road corridor.This project aims to improve the road to Djibouti which includes part of Mieso-Dire Dawa which is currently in poor condition and unsuitable for increased road traffic. For this section of road, road users have to travel a longer distance than Mille, namely a further 146 kilometers. Upgrading the Mieso-Dire Dawa section to a four-lane highway will ultimately result in shorter commute times, more safety for motorists on the road, savings and lower costs for fuel and maintenance of their cars, and less pollution. This improvement is very important for the social and economic growth of the Republic of Ethiopia as it will improve and increase the efficiency and capacity of this important trade route.Additional benefits and gains from the project will come from improving Ethiopia’s commercial competitiveness by improving logistics efficiency through regulatory and institutional reforms, investing in logistics facilities and strengthening the government’s ability to facilitate the transition to rail-transport.

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Furthermore, the project will also create opportunities for the private sector to participate in the operation of the truck terminals. In addition, investments in secondary roads will connect local communities to the main corridor, increasing employment opportunities for disadvantaged communities and women and contributing to long-term development outcomes.“This is a transformative initiative for Ethiopia and the Horn of Africa region. “It will improve connectivity, boost trade, create jobs and increase access to essential services and the flow of goods and people in the Horn Region” said Ousmane Dione, World Bank Group director for Eritrea, Ethiopia, South Sudan and Sudan.”The Addis-Djibouti Regional Economic Corridor project is one of the priority actions we support at the Horn region in order to connect the hinterland to ports and markets and enhance regional trade opportunities.”The expected results go beyond economic growth and social development in Ethiopia as they will strengthen the region.”