Ethiopia and the African Development Bank (AfDB) have signed a $184 million grant agreement to support phase-two of the Ethiopia–Djibouti–South Sudan transport corridor project.
According to an Ethiopian finance ministry statement seen by APA on Thursday, the fund is part of AfDB’s transition support facility which targets countries facing fragility and reconstruction challenges.
The fund will support the construction of a 67-km expressway from Melka Jilo to Awash, a critical missing link along the Addis Ababa–Djibouti corridor and improve traffic management and road safety.
The project will also upgrade 50 km of feeder roads to enhance access for rural communities.
The Addis Ababa–Djibouti route handles more than 90 percent of Ethiopia’s maritime trade, making it indispensable for national logistics, regional connectivity, and economic integration across the Horn of Africa.
The regional project also aims to enhance trade, improve connections, and stimulate economic growth in all three countries.
The agreement was signed by Ethiopian Minister of Finance Ahmed Shide and Alex Mubiru, Director General for East Africa at the African Development Bank.
Speaking during Wednesday’s signing ceremony, Mubiru reaffirmed the Bank’s commitment to strengthening strategic cooperation across multiple areas, including budget support to help sustain Ethiopia’s reform agenda, financing for major infrastructure projects, notably the Ethiopian Airlines Bishoftu Mega Airport, and continued engagement across key social and economic sectors.
MG/as/APA