The World Bank has approved an additional $45 million to support the ongoing modernisation of the Djibouti–Addis Ababa economic corridor, one of the Horn of Africa’s most vital trade routes.
The financing raises the World Bank’s total commitment to the cross-border road infrastructure program to $205 million, following earlier funding packages of $70 million in 2021 and $90 million in 2024.
The latest funding will be used to accelerate the expansion of Djibouti’s National Road between Arta and Doudoubalala, according to Djiboutian authorities. The project targets sections of the highway identified as having high accident rates and aims to improve road safety and traffic flow through the gradual construction of dual carriageways.
The Djibouti–Addis Ababa corridor serves as the primary gateway for Ethiopia’s international trade, handling the vast majority of the country’s imports and exports through the Port of Djibouti.
Authorities said the program will also finance the rehabilitation and upgrading of the Doudoubalala–Guélilé section of the road, an area vulnerable to extreme heat and periodic flooding. Planned works include measures designed to strengthen the corridor’s resilience to climate-related disruptions and reduce maintenance costs over the long term.
Additional components of the project include the construction of rest areas at Doudoubalala, the installation of two weigh stations to improve freight management and enforcement, and capacity-building support for institutions responsible for road safety.
The investment forms part of broader efforts by Djibouti and development partners to improve regional connectivity, reduce transport bottlenecks and facilitate trade flows between the Red Sea nation and neighboring Ethiopia, one of Africa’s fastest-growing consumer markets.
MG/as/APA