The World Bank endorsed $90 million supplementary financing for Djibouti’s Regional Economic Corridor project.
“The latest support will expand the scope of the $70 million original project, approved in December 2021, to enhance regional connectivity and logistics efficiency,” the bank said Thursday in a statement.
The project is part of a broader initiative for regional integration in the Horn of Africa, encompassing Djibouti, Eritrea, Ethiopia, Kenya, and Somalia. Launched in 2019, the Horn of Africa Initiative aims to deepen regional integration and foster closer economic ties.
World Bank’s new financing to Djibouti will support the rehabilitation, improvement, management, and maintenance of three sections of the Southern Corridor Road.
“This additional financing will help Djibouti to further strengthen its position as a regional trade hub and improve the lives of its people,” said Ousmane Dione, the World Bank Vice President for the Middle East and North Africa.
Djibouti’s strategic location at the crossroads of regional trade and connectivity has seen its importance grow significantly over the past decade.
Bordering the Red Sea, the Arabian Sea, the Indian Ocean, and the Gulf, the regional corridor is crucial for the movement of goods and services in the region, given Djibouti’s location on the Horn of Africa and its port facilities.
“We are determined to lead the way,” Djibouti’s Economy and Finance Minister Ilyas Dawaleh said.
“Therefore, we will continue to invest in the infrastructure and harvest collectively our regional development and integration.”
The World Bank’s portfolio in Djibouti consists of 19 projects worth a total of $401.3 million.
MG/as/APA