AfDB approves £80m funding for Ethiopia-Djibouti transport corridor project


The African Development Bank Group (AfDB) has agreed to provide loan of $98m (£80.5m) to the government of Ethiopia to fund the first phase of the Ethiopia-Djibouti Road Transport Corridor Project.

African Development Bank Group Ethiopia country manager Abdul Kamara and Ethiopia Finance Minister Ahmed Shide signed the financing deal.

The loan, which will be granted from the African Development Fund (ADF), will be used to fund the $255m project.

The project is also backed by a $5.3m (£4.3m) ADF grant to the government of Djibouti and a co-financing contribution of $151m (£124.1m) by the government of Ethiopia.

The latest grant to Ethiopia’s road transport sector is part of the bank’s plan to boost regional integration and connectivity, especially access to seaports.

Construction on the project is scheduled to commence in 2020 and is planned to be implemented over a five-year period.

The project involves the construction of the first 60km of a four-lane expressway section of the new 126km stretch from Adama to Awash. It also includes the design of a one-stop border post at Dewele, Ethiopia.

In addition to enhancing trade by significantly reducing transport costs, the project is expected to accelerate the economic growth of Ethiopia and its neighbour Djibouti, as it is part of the main import-export corridor.

AfDB said in a statement: “The expressway is expected to improve access to markets for farmers and rural communities. Other beneficiaries include some 3,000 truck-drivers who work the 900 km between Djibouti and Addis Ababa, and youths, who will receive over 95% of the job opportunities during the construction phase.”

In June 2019, ADF approved a loan of $81.67m (£64.3m) to co-finance sections of the 695km Eastern Corridor road in Ghana.

The road links Ghana’s capital Accra with the northern hinterland and across the borders to the Sahel region.

The project, which will cost $113.27m (£89.4m), will cover 60km of roads, two interchanges and related civil works that will include community support initiatives which will improve the livelihood in the catchment area.

Image: The AfDB funding will be used for phase one of the Ethiopia-Djibouti Road Transport Corridor Project. Photo: courtesy of satynek from Pixabay.

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