AfDB, Ethiopia Sign Transport Corridor Agreement

The African Development Bank (AfDB) and the Government of Ethiopia have signed an agreement for the first phase of the Ethiopia-Djibouti Transport Corridor.

The US$98 million grant agreement from the African Development Fund (ADF) will finance a significant portion of the project. The remaining US$157 million will be provided via an ADF grant of US$5.3 to the Government of Djibouti and a co-financing contribution of US$151 from the Government of Ethiopia. 

The project is expected to start in 2020, with completion targeted for 2025. Work on the Transport Corridor will include a 4-lane expressway from Adama to Awash, with a one-stop border post at Dewele. The jobs created during the construction phase will be prioritised for youths in the region.

According to a statement from the AfDB, “The project will enhance trade by significantly reducing transport costs, thereby accelerating the economic growth of Ethiopia and its neighbour Djibouti, as it is part of the main import-export corridor.”

Ethiopia’s Minister of Finance Ahmed Shide and AfDB country manager for Ethiopia Abdul Kamara signed the agreement.