The initiative, which had a grant of 740 million dollars from the International Development Association, aims to improve regional connectivity and logistics efficiency by renovating the corridor, which connects with the port of Djibouti.

Ethiopian Finance Minister Ahmed Shide said that improving regional connectivity and trade is essential to unlocking the country’s economic potential, as well as supporting the commitment to foster inclusive growth and integration.

More than 95 percent of Ethiopia’s import and export trade (by volume) uses the Addis-Djibouti corridor. The project will upgrade the road, including the Mieso-Dire Dawa section, which is currently in poor condition and unsuitable for increasing truck traffic, forcing users to take a longer ride via Mille, adding 146 kilometers to the route.

The repair will reduce travel time, better-up road safety, save fuel and maintenance costs, and reduce pollution. It will also provide opportunities for private sector participation in the operation of trucking terminals and investments in feeder roads will connect local communities to the main corridor, increase job opportunities for underserved localities and for women.

The director of Regional Integration for Africa and the Middle East of the World Bank, Boutheina Guermazi, specified that the project is one of the priority operations supported in the Horn of Africa to help connect the interior with ports and markets, and to increase opportunities for regional trade.

The project is aligned with the World Bank Group Country Partnership Framework for Ethiopia and is part of the Horn of Africa Initiative, which aims to address common development challenges in member countries, including Djibouti, Kenya, Ethiopia, Eritrea, Somalia, Sudan and South Sudan. It also aligns with the African Continental Free Trade Area, promoting socio-economic development, reducing poverty and increasing the continent’s competitiveness in global economy.

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