The African Development Bank (AfDB) Board of Directors has approved $214.47 million to fund the second phase of the South Sudan–Ethiopia–Djibouti Transport Corridor Project, a key initiative to enhance regional connectivity and trade.
The financing, sourced from the Bank’s concessional window, includes $181.5 million for Ethiopia, $29.71 million for Djibouti, $1.96 million for South Sudan, and an additional $1.30 million from the Bank’s Transition Support Facility to assist South Sudan, a country facing fragility challenges.
Phase II of the project will deliver significant infrastructure upgrades across the three nations. In Ethiopia, plans include constructing a 67-kilometre expressway and deploying intelligent transport systems, alongside improvements to 50 kilometres of feeder roads. Djibouti will see upgrades to the 18-kilometre Dikhil–Mouloud section and 15 kilometres of feeder roads. In South Sudan, studies will be updated to modernize 280 kilometres of the Kapoeta–Boma–Raad road.
“The transport corridor between South Sudan, Ethiopia, and Djibouti is a vital development vector. It will lower transport costs, improve access to Djibouti’s ports for landlocked countries, link production areas to regional and continental markets, boost trade flows, and support agricultural and livestock value chains,” said Mike Salawou, AfDB’s Director for Infrastructure, Cities, and Urban Development.
The project also features robust capacity-building components. Ethiopia will establish a new automotive and engineering technical and vocational training centre, training 300 women and youth in agro-industrial technical skills and entrepreneurship, including business planning, marketing, and leadership.
Djibouti will offer professional internships to 10 engineers, including five women. In South Sudan, the initiative will enhance institutional and human resource capacities within the Ministry of Roads and Bridges and the Roads Authority.
Phase II of the corridor project is expected to strengthen cross-border trade, facilitate movement of goods and people, and contribute to regional economic integration, while empowering local communities through skills development and training.
