The Addis-Djibouti corridor, a vital trade route and a lifeline for Ethiopia’s 120 million people, will get a significant upgrade thanks to the newly approved Horn of Africa Initiative’s Regional Economic Corridor Project. The project, endowed with a $730 million grant from the International Development Association* (IDA), aims to improve regional connectivity and logistics efficiency in Ethiopia along this key trade route connecting landlocked Ethiopia to the port of Djibouti.
“Improved regional connectivity and trade are essential to unlocking Ethiopia’s economic potential,” said H.E. Ahmed Shide, Minister of Finance of the Federal Democratic Republic of Ethiopia. “This project is important to support our commitment to fostering inclusive growth and regional integration, as we are now fully focused on sustaining the growth and reaping the peace dividends,” he added.
Over 95% of Ethiopia’s import-export trade (by volume) uses the Addis-Djibouti corridor. The project aims to upgrade the road to Djibouti, including the Mieso-Dire Dawa section, which is currently in poor condition and unsuitable for growing truck traffic. This section forces road users to take a longer route through Mille, adding 146 kilometers to their journey. Upgrading the Mieso-Dire Dawa section to a four-lane expressway will reduce transport time, enhance road safety, save fuel and maintenance costs, and reduce pollution. This upgrade is crucial for Ethiopia’s economic growth and social development, as it will improve the efficiency and capacity of this crucial trade route. Read more