AfDB approves $214.4 million for South Sudan-Ethiopia-Djibouti transport corridor

JUBA – The African Development Bank Group (AfDB) has approved $214.47 million in financing to kick-start the second phase of the South Sudan-Ethiopia-Djibouti Transport Corridor Project, a flagship regional integration initiative expected to boost trade, connectivity, and economic growth across the three countries.

According to a statement obtained by Sudans Post on Thursday, the financing package comes from AfDB’s concessional window and includes grants of $181.5 million for Ethiopia, $29.71 million for Djibouti, and $1.96 million for South Sudan. South Sudan will receive an additional $1.30 million from the Bank’s Transition Support Facility, which targets countries facing fragility and reconstruction challenges.

Phase II of the project will finance significant upgrades and new construction works to strengthen regional transport links.

In Ethiopia, the funds will support the construction of a 67-km expressway, along with the deployment of intelligent transport systems to improve traffic management and road safety. The project will also upgrade 50 km of feeder roads to enhance access for rural communities.

In Djibouti, the works will focus on upgrading the 18-km Dikhil-Mouloud section, a key stretch serving cargo movements between the interior and the country’s strategic port infrastructure. An additional 15 km of feeder roads will also be improved to support local livelihoods and mobility.

In South Sudan, the financing will support the update of technical studies for the planned upgrade of the 280-km Kapoeta-Boma-Raad road, a critical link for accessing markets in Ethiopia and Djibouti.

Mike Salawou, AfDB’s Director for Infrastructure, Cities and Urban Development, said the corridor is central to economic transformation in the Horn of Africa.

“The transport corridor between South Sudan, Ethiopia and Djibouti is an essential vector for development as it will reduce transport costs, improve connectivity with Djibouti’s ports for land-locked countries, link production areas to regional and continental markets, boost trade flows, facilitate the cross-border movement of goods and people, and strengthen the agricultural and livestock value chains on which most of the communities along the corridor are heavily dependent,” he said.

The project also includes extensive capacity development components.

In Ethiopia, a new automotive and engineering technical and vocational training centre will be built and equipped, with at least 300 women and youth set to receive training in agro-industrial technical skills and entrepreneurship, including business planning, financial management, marketing, leadership, and innovation.

In Djibouti, 10 engineers — including five women — will participate in a professional internship programme designed to enhance technical expertise in transport infrastructure.

In South Sudan, the project will strengthen the institutional and human resource capacities of the Ministry of Roads and Bridges and the Roads Authority, improving the country’s ability to plan, supervise, and maintain major road works.

The Bank said the initiative is part of its broader efforts to promote regional integration, enhance resilience, and stimulate inclusive growth in East Africa.