South Sudan, Ethiopia and Djibouti Secure AfDB Funding for Vital Transport Corridor

(JUBA) – The African Development Bank Group has approved 214.47 million United States Dollars to support the second phase of the South Sudan Ethiopia Djibouti Transport Corridor, strengthening one of the most important regional trade routes in East Africa. The funding is drawn from the African Development Fund, the Bank Group’s concessional window.

The new package allocates 181.5 million United States Dollars to Ethiopia, 29.71 million United States Dollars to Djibouti, and 1.96 million United States Dollars to South Sudan. South Sudan will also receive an additional 1.30 million United States Dollars through the Bank’s Transition Support Facility. This brings South Sudan’s total to 3.26 million United States Dollars, equal to about 23.1 billion South Sudanese Pounds at the current exchange rate of 7,100 SSP per United States Dollar.

The second phase of the corridor project involves significant infrastructure works across the three participating countries. Ethiopia will construct a sixty seven kilometre expressway and introduce intelligent transport systems. Djibouti will upgrade the eighteen kilometre Dikhil to Mouloud section, while South Sudan will update design studies for the planned upgrade of two hundred eighty kilometres of the Kapoeta to Boma to Raad road. Feeder road improvements covering fifty kilometres in Ethiopia and fifteen kilometres in Djibouti are also included.

A summary of the funding distribution is shown below:

African Development Bank Director for Infrastructure, Cities and Urban Development, Mike Salawou, said the corridor plays an important role in reducing transport costs, improving access to Djibouti’s ports, and supporting land locked countries such as South Sudan. He said the road network will help connect production zones to both regional and continental markets, increase trade flows, and support communities that depend heavily on agricultural and livestock activities.

The project also includes capacity building for institutions and workers. Ethiopia will construct and equip a new automotive and engineering training centre. Three hundred women and young people will receive training in agro industrial and entrepreneurship skills, including business planning, financial management, marketing, innovation and leadership. Djibouti will provide professional internships for ten engineers, including five women.

In South Sudan, the support will help strengthen the Ministry of Roads and Bridges and the Roads Authority through training programmes and technical assistance. Similar institutional strengthening will be provided for road agencies in Ethiopia and Djibouti.

Officials say the broader transport corridor is expected to improve movement of goods and people, increase trade between the three countries, and provide South Sudan with a more reliable route to regional ports. For South Sudan, the corridor is viewed as a major step towards improving connectivity, lowering transport costs, and enabling businesses to reach markets more easily.

The African Development Bank said the project continues to advance the region’s integration goals and support long term economic development. The approval marks an important step forward for the ongoing multi country effort to improve infrastructure and expand trade opportunities.