The African Development Bank Group has approved $214.47 million to launch Phase II of the South Sudan–Ethiopia–Djibouti Transport Corridor Project, marking a major step toward strengthening regional trade and connectivity in the Horn of Africa. The concessional financing package allocates $181.5 million to Ethiopia, $29.71 million to Djibouti, and $1.96 million to South Sudan, with an additional $1.30 million from the Bank’s Transition Support Facility to help address fragility.
The second phase will deliver key infrastructure upgrades across the three countries. Ethiopia will construct a 67-kilometre expressway and deploy intelligent transport systems, while Djibouti will modernize the 18-kilometre Dikhil-Mouloud section. South Sudan will update studies for the eventual upgrade of 280 kilometres of the Kapoeta–Boma–Raad road. Feeder road improvements—50 km in Ethiopia and 15 km in Djibouti—will further strengthen rural access.
According to AfDB Director Mike Salawou, the corridor is critical for reducing transport costs, boosting trade flows, and linking landlocked economies to Djibouti’s ports. The project also includes strong capacity-building components, including technical training for women and youth, vocational infrastructure in Ethiopia, and institutional strengthening for road agencies in all three countries.
