The Ethiopia-Djibouti Railway
Hey everyone! In today’s blog, I want to go into a deep dive into one of the case studies I am working on. The Ethiopia-Djibouti Railway, funded by MDBs including the African Development Bank (AfDB) and the World Bank, connects landlocked Ethiopia to the Port of Djibouti, significantly improving trade and transportation efficiency in the region.
One of the key areas of investment is in the Ethiopia-Djibouti Transport Corridor Project Phase I, will enhance logistics and road access to Ethiopian seaports and deepen regional economic, trade, and transport integration. The project will construct 60km of the new 126km 4-lane expressway from Adama to Awash. The expressway is along the southern export-import route through the Dewele/Galile border point, a shorter route to the sea by 120km compared to the existing northern route passing through the Galafi border point.
The project will cost 181.60 million units of account (UA) and is financed by an ADF Grant of UA 69.64 million to Ethiopia and an ADF Grant of UA 3.80 million to DoE contribution of UA 108.16 million. The road work will take 4.5 years, and the various Djibouti consultancy services will take up to 3 years. The project beneficiaries include businesses in agriculture, trade, and export-import sectors. Djibouti will benefit from increased trade, port revenues, jobs, bankable projects, and improvable capacity in the management of the transport sector.
Shown below are some specific financials I consolidated from my research.
