The Ethiopia Government and the World Bank recently signed a $730 million corridor project agreement, to improve a major route between Addis Ababa and Djibouti.

Ethiopia Ministry of Finance in a statement said the HoA Regional Economic Corridor Project (under Ethio-Djibouti) is trying to enhance the connectivity and logistics performance between the East African countries via the strategic Addis–Djibouti road corridor.

It elaborated that the project will finance the construction of 142 kilometers of road from Miesso to Dire Dawa, improving its quality and safety, reducing time spent traveling and costs, and increasing transport capacity and efficiency.

According to the statement, the route covers more than 90% of Ethiopia’s Maritime trade.

“The project will also support local communities along the road section area by constructing infrastructures to improve access to education, health, and water, as well as linking them to the main corridor by constructing secondary roads.

“The project is part of the HoA Initiative, a regional partnership platform that promotes integration among others, through infrastructure development, linking to one of the priority corridors identified under the Initiatives, Djibouti- Berbera corridor”, the Ministry said.

The Agreement was signed virtually between the Ethiopian Minister of Finance, Ahmed Shide, and the Regional Integration Director of the World Bank, Ms. Boutheina Guermazi.

Shide also expressed gratitude to the World Bank for its bold support and reiterated Ethiopia’s commitment to regional integration.

“As a current Chair of the HoA Initiative and Finance Minister, I strongly believe that infrastructure development is essential for achieving long-term growth and stability in our region”, said Shide.