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Posted By OrePulse
Published: 11 Dec, 2025 10:51

AfDB Backs Key Expressway Segment on Ethiopia’s Djibouti Logistics Corridor

By: Birr metrics

Ethiopia has secured a $184 million grant from the African Development Bank (AfDB) to accelerate the construction of a critical stretch of the Adama–Awash expressway, a key component of the country’s primary trade corridor to the Port of Djibouti. The agreement, signed in Addis Ababa on December 10, will finance a 67-kilometer section between Melka Jilo and Awash, addressing one of the main missing links in the 130-kilometer road project.

The expressway is designed to modernize the Ethiopia-Djibouti transport corridor, which handles over 90% of Ethiopia's maritime trade. Upon completion, the access-controlled, four-lane highway will connect Addis Ababa to Awash, significantly reducing travel times, alleviating congestion, and lowering logistics costs. Finance Minister Ahmed Shide stated the project reflects Ethiopia's commitment to regional stability and integration.

Construction, led by a joint venture between China Communications Construction Company and a local contractor, began in 2021 but has faced delays due to land acquisition, environmental clearances, and community resettlement. The new funding follows earlier AfDB support and signals the Bank's continued commitment to Ethiopia's infrastructure and economic recovery, including potential future investments in major transport and aviation projects.

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