By: Ecofin agency

Ethiopia is accelerating the rollout of key infrastructure to strengthen its supply chain with Djibouti, which handles nearly 80% of the country’s imports. The latest step is the launch of the Mieso–Dire Dawa highway, which adds to large-scale railway and logistics projects.

The 144 km road, estimated at 62.6 billion birr (about $440.3 million), is partly financed by the World Bank. It will connect the Oromia and Somali regions to Dire Dawa, improving access to Djibouti. Authorities expect it to cut transport costs and delays, boosting the competitiveness of the eastern economic corridor.

The project complements the modernization of the 752 km Addis Ababa–Djibouti railway, part of a $2.6 billion strategic plan unveiled in October 2024 by the Ministry of Transport. The goal is to build an efficient multimodal network linking the capital with the country’s main maritime outlet.

In parallel, Ethiopia is investing in logistics platforms. With support from China, Dire Dawa hosts an industrial zone with a dry port that includes warehouses, a container terminal, and storage facilities. It connects to the Modjo dry port near Addis Ababa and is considered a cornerstone of the national logistics system. In October 2024, authorities also launched construction of an industrial zone in Oromia, which will add to existing sites to form an integrated logistics hub.

Through these facilities, Addis Ababa aims to ease supply chain bottlenecks that drive up costs and extend delivery times. By streamlining trade flows, the projects could also help the country take greater advantage of the African Continental Free Trade Area (AfCFTA).

Beyond Djibouti-linked corridors, Ethiopia is also exploring access to other coastal neighbors such as Somaliland, Somalia, Kenya, and Sudan to diversify its maritime outlets.