AfDB Commits Over $214m to Second Phase Horn of Africa Transport Corridor

Dec 6 , 2025.

The African Development Bank (AfDB) has approved a 214.47 million dollars financing package for the next phase of the South Sudan-Ethiopia-Djibouti Transport Corridor Project. The funds, sourced from the Bank’s concessional window, are distributed, with Ethiopia receiving 181.5 million dollars, Djibouti 29.71 million dollars, and South Sudan 1.96 million dollars. South Sudan also secures an additional 1.3 million dollars through the Bank’s Transition Support Facility, earmarked for fragile countries.

The African Development Bank (AfDB) has approved a 214.47 million dollar concessional loan package to finance the South Sudan-Ethiopia-Djibouti Transport Corridor Project.

The investment marks the launch of the project’s second phase, with a focus on infrastructure expansion, institutional strengthening, and regional integration in a strategically crucial tri-border region.

Ethiopia is the primary beneficiary, securing 181.5 million dollars, approximately 85pc of the total financing. The funds will go toward the construction of a 67Km expressway and the rollout of intelligent transport systems (ITS) to enhance traffic management and logistics efficiency. The project also includes upgrading 50Km of feeder roads, which are linking rural communities and agricultural zones to the national and regional road networks.

The Ethiopian component also encompasses a human capital development initiative. A new technical and vocational training centre will be established in the project area, focusing on automotive and engineering skills. Around 300 women and youth will undergo training in agro-industrial entrepreneurship and business acumen, including financial management, innovation, and leadership, an approach AfDB said will reflect its increasing emphasis on inclusive development.

Djibouti will receive 29.71 million dollars to upgrade an 18Km stretch of the Dikhil-Mouloud road and improve 15Km of feeder roads. In tandem with physical infrastructure, the project supports capacity-building through a professional internship scheme for 10 engineers, half of whom will be women, introducing a gender-sensitive component into project design.

South Sudan receives the smallest direct allocation of 1.96 million dollars, with an additional 1.3 million dollars drawn from the AfDB’s Transition Support Facility, which targets fragile and conflict-affected states. These funds are earmarked to update feasibility and engineering studies for 280Km of the Kapoeta-Boma-Raad road, laying the groundwork for future infrastructure development.

In a press statement issued last week, the AfDB also seeks to build the institutional and human resource capacities of South Sudan’s Ministry of Roads & Bridges and its Roads Authority, addressing longstanding institutional weaknesses in the country’s transport sector.

According to Mike Salawou, the Bank’s director for Infrastructure, Cities & Urban Development, the transport corridor between South Sudan, Ethiopia, and Djibouti is an essential vector for development.

"It will reduce transport costs, improve connectivity with Djibouti's ports for land-locked countries, link production areas to regional and continental markets, boost trade flows, facilitate the cross-border movement of goods and people, and strengthen the agricultural and livestock value chains on which most of the communities along the corridor are heavily dependent," said Salawou, in a statement the Bank issued layte last week.

PUBLISHED ON Dec 06,2025 [ VOL 26 , NO 1336]