World Bank Approves $90m For Horn Corridor Development

Sep 22 , 2024

The World Bank has approved 90 million dollars in additional financing for the Addis Abeba to Djibouti road corridor development project, part of a broader initiative for regional integration in the Horn of Africa, encompassing the two nations along with Eritrea, Kenya, and Somalia. The new financing will support the rehabilitation, improvement, management, and maintenance of three sections of the Southern Corridor Road. The trade route, which extends from Addis Abeba to Djibouti's ports, has witnessed an exponential increase in traffic over the years. Dubbed 'The Horn of Africa Initiative: Djibouti Regional Economic development," the new support will expand the scope of the 70-million-dollar original project which was approved in December 2021. It aims to enhance regional connectivity, resilience, logistics efficiency, improve accessibility. According to Ousmane Dione, World Bank vice president for the Middle East and North Africa, the additional financing will support Djibouti's efforts to further strengthen its regional trade integration with other countries. He also noted the contribution to the country’s efforts to achieve economic diversification. Djibouti's strategic location at the crossroads of regional trade and connectivity has seen its importance grow significantly over the past decade. Bordering the Red Sea, Arabian Sea, Indian Ocean, and the Gulf of Aden, the regional corridor is crucial for the movement of goods and services in the region, such as Ethiopia, that transports 95pc of traded goods through Djiboutian ports.