The Djibouti Regional Economic corridor has received a major boost after the World Bank approved US$90 million in additional financing.
The new funding will expand the scope of the corridor project. Established in December 2021, the Djibouti corridor project aims to improve regional resilience and efficiency, enhance logistics efficiency in Djibouti, particularly along the Djibouti-Addis Southern corridor.
The Djibouti Regional Economic Corridor is also a key component of the Horn of Africa Infrastructure Connectivity and Regional Economic Integration, encompassing Kenya, Djibouti, Somalia, Eritrea, and Ethiopia.
According to a statement released by World Bank, the new funding will used to rehabilitate, improve, manage and maintain the Southern Corridor Road. Also, the financing will support activities aimed at enhancing transit facilitation to reinforce regional integration.
During a visit to Djibouti, the World Bank Vice President for the Middle East and North Africa said “This additional financing will help Djibouti to further strengthen its position as a regional trade hub and improve the lives of its people.”
“The project will also contribute to the country’s efforts to achieve its Vision 2035, which aims to diversify the economy and enhance social inclusion,” he added.
Djibouti serves as a key entryway to the Horn of Africa because of it’s strategic location at the convergence of the Indian Ocean and the Red Sea. Over 95% of Ethiopia’s export-import trade uses the Djibouti-Addis corridor.
The development comes as reports emerged in August 2024 that Djibouti planned to offer Ethiopia exclusive access to its new new 690 hectare mega port amid the rising standoff between Somalia and Ethiopia.
Djibouti’s Minister of Economy and Finance Ilyas Moussa Dawaleh said “we are determined to lead the way. Therefore, we will continue to invest in the infrastructure” harvest collectively our regional development and integration.”
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