AfDB approves $98m financing for Ethiopia-Djibouti road project
The project is set to enhance trade by significantly reducing transport costs, thereby accelerating the economic growth of Ethiopia and Djibouti.
NAIROBI - The African Development Bank (AfDB) last month approved a $98 million financial package for Ethiopia for a road transport corridor project to neighbouring Djibouti.
The project’s total cost is $255 million, comprising an AfDB grant of $98 million to Ethiopia’s government and an AfDB grant of $5.3 million to Djibouti’s government, plus a co-financing contribution of $151 million by Ethiopia’s government.
“The project will enhance trade by significantly reducing transport costs, thereby accelerating the economic growth of Ethiopia and its neighbour Djibouti, as it is part of the main import-export corridor,” the AfDB said in a statement.