The World Bank’s Board of Directors has approved an additional US$90 million in financing for the Horn of Africa Initiative: Djibouti Regional Economic Corridor project.
This funding expands the original US$70 million project, approved in December 2021, to enhance regional connectivity, logistics, and accessibility along the Djibouti-Addis Southern corridor. The project is part of the broader Horn of Africa Initiative, launched in 2019, which aims to promote regional integration across Djibouti, Eritrea, Ethiopia, Kenya, and Somalia by strengthening economic ties.
The new funding will support the rehabilitation and management of three critical sections of the Southern Corridor Road, further improving the region’s infrastructure and facilitating easier transit for goods and services. In addition, the financing will provide technical assistance to the Djiboutian government to boost regional trade integration. This initiative is expected to play a key role in bolstering Djibouti’s standing as a regional trade hub and contribute to the country’s Vision 2035, which aims to diversify the economy and promote social inclusion.
Also read: Ethio-Djibouti railway CEO meets Djiboutian trade Minister for talks
According to Ousmane Dione, the World Bank Vice President for the Middle East and North Africa, this financing will not only strengthen Djibouti’s trade and logistics capacities but also improve the livelihoods of people living along the Djibouti-Addis corridor. The infrastructure improvements will enhance the movement of goods and people, supporting Djibouti’s growing importance as a strategic location for regional trade and connectivity.
Djibouti’s Minister of Economy and Finance, Ilyas Moussa Dawaleh, expressed gratitude for the World Bank’s continued support, emphasizing the country’s commitment to investing in infrastructure to lead the way in regional development and integration. Djibouti’s position at the crossroads of regional trade has made it a key player in fostering economic cooperation in the Horn of Africa, and this project will further enhance its role as a vital regional trade hub.
