The African Development Bank Group (AfDB) has taken a major step forward in modernizing transport infrastructure in East Africa. Meeting on 3 December in Abidjan, its Board of Directors approved $214.47 million to finance the second phase of the South Sudan–Ethiopia–Djibouti transport corridor, one of the Horn of Africa’s most transformative infrastructure projects.
The funding comes primarily from the African Development Fund (ADF), the Bank’s concessional lending window. Ethiopia receives the largest share with $181.5 million. Djibouti will benefit from $29.71 million, while South Sudan will receive $1.96 million from the ADF, supplemented by $1.30 million from the Transition Support Facility, a mechanism designed to assist fragile states.
Strategic road works to boost regional connectivity
This second phase focuses on upgrading several key segments:
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In Ethiopia:
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Construction of a 67-km expressway,
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Deployment of intelligent transport systems (ITS),
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Rehabilitation of 50 km of access roads.
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In Djibouti:
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Rehabilitation of the Dikhil–Mouloud section (18 km),
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Improvement of 15 km of access roads.
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In South Sudan:
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Updating technical studies for the modernization of 280 km on the Kapoeta–Boma–Raad axis.
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These interventions complement works initiated during the project’s first phase. Once completed, the corridor will strengthen trade flows between a landlocked country (South Sudan), a regional economic powerhouse (Ethiopia), and the key port hub of Djibouti, which already handles over 90% of Ethiopia’s external trade.
A corridor with major economic impact
For the AfDB, the project is transformative not only in terms of infrastructure, but also in its economic potential.
According to Mike Salawou, the Bank’s Director of Infrastructure, Cities and Urban Development:
“The transport corridor between South Sudan, Ethiopia and Djibouti is a critical development lever. It will reduce transport costs, improve access to Djibouti’s ports, boost trade flows and strengthen agricultural and livestock value chains on which most communities along the corridor depend.”
Improved connectivity is expected to ease the movement of goods and people in a region where cross-border trade is often hindered by poor roads, especially in South Sudan. Rural communities, heavily reliant on agro-industry and livestock, should benefit directly from lower logistics costs and better access to regional and continental markets.
Building human capacity: a core component of the project
Beyond the physical infrastructure, the AfDB is investing in skills and institutional development. Key initiatives include:
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In Ethiopia:
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Construction and equipment of a TVET center specializing in automotive training in the Afar region,
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Training for 300 women and youth in entrepreneurship, financial management, innovation and marketing,
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Technical capacity-building in agro-industry.
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In Djibouti:
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A training and internship program for ten engineers, including five women.
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In South Sudan:
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Support for the Ministry of Roads and Bridges and the National Road Authority to strengthen institutional capacity and project management.
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The aim is to pair infrastructure delivery with the development of a skilled local workforce, ensuring long-term sustainability.
A missing link for regional integration
The corridor aligns with continental integration strategies driven by the African Union, the AfDB and IGAD. In the long run, it is expected to:
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improve the flow of goods between East and Central Africa,
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offer South Sudan an alternative outlet to the sea beyond Sudan,
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consolidate Djibouti’s position as a major regional logistics platform,
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support the implementation of the African Continental Free Trade Area (AfCFTA).
Once fully operational, the corridor will likely attract additional private investment in logistics, transport and agro-industrial value chains across border zones that remain largely underdeveloped.
