The African Development Bank (AfDB) has approved a $184 million Grant Agreement to the Federal Democratic Republic of Ethiopia to support the second phase of a vital transport corridor linking Ethiopia, Djibouti, and South Sudan.

The financing is specifically earmarked for the construction of the 67-kilometre Melka Jilo to Awash expressway, which represents a key missing link along the existing Addis Ababa–Djibouti corridor.

This route is indispensable to the nation's economy, as it currently handles over 90% of Ethiopias maritime trade. The project is therefore essential for national logistics, regional connectivity, and the deeper economic integration of the Horn of Africa.

During the signing ceremony, Ahmed Shide, Ethiopia's Minister of Finance, underscored the project's alignment with the Horn of Africa Initiative. He stressed that the investment reflects Ethiopia's firm commitment to regional stability, cooperation, and integration.

Beyond the core road infrastructure, the project is designed to deliver comprehensive benefits. It includes essential trade facilitation measures, alongside dedicated initiatives for skills development targeting youth and women, ensuring the project delivers long-term, inclusive benefits for local communities.

The Grant Agreement was formally signed by Minister Ahmed and Dr. Alex Mubiru, the Director General for East Africa at the African Development Bank.

The signing followed a productive meeting between Minister Ahmed and Dr. Mubiru, who is on his first official visit to Ethiopia. Dr. Mubiru reaffirmed the Bank's dedication to strengthening its strategic cooperation with the country across several areas. These areas of ongoing support include:

Providing budget support to help sustain Ethiopia's ongoing reform agenda.

Financing for major infrastructure projects, notably the proposed Ethiopian Airlines Bishoftu Mega Airport.

And, continued engagement across key social and economic sectors.