The African Development Bank (AfDB) has signed a $184 million grant agreement with the Ethiopian government to fund Phase II of the Adama–Awash Expressway, a key section of the Ethiopia–Djibouti–South Sudan Transport Corridor Project.
The funding will finance the construction of a 67-kilometer stretch between Melka Jilo and Awash, filling a critical gap along the Addis Ababa–Djibouti trade route, which carries more than 90% of Ethiopia’s maritime trade. The project is expected to enhance logistics, strengthen regional connectivity, and boost economic integration across the Horn of Africa.
During the signing ceremony, Ethiopia’s Finance Minister Ahmed Shide highlighted the project’s strategic significance, noting that it aligns with the broader Horn of Africa Initiative and Ethiopia’s push for regional stability and cooperation. He emphasized that the expressway will not only improve infrastructure but also support trade facilitation, youth and women’s skills development, and community-focused programs to deliver inclusive, long-term benefits.
The agreement was signed by Minister Shide and Dr. Alex Mubiru, AfDB’s Director General for East Africa, who is on his first official visit to Ethiopia. Dr. Mubiru reaffirmed the Bank’s commitment to strategic cooperation, including support for Ethiopia’s reform agenda, infrastructure investments such as the Ethiopian Airlines Bishoftu Mega Airport, and continued engagement in social and economic development initiatives.
The Adama–Awash Expressway Phase II is seen as a cornerstone for Ethiopia’s national and regional development, promising to reduce transport times, facilitate cross-border trade, and strengthen the country’s position as a logistics hub in the Horn of Africa.
