AfDB approves $98m grant for Ethiopia road project to Djibouti

The African Development Bank (AfDB) has approved a $98 million financial package for Ethiopia for a road transport corridor project to neighbouring Djibouti, it said late on Tuesday.

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.

“ [Prime Minsiter Abiy Ahmed] is taking bold decisions in restoring peace and security… in the region. [AfDB] is here to support the vision of the Prime Minister.” President of African Development Bank (#AfDB) Akinwumi Adesina #Ethiopia pic.twitter.com/WEupdP2cx3

— Fitsum Arega (@fitsumaregaa) October 13, 2018

REUTERS