The World Bank Group has approved an additional grant of US$45 million to support the Horn of Africa Initiative: Djibouti Regional Economic Corridor Project. The financing is designed to strengthen regional connectivity, improve logistics efficiency, and enhance road safety along the strategic Djibouti–Addis Southern Corridor, a key trade route serving the Horn of Africa.
This latest funding builds upon earlier investments, including an initial US$70 million project approved in 2021 and US$90 million in additional financing approved in 2024. With the new allocation, total World Bank support for the corridor project reaches US$205 million, reflecting the importance of the transport route for regional trade and economic integration.
A major focus of the new financing is improving road safety. The project will widen high-risk sections of National Road 1 between Arta and Doudoubala into a dual carriageway with median separation. Additional investments will include enhanced drainage systems, stronger pavement structures, and climate-resilient infrastructure capable of withstanding extreme weather conditions such as intense rainfall and high temperatures.
The project also introduces a dedicated component for road safety management and safer access. This will support stronger institutions, improved speed management and enforcement systems, and enhanced vehicle safety regulations. These measures aim to reduce accidents and strengthen the overall safety of one of the region’s busiest transport corridors.
Beyond infrastructure improvements, the financing seeks to generate local economic benefits, particularly for women. Gender-responsive roadside rest areas and marketplaces will be developed, with at least half of the market stalls reserved for women entrepreneurs. Business advisory services will also be provided to help strengthen economic opportunities for local communities. The project is expected to create approximately 550 jobs.
According to World Bank officials, the investment demonstrates a commitment to improving the safety, resilience, and efficiency of a critical regional transport corridor while creating opportunities for communities living along the route. Djibouti’s government views the corridor as a vital economic asset that supports regional integration, trade resilience, and the country’s ambition to serve as a leading logistics hub for the Horn of Africa.
By 2033, the project is expected to significantly improve transport and trade performance by reducing travel times, shortening truck border-crossing delays at Guelileh, expanding access to resilient road infrastructure for more than 250,000 people, and reducing road traffic fatalities by 30 percent. The initiative will also rehabilitate 70 kilometers of roads to climate-resilient standards and expand real-time traffic and incident management systems, contributing to safer and more efficient regional transportation networks.
