The World Bank has approved an additional USD 45 million grant for Djibouti’s Regional Economic Corridor Project, bringing total financing for the initiative to USD 205 million. The new funding builds on earlier support approved in 2021, 2024 and 2026, strengthening efforts to improve road infrastructure, trade connectivity and climate resilience.
The additional financing will support upgrades to accident-prone sections of National Road 1 between Arta and Doudoubala. These sections will be widened into dual carriageways with two lanes in each direction and a central median, helping improve traffic flow and road safety along one of Djibouti’s most important transport routes.
The project will also introduce targeted road-safety measures across several parts of the corridor. By 2033, the initiative aims to reduce road fatalities by 30 percent, improve traffic and incident management systems, and make travel safer for road users.
The corridor links Djibouti City to the Ethiopian border through RN1, RN5 and RN19. It is strategically important for Djibouti’s economy and food security because it supports the transport of food products imported from Ethiopia, including fruits and vegetables that are widely consumed in local markets.
The corridor is also vital for Ethiopia, which depends on Djibouti’s port and logistics infrastructure for access to international trade routes. Improving this corridor is therefore expected to strengthen regional trade, reduce transport delays and support economic integration between the two countries.
Climate resilience is a major focus of the project. According to the Global Center on Adaptation, more than 75 percent of the corridor could be exposed to extreme heat waves by 2050 without adaptation measures. Flood risks are also already affecting some sections of the route, making climate-resilient upgrades essential for long-term sustainability.
The World Bank expects the project to reduce travel times along the corridor and shorten truck border clearance times at the Guelileh border crossing by 2033. These improvements could lower transport costs, improve logistics efficiency and make cross-border trade more reliable.
The programme will also rehabilitate 70 kilometres of roads using standards that incorporate climate resilience. More than 250,000 people are expected to benefit from improved access to safer and more resilient road infrastructure.
Overall, the USD 45 million grant will help Djibouti strengthen a critical economic corridor that supports trade, food supply, regional connectivity and climate adaptation. By improving road safety, reducing transport delays and protecting infrastructure from climate risks, the project aims to create long-term benefits for both Djibouti and the wider region.
