Washington, June 18, 2026 - The World Bank Group has approved US$45 million in additional financing (grant) for the Horn of Africa Initiative: Djibouti Regional Economic Corridor Project. The support will help strengthen regional connectivity, enhance logistics efficiency, and improve road safety along the Djibouti-Addis Southern Corridor.
This support builds on the original US$70 million project approved in December 2021 and a US$90 million in additional financing approved in September 2024, bringing total World Bank financing for the project to US$205 million.
The new financing builds on lessons learned from the parent project, particularly the need to improve road safety. It will finance the widening of high-risk sections of National Road 1 between Arta and Doudoubala to a dual carriageway with median separation, alongside targeted safety measures in selected areas. It will also strengthen drainage systems, pavement structures, and climate resilience to withstand extreme heat and intense rainfall.
The operation introduces a new component focused on safe access and road safety management. It will support stronger institutions, enhanced speed management and enforcement, and improved vehicle safety regulations.
The financing further aims to increase the corridor's local development impact, particularly for women. It will support gender-responsive roadside rest areas and marketplaces, with at least half of stalls allocated to women, alongside targeted business advisory services. The project is expected to create 550 jobs."This new financing reflects the World Bank Group's commitment to strengthening the safety, resilience, and performance of one of the region's most strategic transport corridors," said Fatou Fall, World Bank Group joint Resident Representative for Djibouti. "By combining safer infrastructure, stronger institutions, and local economic opportunities, the project will improve connectivity while benefiting communities along the corridor."
"The Djibouti-Addis Corridor is not merely a road; it is a strategic economic corridor that underpins regional integration, trade resilience, and shared prosperity," stated Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry. "This financing will help transform a critical trade artery into a modern, efficient, and sustainable logistics corridor, reinforcing Djibouti's ambition to serve as the premier gateway and logistics platform for the Horn of Africa and beyond."
By 2033, the project is expected to reduce travel time along the corridor, cut truck border-crossing time at Guelileh, provide access to more resilient roads for more than 250,000 people, and reduce road traffic fatalities by 30 percent. It will also rehabilitate 70 kilometers of roads to climate-resilient standards and expand real-time traffic and incident management systems.
