The World Bank’s Board of Directors has approved US$90 million in additional financing for the Horn of Africa Initiative: Djibouti Regional Economic Corridor project. The new support will expand the scope of the US$70 million original project, approved in December 2021, to enhance regional connectivity and resilience, logistics efficiency, and improve accessibility for the population living in Djibouti along the Djibouti-Addis Southern corridor.
The project is part of a broader initiative for regional integration in the Horn of Africa, encompassing Djibouti, Eritrea, Ethiopia, Kenya, and Somalia. Launched in 2019, the Horn of Africa Initiative aims to deepen regional integration and foster closer economic ties.
The new financing will support the rehabilitation, improvement, management, and maintenance of three sections of the Southern Corridor Road. It will also finance activities aimed at supporting transit facilitation to bolster regional integration and provide technical assistance to the Government of Djibouti.
“This additional financing will help Djibouti to further strengthen its position as a regional trade hub and improve the lives of its people,” said Ousmane Dione, the World Bank Vice President for the Middle East and North Africa. “The project will also contribute to the country’s efforts to achieve its Vision 2035, which aims to diversify the economy and enhance social inclusion.”
Djibouti's strategic location at the crossroads of regional trade and connectivity has seen its importance grow significantly over the past decade. Bordering several key maritime routes including the Red Sea and Indian Ocean, this corridor is crucial for regional goods movement due to Djibouti's port facilities.
“We are determined to lead the way. Therefore, we will continue to invest in infrastructure," said Ilyas Moussa Dawaleh, Djibouti’s Minister of Economy and Finance in charge of Industry. "I am thankful to our partners, especially the World Bank for supporting regional and continental connectivity.”
The World Bank’s portfolio in Djibouti consists of 19 projects worth a total of US$401.3 million. The portfolio focuses on education, health, social safety nets, energy development (both rural and urban), modernizing public administration processes, digital development initiatives, strengthening governance structures, infrastructure enhancement projects as well as private sector development with an emphasis on women and youth.