Ethiopia’s Ministry of Transport and Logistics has identified a pressing need for $500 million to enhance the nation’s railway system. This investment aims to bolster the Ethiopia-Djibouti railway, which is vital for facilitating trade for the landlocked nation by improving access to international ports.
The railway, spanning 752 kilometers and connecting the capital, Addis Ababa, to Djibouti’s port, is slated for significant upgrades. The funding will also support essential reforms in operations, legislation, and institutional structures to enhance rail safety and efficiency.
Of the $500 million investment, $300 million is allocated for developing new port connections, while $200 million is designated for the upkeep of rolling stock and procurement of spare parts. Additionally, the ministry plans to investigate potential new railway lines linking Ethiopia with Sudan, Kenya, and the Democratic Republic of Congo (DRC).
As financing opportunities become more favorable, the Ethiopian government is gearing up to invite tenders for feasibility studies on various proposed railway projects, aiming to enhance both domestic and international trade networks.
