By Abdullahi Salad - Reporter
Ethiopia, 11 December 2025 - The Government of Ethiopia and the African Development Bank (AfDB) yesterday signed a financing agreement worth $184 million to fund the second phase of the Adama–Awash Expressway, a key component of Ethiopia’s strategic corridor linking Ethiopia, Djibouti, and South Sudan.
This phase will involve the construction of a 67-kilometre expressway stretching between Melka Jilo and Awash in central-eastern Ethiopia.
The new road will significantly enhance connectivity along the Addis Ababa–Adama–Awash corridor and the Port of Djibouti, through which more than 90 oer cent of Ethiopia’s seaborne trade is handled, underscoring its strategic importance.
The agreement was signed on behalf of Ethiopia by Finance Minister Ahmed Shide, while Alekis Mubiru, AfDB’s Director General for East Africa, signed on behalf of the Bank.
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Minister Shide, said the project aligns with the Horn of Africa Initiative and reflects Ethiopia’s commitment to regional stability, cooperation, and integration.
The first phase of the project involved the construction of the Addis Ababa–Adama Expressway, which spans 85 km. The road cost $612 million, financed jointly by the Governments of China and Ethiopia, and was inaugurated in 2014, significantly easing Ethiopia’s trade movements along the Djibouti corridor.
The expressway project is part of Ethiopia’s broader efforts to strengthen critical trade and logistics infrastructure.
