World Bank approves US$90 million additional financing for Djibouti regional economic corridor
Djibouti, Djibouti (PANA) - The World Bank’s Board of Directors has approved US$90 million in additional financing for the Horn if Africa: Djibouti Regional Economic 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 9,
Launched in 2019, the project is part of a broader initiative for regional integration in the Horn of Africa, encompassing Djibouti, Eritrea, Ethiopia, Kenya, and Somalia. 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 aiming at supporting transit facilitation to support 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, during his first visit to the country in this role. “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 the Red Sea, the Arabian Sea, the Indian Ocean, and the Gulf, the regional corridor is crucial for the movement of goods and services in the region, given Djibouti's location on the Horn of Africa and its port facilities.
“We are determined to lead the way. Therefore, we will continue to invest in the infrastructure" harvest collectively our regional development and integration,” 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.”
-0- PANA AR/MA 21Sept2024
