AfDB gives loan to Ethiopia

Bank provides project finance for road project to stimulate intra-regional trade.

The African Development Bank (AfDB) has agreed a US$125.6mn loan to Ethiopia to finance the Mombasa-Nairobi-Addis Ababa Road Corridor Project Phase II.

The multinational road project involves upgrading the Ageremariam-Yabelo-Mega road section, building roadside socio-economic infrastructure, constructing a border post at Moyale and drilling 12 community water wells within the project area.

On completion, the project is expected to reduce transport and shipping costs between Kenya and Ethiopia and reduce transit time for imports and exports, as well promote increased intra-regional trade in East Africa and the Horn of Africa.