The African Development Bank (AfDB) has approved a $98-million financial package for Ethiopia for a road transport corridor project to neighbouring Djibouti, it said late on Tuesday.
The project's total cost is $255-million, comprising an AfDB grant of $98-million to Ethiopia's government and an AfDB grant of $5.3-million to Djibouti's government, plus a co-financing contribution of $151-million by Ethiopia's government.
"The project will enhance trade by significantly reducing transport costs, thereby accelerating the economic growth of Ethiopia and its neighbour Djibouti, as it is part of the main import-export corridor," the AfDB said in a statement.