World Bank adds $45m for Djibouti's regional economic corridor

On 18 June 2026 the World Bank approved $45m in additional financing, as a grant, for the Djibouti Regional Economic Corridor Project under the Horn of Africa Initiative.

The funding will accelerate expansion of the national road between Arta and Doudoubalala on the southern corridor linking Djibouti and Addis Ababa, focusing on sections with high accident rates and progressively building dual carriageways.

It builds on an original $70m project approved in December 2021 and $90m of additional financing approved in September 2024, bringing total World Bank financing for the project to $205m. The project includes roadside rest areas and marketplaces with at least half of stalls allocated to women, plus business advisory services. It is expected to create 550 jobs and, by 2033, to cut truck border-crossing time at Guelileh and reduce road traffic fatalities by 30%.