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Ethiopia and Somalia confirm $400m investment for strategic road project

The government of Somalia and Ethiopia have launched a US $400m road project that will link Ethiopia’s border town of Togochale to Berbera Port in Somalia.


The President, Muse Bihi Abdi of Somaliland, confirmed “the road will provide access for landlocked Ethiopia to an additional seaport and significantly boost trade between the two countries”.


The strategic road is an ambitious project that will greatly look to improve the economic outlook for Somaliland. It is understood that Somaliland exports to Ethiopia stands at an estimated $800m annually.


The 72-kilometre road is estimated to take 18 months to complete with further calls, for more investment into infrastructure development - namely the upgrade of the existing Berbera Port, including the option of constructing an all-new container port adjacent to the existing structure.


The regional deputy President of Ethiopia’s Somali Region, Mustafa Mohammed Omar, said “the Berbera-Togochale corridor was instrumental in facilitating import-export trade for Ethiopia’s growing economy”.


The funding for the project has come under some scrutiny. The Abu Dhabi Fund for Development confirmed that the two countries had signed a joint venture agreement in 2018 for the project with Dubai holding 51% of the shares.


At the Africa Road Infrastructure and Investment Congress 2019 discussions will be based around the investment of infrastructure projects across sub-Saharan Africa. To receive further information on #ARIIC2019 please contact us on peter@infrastructure-exchange.com


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