AfDB Approves Additional Funding to Boost Road Infrastructure and Trade in Somalia

 

AfDB Approves Additional Funding to Boost Road Infrastructure and Trade in Somalia

The African Development Bank (AfDB) Group has approved USD 76.37 million in additional financing to support ongoing road infrastructure development in Somalia, marking a significant step toward strengthening regional connectivity in the Horn of Africa.

This funding is part of the broader Horn of Africa Corridor Project, which aims to improve transport links between Somalia, Ethiopia, and Djibouti, enhancing trade flows, regional integration, and economic resilience across the region.

According to the AfDB, the program is designed to stimulate cross-border trade, reduce fragility, and support economic recovery in countries affected by conflict and instability. Improved road networks are expected to lower transport costs, ease the movement of goods and people, and open new opportunities for local and regional markets.

The financing package includes:

• USD 49.16 million from the African Development Fund, the Bank’s concessional lending arm, and

• USD 27.21 million from the Transition Support Facility, which supports countries facing fragility and conflict.

Key components of the program include the establishment of a simplified trade regime between Somalia and Ethiopia to support small-scale traders, as well as the expansion of Somalia’s automated customs system to modernize and streamline trade and customs procedures.

Mike Salawou, Director of Infrastructure and Urban Development at the AfDB, noted that the request for additional funding reflects the project’s expanded scope. What initially began as limited interventions has evolved into full-scale road upgrades, incorporating improved designs, new bridges, additional road sections, trade facilitation measures, and complementary social infrastructure.

The initiative is expected to deliver long-term benefits for local communities by improving access to markets, supporting livelihoods, and reinforcing Somalia’s role as a key trade corridor in the Horn of Africa.