Ethiopia, China Sign Grant Agreement to Support Ethio-Djibouti Railway

Addis Ababa, November 5, 2026 (ENA)— Ethiopia and China have signed a 15 million USD  grant agreement to support supplementary works on the Ethio-Djibouti Railway, aimed at improving the railway's operational efficiency, reliability and long-term sustainability.

The agreement was signed in Addis Ababa by State Minister of Finance Tiguist Fisseha on behalf of the Ethiopian government and Minister Counsellor at the Chinese Embassy in Ethiopia, Liu Xiaoguang, representing the Chinese government.

 

The grant package, provided through the China-Aid fund, will finance critical material assistance, equipment upgrades and technical capacity-building to strengthen the operation and maintenance of the strategic rail corridor.

The support includes essential mechanical and electrical spare parts for electric locomotives, specialized track components and station-yard accessories to enhance the reliability of railway infrastructure.

It also covers small-scale machinery for routine track inspections and maintenance.

In addition, Chinese technical experts will visit Ethiopia to provide practical guidance, train railway personnel and strengthen local technical capacity.

 

The supplementary project is expected to improve the operational reliability of the Ethio-Djibouti standard gauge railway while enhancing the country's capacity to maintain the vital transport corridor.

The agreement further underscores the longstanding economic and development partnership between Ethiopia and China, which extends beyond railway infrastructure to agricultural technical assistance, technical and vocational education and training (TVET), green development initiatives and technical studies for future capital projects.

 

Both sides reaffirmed their commitment to close coordination to ensure the smooth implementation of the railway support project.