Ethiopia extends $738m loan for South Sudan road project
November 5, 2024 (ADDIS ABABA) – Ethiopia has extended a $738 million loan to South Sudan to fund the construction of a road connecting the two countries.
The loan, which is repayable over 10 years, seeks to foster stronger economic ties and improve connectivity between Ethiopia and neigbouring South Sudan.
Repayment, the loan agreement states, will be made in both cash and crude oil.
The project involves a 220-kilometer road that will be constructed along South Sudan’s border to be undertaken by Ethiopian contractors and consultants.
A statement noted that this cross-border infrastructure development is expected to enhance trade, transportation, and regional integration in East Africa.
“This strategic partnership not only strengthens diplomatic relations but also establishes a model for resource-backed financing in infrastructure projects across Africa,” it adds.
This unprecedented move reportedly underscores Ethiopia’s commitment to supporting the stability and development of neighboring South Sudan, marking a new chapter in the region’s efforts toward sustainable growth and cooperation.
(ST)