Ethiopia and China have signed a $15 million grant agreement to strengthen the operation and maintenance of the Ethio-Djibouti Railway, one of the country's most important trade and transport links. The agreement, signed in Addis Ababa on November 5, aims to improve the railway's operational efficiency, reliability and long-term sustainability.
The funding will be provided through China's foreign assistance programme and will cover essential materials, equipment upgrades and technical capacity-building, the Ethiopian News Agency reported.
The support package includes mechanical and electrical spare parts for electric locomotives, specialised railway track components and equipment for station yards. It also provides small-scale machinery for routine track inspections and maintenance. Chinese technical experts are expected to visit Ethiopia to train railway personnel and share practical maintenance expertise, Fana Media said.
The railway connects Addis Ababa with Djibouti's port, providing landlocked Ethiopia with a vital route to international maritime trade. Its reliable operation is important for the movement of goods between the Ethiopian economy and overseas markets.
The latest agreement focuses on maintaining and improving existing infrastructure rather than building a new railway line. It also reflects a shift towards strengthening local technical capacity following the transfer of railway management to Ethiopian and Djiboutian authorities in 2024.
Beyond transport infrastructure, Ethiopia and China continue to cooperate in agricultural technical assistance, vocational education, green development and technical studies for future projects.
The grant is expected to support the railway's long-term operation while helping Ethiopia strengthen its logistics infrastructure and regional trade connectivity.
