African Development Bank approves $76 million to boost Somalia’s transport connectivity

AfDB approves $76.37 million in additional financing to boost Somalia’s road corridors, cross-border trade

Sunday December 14, 2025

The African Development Bank (AfDB) Group has approved $76.37 million in additional financing for Somalia’s Road Infrastructure Program, strengthening a key segment of the Horn of Africa corridor linking Somalia with Ethiopia and Djibouti and aimed at accelerating regional trade and integration.

In a statement issued Thursday, the bank said the program is designed to “stimulate cross-border trade, strengthen regional integration, and reduce fragility within the region.” The new financing package comprises $49.16 million from the African Development Fund, the AfDB’s concessional window, and $27.21 million from the Transition Support Facility, which backs African countries experiencing fragility and conflict.

The support expands ongoing road works and trade facilitation measures that underpin the corridor’s development, a priority for governments and development partners seeking to open reliable, safer routes between markets and ports across the Horn. The AfDB said the funds will help streamline customs and lower the cost and time of moving goods, while deepening collaboration among border agencies.

According to the bank, core interventions include establishing a simplified trade regime between Somalia and Ethiopia tailored to small-scale operators—often women and youth running micro and small enterprises—and expanding Somalia’s automated customs system to modernize and harmonize procedures. The package also prioritizes institutional capacity building in customs and trade management to embed reforms and improve service delivery.

Mike Salawou, the AfDB’s director of infrastructure and urban development, said the request for additional financing reflects an expanded scope and ambition for the program as designs improved and new components were added.

“The program has evolved from minimal interventions to full road upgrades, enabled by improved designs and the integration of new components, including bridges, additional road sections, and trade facilitation measures, as well as social infrastructure to maximize benefits for the local community,” Salawou said.

By reinforcing critical transport links and easing border formalities, the initiative seeks to unlock trade potential across the Somalia–Ethiopia–Djibouti axis. The corridor approach is intended to connect producers to markets more efficiently, reduce the barriers faced by small traders at border posts, and improve the predictability of supply chains—key steps for boosting commerce, enhancing food security through steadier flows, and creating jobs in logistics and services.

The Transition Support Facility allocation underscores the program’s focus on stability and inclusion. In fragile settings, upgraded roads paired with predictable, transparent border processes can lower informal costs, reduce risks along trade routes, and encourage formalization—outcomes that depend on institutional strengthening as much as on physical works. The AfDB said the package will support both, combining construction and upgrades with training and systems modernization inside customs and trade authorities.

The announcement builds on previous AfDB-backed investments in Somali transport infrastructure and complements broader regional efforts to harmonize standards and procedures along priority corridors in the Horn of Africa. While project timelines and specific road sections were not detailed in Thursday’s statement, the bank emphasized that the expanded scope is geared toward delivering fully upgraded links and integrated facilitation measures rather than isolated works.

With the approval, Somalia’s road program enters a new phase focused on accelerating upgrades and translating them into tangible benefits for border communities and businesses. The AfDB said next steps include advancing construction and operationalizing trade and customs reforms to ensure goods and people can move more quickly, safely and affordably across borders.

By Ali Musa
Axadle Times international–Monitoring.