China Pledges $15 Million for Ethiopia-Djibouti Railway
The funding will support spare parts, equipment, and technical training for the 752-kilometer electrified line linking Ethiopia to Djibouti's ports.
Updated on Nov. 9, 2026 in Transportation
China has pledged $15 million to strengthen maintenance of the Ethiopia-Djibouti railway, with the agreement signed by Ethiopia's State Minister of Finance Tiguist Fisseha and Liu Xiaoguang of the Chinese Embassy. The grant was announced in Addis Ababa under the China-Aid fund.
Why it matters
The railway connects landlocked Ethiopia to Djibouti's port facilities and handled over 95% of Ethiopia's external trade by volume, so maintenance gaps affect the country's trade flows. Local companies took over operations and maintenance on May 10, 2024, and the funding addresses spare parts shortages that the operator identified as a priority.
The $15 million pledge covers mechanical and electrical spare parts for electric locomotives, track components, and station accessories, with more than 3,000 local professionals already working on the 752-kilometer line at the end of 2023. The split between equipment and training has not been specified.
The players
Ethio-Djibouti Railway
The operator of the electrified railway linking Ethiopia and Djibouti, which identified spare parts procurement as its key maintenance priority.
Export-Import Bank of China
China's state policy bank that financed infrastructure abroad and expressed willingness to help address railway component shortages.
Tiguist Fisseha
Ethiopia's State Minister of Finance, who signed the agreement with the Chinese Embassy under the China-Aid fund.
The details
Chinese experts will travel to Ethiopia to provide technical assistance and practical training to railway personnel, while the support package includes small machinery for routine inspections and maintenance. During May 2024 discussions with the Export-Import Bank of China, railway operator Ethio-Djibouti Railway flagged spare parts procurement as its top priority, and the Chinese lender said it was willing to help address component shortages.
Timeline
May 2024: Ethio-Djibouti Railway identifies spare parts as a priority in talks with the Export-Import Bank of China.
May 10, 2024: Ethiopian and Djiboutian companies assume railway operations and maintenance responsibilities.
July 2023: The World Bank estimates the corridor handled over 95% of Ethiopia's trade.
Last week: Officials announce the $15 million grant in Addis Ababa.
Market Landscape
The Addis Ababa–Djibouti corridor has linked landlocked Ethiopia to the sea since the French-built line opened in 1917, and it still carries the bulk of the country's external trade. Chinese financing now sustains that role, extending a pattern of Chinese infrastructure lending across East Africa.
Shippers and importers relying on the Djibouti corridor may see more reliable rail service if the spare parts and training reach the line on schedule. Officials have not yet released delivery timelines, so the practical effect on freight costs and delays remains unclear.
The takeaway
Watch for delivery timelines and measurable service targets, since the pledge will matter most for the railway if it translates into fewer breakdowns and faster freight movement. Until those details are published, the funding is best read as a commitment rather than a confirmed fix.
Further reading
For more on regional logistics, see the Transportation section.
Source note: This article includes information reported by Ecofin Agency.
