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Djibouti has launched a US$600mn rail project that will link the country to Ethiopia and South Sudan
The rail link will pass through the Dire Dawa region and Addis Ababa in Ethiopia and will be expected to be a major boost to transport and business activity in East Africa.
The Djibouti government said that the two East African countries had earlier established a Joint Djibouti-Ethiopia Coordination Commission for the railway project.
The rail project will be undertaken by China Civil Engineering Construction Corporation (CCECC) and financed by the China EXIM Bank.
Djibouti’s transport minister Moussa Ahmed recently formed a committee to supervise the project, which will be expected to be completed within two years.
Ahmed said that the railway line will facilitate access to different markets in the region and will also link Djibouti to South Sudan through Ethiopia.
Meanwhile, Ethiopia’s transport minister Workneh Gebeyehu said that the new railway line will change the socio-economic conditions of the countries involved by generating jobs for youths.
Gebeyehu said that the government of Djibouti will ensure the project’s completion within the time frame for the speedy realisation of its economic benefits to the countries.