Djibouti-Ethiopia Corridor Governance and Coordination
Implementation Partners
The Governments of Djibouti and Ethiopia, corridor transport and trade agencies, customs authorities, private-sector logistics associations and other public and private stakeholders supporting trade facilitation and corridor governance along the Djibouti-Ethiopia Corridor.
Implementation Period
January 2022 - March 2026
Project Participants
Government of Ethiopia and Government of Djibouti through: Ministry of Transport and Logistics (MoTL); Ethiopian Maritime Authority (EMA); Ministry of Trade and Regional Integration (MoTRI); Ministry of Foreign Affairs (Ethiopia); Ministry of Infrastructure and Equipment (Djibouti); customs and border management agencies; Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA); Ethio Logistics Sector Association (ELSA); Ethiopian Shipping and Logistics (ESL); Ethio-Djibouti Railway S.C.; and other public and private-sector stakeholders engaged in trade facilitation, transport and logistics along the corridor.
Funding Partner
European Union (EU)
Project Rationale
The Djibouti–Ethiopia Corridor is a major trade route in the Horn of Africa and the principal gateway for Ethiopia’s international trade. Effective corridor governance is important for strengthening coordination, addressing operational bottlenecks, improving logistics performance and supporting regional economic integration. The project supports efforts by Djibouti and Ethiopia to establish a formal corridor governance framework. This is intended to strengthen cross-border coordination, facilitate joint planning, support the identification and resolution of corridor bottlenecks, and provide a sustainable platform for cooperation among public- and private-sector stakeholders. The initiative is also aligned with broader regional integration objectives under the African Continental Free Trade Area (AfCFTA), the Common Market for Eastern and Southern Africa (COMESA) and the Intergovernmental Authority on Development (IGAD).
Implementation Strategy
The project supports Djibouti and Ethiopia to move from ad hoc corridor coordination towards a structured governance model that enables joint planning, coordinated problem-solving and more effective trade facilitation. By strengthening institutional
collaboration, supporting public-private engagement and establishing the foundations for a formal corridor authority, the intervention is creating a sustainable mechanism for improving corridor performance, reducing trade bottlenecks and advancing regional integration objectives.
Progress
- The DESSU Multilateral Corridor Agreement was signed on 15-16 February 2026, establishing the legal foundation for a joint Corridor Management Authority and trade facilitation cooperation among participating corridor countries.
- Joint coordination structures have been developed to strengthen engagement between public institutions and private-sector stakeholders on transport, logistics and trade facilitation challenges affecting the corridor.
- Preparatory work for operationalisation has been completed, including governance arrangements, implementation planning, institutional frameworks and resource mobilisation proposals.
- Full operationalisation remains dependent on finalisation of Secretariat arrangements, institutional establishment processes and implementation protocols.
