Supporting WTO Trade Facilitation Agreement and AfCFTA Implementation along the Djibouti-Ethiopia Corridor
Implementation Partners
National Trade Facilitation Committees (NTFCs); customs and border-management agencies; private-sector and business associations; and regional trade facilitation stakeholders
Implementation Period
2024-2027
Project Participants
Government trade institutions, NTFCs, customs authorities, border agencies, private-sector associations and businesses engaged in cross-border trade along the Djibouti-Ethiopia Corridor.
Funding Partner
European Union
Project Rationale
The Djibouti-Ethiopia Corridor is Ethiopia’s principal gateway to international markets through the ports of Djibouti and an important trade and logistics route in the Horn of Africa. Improving trade facilitation along the corridor can reduce delays and trade costs, strengthen predictability and support economic activity in both countries.
Djibouti is advancing implementation of its commitments under the World Trade Organization Trade Facilitation Agreement (WTO TFA), while Ethiopia is pursuing WTO accession and related legal, regulatory and institutional reforms. Both countries are working to advance implementation of the African Continental Free Trade Area (AfCFTA). These frameworks support the simplification and transparency of trade procedures, improved border management and greater access to regional and continental markets. Implementation challenges remain, including institutional capacity constraints, gaps in coordination, incomplete implementation of some trade-facilitation measures, and limited awareness of AfCFTA opportunities. Strengthening National Trade Facilitation Committees, improving regulatory coordination, addressing non-tariff barriers and deepening private-sector engagement are therefore important priorities.
The project supports Djibouti’s implementation of the WTO TFA, Ethiopia’s WTO accession-related reforms and both countries’ implementation of the AfCFTA through institutional strengthening, technical assistance, policy and regulatory reform, stakeholder engagement and bilateral coordination. These interventions are intended to contribute to a more efficient, predictable and transparent trading environment along the corridor.
Priorities 2026-2027
Strengthen WTO Trade Facilitation Agreement Implementation
- Advance implementation of validated Category B and Category C WTO TFA measures.
- Support mobilisation of technical assistance and financing for priority trade-facilitation reforms identified through the CNFE Technical Assistance Mobilisation Strategy.
Consolidate National Trade Facilitation Committees
- Strengthen the operational effectiveness of NTFCs/CNFE in Djibouti and Ethiopia.
- Improve coordination between government agencies, the private sector and development partners in implementing trade-facilitation reforms.
Accelerate AfCFTA Implementation
- Expand awareness and utilisation of AfCFTA trading opportunities among businesses and trade-support institutions.
- Support implementation of AfCFTA commitments and trade-related policy reforms in both countries.
Support Ethiopia’s WTO Accession Process
- Continue technical assistance to Ethiopia’s WTO accession negotiations.
- Support completion of legislative, regulatory and institutional reforms required for accession.
Address Non-Tariff Barriers and Improve Corridor Coordination
- Advance implementation of recommendations from the NTB diagnostic study.
- Strengthen bilateral coordination mechanisms to address trade barriers and improve the movement of goods along the corridor.
Develop Trade Facilitation Digital Systems
- Advance implementation of proposed trade information systems and customs modernisation initiatives identified under the CNFE priority project portfolio.
- Strengthen digital tools that support transparency, compliance and trade-facilitation monitoring.
Mobilise Investment for Priority Reforms
- Progress priority trade-facilitation concepts toward implementation through resource mobilisation and investment-partner engagement.
- Support preparation of bankable project proposals aligned to corridor priorities and regional integration objectives.
Funding Attribution
This project is financed by the European Union under Global Gateway, through a Team Europe approach and in support of the Horn of Africa Initiative. Funding is delegated to AFD, and the project is implemented by TMA in partnership with the Governments of Djibouti and Ethiopia.
Implementation Leads
- Ministry of Trade and Tourism, Djibouti
- Ministry of Trade and Regional Integration, Ethiopia
- TradeMark Africa
Implementation Strategy
The project adopts a results-oriented corridor approach that combines technical assistance, institutional strengthening, policy reform and stakeholder engagement to support sustainable trade facilitation reforms in both Djibouti and Ethiopia.
Implementation Approach:
1. Technical Assistance and Capacity Development
Provision of specialised trade facilitation and customs expertise to support implementation of WTO TFA and AfCFTA commitments, strengthen institutional capacity and accelerate reform processes.
2. Institutional Strengthening and Governance
Strengthening and operationalising National Trade Facilitation Committees (NTFCs) to coordinate trade facilitation reforms, improve public-private dialogue and oversee implementation of national and corridor-level priorities
3. Policy and Regulatory Reform
Supporting Djibouti’s implementation of WTO TFA Category B and C provisions, including relevant notifications, implementation schedules and technical-assistance requirements; supporting Ethiopia’s WTO accession-related legal and regulatory reforms; and strengthening the alignment of national frameworks with regional and continental trade commitments.
4. Corridor Coordination and Regional Integration
Promoting bilateral cooperation between Ethiopia and Djibouti through review of trade facilitation arrangements, harmonisation of procedures, reduction of non-tariff barriers and stronger cross-border institutional collaboration.
5. Private Sector Awareness and Engagement
Building awareness of AfCFTA opportunities, WTO TFA reforms, applicable regional trade arrangements – Simplified Trade Regimes), and non-tariff barriers through training, sensitisation and outreach programmes targeting both public and private sector stakeholders.
6. Investment Pipeline Development
Developing project concepts and proposals for potential financing of future trade-facilitation interventions.
Current Progress
- The National Trade Facilitation Committee (CNFE) was revitalised and operationalised in Djibouti, supporting implementation of the WTO TFA and AfCFTA through regular coordination meetings and stakeholder engagement.
- WTO TFA categorisation and recategorisation exercises were completed in Djibouti, strengthening the basis for the implementation and notification of priority trade-facilitation provisions.
- The CNFE validated a Technical Assistance Mobilisation Strategy and five priority trade-facilitation project profiles, including initiatives supporting customs reform and the development of a Trade Information Portal.
- A national roadmap for implementing WTO TFA and AfCFTA commitments was developed and validated in Djibouti to guide trade-facilitation reforms and coordination between public- and private-sector institutions.
- Capacity-development programmes and sensitisation activities on WTO TFA, WTO accession-related reforms and AfCFTA implementation were conducted for government agencies, trade institutions and private-sector stakeholders in Djibouti and Ethiopia.
- AfCFTA awareness activities were implemented to strengthen stakeholders’ understanding of continental market opportunities and the requirements for participation in regional trade.
- An Export Potential Study was completed in Djibouti to identify priority export opportunities and inform future trade-promotion and export-development interventions.
- Ethiopia continued advancing its WTO accession process through technical and legal support, including the submission of an updated Customs Valuation Agreement checklist, revision of legislative instruments and engagement in bilateral market-access negotiations with WTO members.
- More than 200 questions from WTO members were addressed as part of Ethiopia’s accession process, while updated legislative reforms increased the total number of legal instruments prepared under the accession process to over 385.
- A diagnostic study on non-tariff barriers along the Djibouti–Ethiopia Corridor was completed, providing evidence to inform future reforms aimed at reducing trade barriers and improving corridor efficiency.
- Priority trade-facilitation concepts and proposals were prepared to support future resource mobilisation and the implementation of corridor reforms.
- Implementation of Djibouti’s WTO TFA commitments, Ethiopia’s WTO accession-related reforms and AfCFTA commitments in both countries continues through coordinated institutional strengthening, technical assistance and bilateral engagement.
