Ethiopia and China have signed a $15 million grant agreement to support the Ethio-Djibouti railway, a strategic transport corridor connecting Ethiopia's capital to the port of Djibouti. The agreement, signed on November 4, 2026, in Addis Ababa, will provide spare parts, maintenance equipment, and technical assistance. This move aims to strengthen the reliability of the railway, which began commercial operations in January 2018.
The grant will specifically provide mechanical and electrical spare parts for electric locomotives, specialized track components, and station-yard accessories. Additionally, it will finance machinery for routine railway inspection and maintenance, as well as technical assistance from Chinese experts. These experts are expected to train railway staff, provide practical maintenance guidance, and help strengthen local technical capacity.
Ethiopia's State Minister of Finance, Tiguist Fisseha, and Liu Xiaoguang, Minister Counsellor at the Chinese Embassy in Ethiopia, signed the agreement on behalf of their respective governments. This support is intended to improve the railway's operational reliability and maintenance, particularly by ensuring the availability of essential components for locomotives and track infrastructure.
The Ethio-Djibouti railway is a major transport link for Ethiopia, connecting the landlocked country to the port of Djibouti, its principal maritime gateway. In May 2024, Ethiopia and Djibouti took over management of the railway from the Chinese company that had operated it during its initial years. Strengthening local maintenance expertise and ensuring the availability of spare parts are crucial to sustaining operations under local management.
This agreement adds to broader Ethiopia-China cooperation in railway infrastructure and technical capacity building. In December 2025, the Ethio-Djibouti Railway and China Civil Engineering Construction Corporation signed a five-year technical consultancy agreement to support railway operations and develop local expertise. The two governments also reaffirmed their commitment to cooperation in various areas, including agricultural technical assistance and green development.
The latest agreement is expected to support the corridor's sustainable and efficient operation. Both sides pledged to coordinate the implementation of the supplementary railway project. This cooperation aims to enhance the performance of the Ethio-Djibouti railway, which is critical for Ethiopia's freight transport and regional connectivity.
The grant from China will have a significant impact on the reliability and efficiency of the Ethio-Djibouti railway. With improved maintenance and spare parts availability, the railway can continue to play a vital role in Ethiopia's transportation network, supporting the country's economic growth and regional trade.
Key points
- China grants $15 million to Ethiopia for Ethio-Djibouti railway spare parts and maintenance.
- The agreement aims to improve the railway's operational reliability and maintenance.
- The grant will support local technical capacity building and sustainable operation of the railway.
