Ethiopia-South Sudan Road Opens up Trade Route

Ethiopia Prime Minister Hailemariam Desalegn and South Sudan President Salva Kiir (PHOTO: Juba Eye)

The construction of the two roads was agreed at a more general meeting between Ethiopian Prime Minister Hailemariam Desalegn and South Sudan’s President Salva Kiir.

By Neil Ford (African Business) |

The roads will provide access for South Sudan to the Port of Djibouti and allow it to export oil or fuel by tanker to Ethiopia. One road will run from Boma, in central South Sudan, through Bor and Dima to Raad, in southern Ethiopia. The other, more northerly road will connect Pagak, in western Ethiopia, to Gamebella and Palouge, in northern South Sudan.

The construction of the two roads was agreed at a more general meeting between Ethiopian Prime Minister Hailemariam Desalegn and South Sudan’s President Salva Kiir on 24 February. It has been reported in South Sudan that work has already been completed on sections of the two roads inside Ethiopia, which could also be used to bring food aid into the country.

Given its economic and security difficulties, it seems unlikely that Juba will be able to finance the two projects. It could rely on international support but Hailemariam Desalegn has suggested that Ethiopia could fund the work. Following his meeting with Salva Kiir, he said: “When they get the peace back and the economy gets stronger, they will pay us back.”

Landlocked South Sudan is still closely tied to rump Sudan in terms of its links with the rest of the world. It relies on an oil export pipeline through Sudan to Port Sudan as its only export route, paying high transit fees to Khartoum for the privilege.

READ: Ethiopia: PM Hailemariam Desalegn Meets UK’s Foreign Secretary Boris Johnson

Salva Kiir’s government hopes to oversee the construction of a new pipeline to the planned new Kenyan port of Lamu but a final agreement on the project has not yet been secured. Financing is difficult at a time of low oil prices, while South Sudan’s ongoing civil conflict raises security problems.

Juba is also keen to oversee the construction of a new highway to the Kenyan coast to encourage broader trade with the rest of the world. The South Sudanese and Kenyan governments have agreed that his road should run to Lamu.

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