The Djibouti Damerjog Industrial Development Free Trade Zone (DDID FTZ) receives an injection of financial boost in the form of another accelerating fund for its multiple development projects to which also Ethiopia has eyes on investing.
The lucrative venture that is led by Djibouti’s Great Horn Investment Holding (GHIH), and newly formed Djiboutian sovereign wealth fund (SWF), has secured USD 120 million in financing from the continental trade and project financing body, the African Export-Import Bank (Afreximbank) for projects being undertaken around Damerjog area, the southern outskirt of the capital Djibouti for Damerjog Liquid Bulk Port’s (DLBP) related projects, which is part of the wider USD 4 billion project of DDID.
As the statement of the continental bank which has its based in Cairo, Egypt disclosed, the agreement came to fruition following the meeting between Afreximbank’s President, Benedict Oramah (Prof) and Ismail Omar Guelleh, President of Djibouti, at the heads of state of the African Union summit held in Nairobi.
The deal, which is Afreximbank’s first in Djibouti in collaboration with GHIH and the government, is targeted at supporting the development of a trade-enabling infrastructure to assist Djibouti in achieving its plan to become a regional trans-shipment and logistics hub.
As the document further details, the financing is part of a total facility amount of USD 155 million for work on the free trade zone.
According to the statement, the balance, USD 35 million is being financed through Banque pour le Commerce etl’IndustrieMer Rouge (BCIMR) of Djibouti.
Proceeds of the facility will be used for the completion of the Damerjog Oil Jetty, which will provide marine connectivity to the free trade zone, and for the construction of a 150,000 cubic meter first storage depot as well as for other costs related to the projects.
The project is stated as a promotive agent to intra-African trade, given that Djibouti’s economy is largely based on the provision of marine services to neighboring nations Ethiopia and Somalia, by offering them a gateway for ocean-borne freight.
As Prof. Oramah indicates, the establishment of a jetty and bulk port in the Djibouti Free Trade Zone will add significant value to Djibouti’s role as a trans-shipment hub for neighboring landlocked countries.
Commenting on the transaction, GHIH’s Chairman Aboubaker Omar Hadi stated, “We are very proud of our collaboration with Afreximbank, a dynamic African multilateral and transaction driven institution, and the continuous valuable technical support of the EPC SOMAGEC.
The DLBP project which is officially being constructed by SOMAGEC, a Moroccan firm specializing in the construction of port infrastructure, will consume USD 350 million.
Regarding the project, Omar Hadi, recently told Capital that the new facility will be able to accommodate Ethiopia’s demand for the coming years as its new facility is colossal in comparison to the Horizon Djibouti Terminal (HDT) which was established in 2003 with operations being commenced in 2005 with a capacity of 4.5 million tons per annum.
“The concepts are not even similar as the oldest oil terminal is operating in a single jetty and one terminal, whilst the new one will have different terminals, while using one jetty. Regarding capacity, the new one will have 13 million tons,” the Chairman explained.
The DLBP structure consists of an offshore jetty that is connected to onshore storage facilities. This will serve multiple end users, enabling them to load and unload a wide variety of products to and from inland storage facilities. The jetty is located around 3km from land, with a causeway that provides access for vehicles and pipeline services. It is designed for the berthing of two ships – one capable of accommodating vessels of up to 100,000 DWT and the second for vessels up to 30,000 DWT.
DDID FTZ will be Djibouti’s first heavy industrial and petrochemical base, and East Africa’s only industrial complex with a road-port-air-railway network. The new liquid bulk port will enable Djibouti to become a leading oil product trading hub for East Africa’s petrochemical sector.
The entire DDID FTZ project which is scheduled to be built in different phases in ten years time, also includes a multipurpose port, a liquefied natural gas terminal, a livestock terminal, dry docks and a ship repair yard, a power plant and a factory that will produce construction materials. The development of the complex will help Djibouti to better meet the region’s hydrocarbon needs-especially for landlocked Ethiopia.
The oil port project is financed by different foreign sources.
The Ethiopian SWF, Ethiopian Investment Holding (EIH), is also interested to take stake on the infrastructure.
Founding and former CEO of EIH Mamo Mihretu, recently told Capital that the investment holding has primary focus areas to which the logistics sector is among the priority list, “It is vital to boost regional integration with neighboring countries including Djibouti.”
“We also have an objective of insuring Ethiopia’s energy sector. Cognizant of this, we are exploring the potential of co-investing in the oil terminal in Djibouti,” the former CEO said, adding, “We are in advanced conversations with the Djibouti Port Authority.”

The World Bank approves USD 730 million for a 142km expressway road from Mieso to Dire Dawa with the project envisioned to commence in the second half of the current budget year.
The World Bank in its issued statement on Thursday highlighted that it had approved the finance through the International Development Association (IDA) for the acceleration of the logistics sector.
The project is part of the Addis Ababa Djibouti express way project of which in part; the Addis Adama and Dire Dawa Djibouti project have already been accomplished.
The remaining section that stretches from Adama to Dire Dawa is however yet to be utilized.
The latest fund approval from the international financier will allow part of the project to come to fruition soon.
According to the information that Capital obtained from the Ethiopian Roads Administration (ERA), since the approval from the World Bank has been made, the bidding process is set to follow suit soon.
“Most probably the process will be accomplished in the coming few months and the project will commence by the second half of the 2023/24 budget year,” sources at ERA told Capital.
The 142km gravel road is adjacent to the Addis Ababa Djibouti railway line, but its conditions are poor to manage the trucks that transport to the major port destination of Ethiopia, Djibouti.
Owing to this reality, drivers who use the Djibouti-Dire Dawa line take the road via Dengego, which is about 200km while most of the road system passes through Hararge highlands which are not suitable for heavy trucks.
The Dire Dawa-Dewale 220km toll road that is part of the highway stretching to Djibouti city has attracted drivers to take this side of the road due to the alternative Djibouti Galafi road mainly in Djibouti which is not in good condition.
If the road system from Mieso to Dire Dewa that passes through Hurso is to be completed, it will shorten the distance taken to Djibouti.
According to the World Bank statement, the project aims to upgrade the road to Djibouti, including the Mieso-Dire Dawa section, which is currently in dwindling conditions and unsuitable for the growing truck traffic market, “This section forces road users to take a longer route through Mille, adding 146 kilometers to their journey.”
Upgrading the Mieso-Dire Dawa section to a four-lane expressway will reduce transport time, enhance road safety, save fuel and maintenance costs, and reduce pollution.
This upgrade is crucial for Ethiopia’s economic growth and social development, as it will improve the efficiency and capacity of this crucial trade route.
From the total USD 730 million, the design and construction of the Mieso–Dire Dawa section of the Addis–Djibouti corridor is said to consume USD 656 million while the remaining amount will be geared towards spending on other related development activities on the project.
“Improved regional connectivity and trade are essential to unlocking Ethiopia’s economic potential,” said Ahmed Shide, Minister of Finance, backing this investment, adding, “This project is important to support our commitment to fostering inclusive growth and regional integration, as we are now fully focused on sustaining the growth and reaping the peace dividends.”
Over 95% of Ethiopia’s import-export trade (by volume) uses the Addis-Djibouti corridor.
“Other project benefits include enhancing Ethiopia’s trade competitiveness by improving logistics efficiency through regulatory and institutional reforms, investments in logistics facilities, and building the government’s capacity to facilitate the modal shift to railways,” the World Bank statement added.
The project will also provide opportunities for private sector participation in operating freight truck terminals.
“This is a transformative initiative for Ethiopia and the Horn of Africa region. It will improve connectivity, enhance trade volumes, create job opportunities, and improve access to basic services with a greater flow of goods and people across the Horn,” said Ousmane Dione, World Bank Group Country Director for Eritrea, Ethiopia, South Sudan, and Sudan.
“The Addis-Djibouti Regional Economic Corridor project is one of the priority operations that we are supporting in the Horn to help connect hinterland to ports and markets, and to increase opportunities for regional trade. It’s expected outcomes extend beyond economic growth and social development in Ethiopia, as it will enhance regional integration and generate spillover benefits for the entire region,” said Boutheina Guermazi, World Bank Director for Regional Integration for Africa and the Middle East.
The other section of Ethiopia –Djibouti Transport Corridor Project; Adama-Awash and Awash-Mieso that have 125km and 72km respectively is yet to secure financing, while the Ministry of Finance has placed the two lots to be constructed on a public private partnership modality as an alternative.
The Addis-Djibouti corridor is the transport artery for imports and exports, reaching 16.5 million tons per year.

Ethiopian Youth Entrepreneurs Association (EYEA) and Commercial Bank of Ethiopia (CBE) pen a Memorandum of Understanding (MoU) at the seventh round of Zelela, a policy advocacy and networking platform.
The seventh round of Zelela, themed “From Innovative Ideas to Commercialization” was held on July 15, 2023, at CBE’s headquarters, with the aim of unlocking financial constraints of young entrepreneurs through innovative and tailored products.

Pursuant to the agreement, EYEA will focus on due diligence data of member entrepreneurs while CBE will avail loans and other banking facilities based on the data. The commercial bank is also said to provide the necessary facilitation to finance the EYEA-certified member entrepreneurs, subject to such terms as may be specified by the CBE.
According to the statement provided by EYEA, the parties will work on a mutual basis on various initiatives for EYEA’s member entrepreneurs as may be agreed between the parties from time to time.

Nearly 70 Ethiopian teenagers aged 10-17 have successfully completed the Coding School in Addis Ababa, delivered by ThinkYoung and Boeing. The program empowers Ethiopian youth with advanced digital skills, creating new opportunities for their future careers. The annual Coding School is an important enabler in achieving Ethiopia’s goal of equipping 70% of its population with essential digital skills.
As part of the program, ThinkYoung and Boeing connected the students with tech industry and aviation professionals and trained participants in programming, robotics and drone technologies.
Fikir Gedion, 11-year old alumnus of the Coding School in Ethiopia, shared his experience: “The program has enabled me to gain a better understanding and practical knowledge of programming, robotics and drones. I had a lot of fun and would like to continue learning coding”.

“We were thrilled to partner with Boeing for the 20th edition of ThinkYoung Coding School,” said Andrea Gerosa, Founder of ThinkYoung. “Combined, our joint programs have empowered over 1400+ teenagers globally. Our collaboration continues to grow.”
Kuljit Ghata-Aura, Boeing President in the Middle East, Türkiye, and Africa, said: “Boeing is committed to supporting Ethiopia’s journey in building a robust STEM education ecosystem. Together with our partners, we can unlock Ethiopia’s true potential and solidify its current leadership position, while strengthening the African aviation industry for future generations.”
In Africa, the Coding Schools have expanded to Ethiopia, Kenya and Rwanda. To date, approximately 600 students have participated in the program in Africa, with around 200 of them in 2023.

By design, more than 60% of participants of the Coding School are girls. By breaking stigmas, the program provides them with role models, early exposure to computer science, and a supportive environment.
Boeing has partnered with over 40 organizations and invested more than $22 million since 2006 to drive systemic improvements in education and economic transformation in Africa. In Ethiopia, Boeing’s community projects prioritize STEM education, women’s empowerment, and the establishment of a talent pipeline of aviation professionals in collaboration with the government, Ethiopian Airlines, ThinkYoung, Addis Ababa University Institute of Technology and others.