Ethiopia and China Sign Grant Agreement for Supplementary Work on Ethio-Djibouti Railway

Addis Ababa, November 5, 2026 (FMC) – The governments of Ethiopia and China have signed a grant agreement for supplementary work on the Ethio-Djibouti Railway, aimed at strengthening the railway’s operational reliability, maintenance capacity and sustainable performance.

The agreement for the China-Aid Project for Supplementary Work of the Ethio-Djibouti Railway in Ethiopia was signed in Addis Ababa by State Minister of Finance Tiguist Fisseha, representing the Ethiopian Government, and Liu Xiaoguang, Minister Counsellor at the Embassy of China in Ethiopia, representing the Chinese Government.

The agreement secures a $15 million grant package providing material assistance, equipment upgrades and technical capacity-building support for the railway’s continued operation.

The support package includes essential mechanical and electrical spare parts to maintain electric locomotives, specialized track hardware and station-yard accessories to strengthen the stability of the railway’s main line.

It also provides small-scale machinery for routine track inspections and maintenance, as well as technical assistance from Chinese experts. The experts will visit Ethiopia to provide practical guidance, train railway personnel and strengthen local technical capacity.

The supplementary project is designed to improve the operational reliability of the Ethio-Djibouti standard-gauge railway and reinforce the maintenance of its infrastructure.

Beyond railway infrastructure, Ethiopia and China maintain cooperation in agricultural technical assistance, technical and vocational education and training (TVET), green development initiatives and technical surveys for future capital projects.

Both sides reaffirmed their commitment to close coordination to ensure the smooth implementation of the railway support project, further advancing their bilateral economic and development cooperation.