Ethiopia has launched a strategic road policy aimed at overhauling its trade corridors with Djibouti, South Sudan and Uganda, a move expected to cut transport costs, speed cargo movement, and strengthen the country’s regional competitiveness, Ahadu Radio reported.

The policy targets critical trade arteries, including the Addis Ababa‑Djibouti corridor, which carries more than 95 per cent of the nation’s imports and exports. By streamlining border crossings and reducing bureaucratic delays, the initiative is designed to make logistics faster, cheaper, and more predictable for exporters and importers alike.

Kedelmagist Ibrahim, spokesperson for the Ministry of Transport and Logistics, said Ethiopia has reached agreements with neighbouring countries to jointly manage corridor development. “Standardised operations and coordinated oversight will allow goods to flow efficiently across borders, while lowering the cost of trade,” he told Ahadu Radio.

The policy comes as Ethiopia and its partners secure major investment for infrastructure upgrades. The African Development Bank recently approved nearly US dollars 215 million for the South Sudan‑Ethiopia‑Djibouti corridor, with Ethiopia receiving US dollars 181.5 million to construct expressways and install modern transport management systems. In parallel, upgrades to the Addis Ababa‑Dire Dawa route under the Horn of Africa Initiative are expected to cut journey times, improve road safety, and reduce logistics expenses further.

Digital logistics initiatives are also part of the strategy. A new fleet management system on the Addis Ababa‑Djibouti route is set to track cargo, reduce border delays, and provide traders with transparent cost structures, helping businesses plan and price more effectively.