Ethiopia: Parliament Approves $738.2 Million Loan to South Sudan for Cross-Border Highway

5 November 2024
Addis Standard (Addis Ababa)

Addis Abeba — Ethiopia's House of People's Representatives has approved a $738.2 million loan to South Sudan for the construction of a major cross-border highway aimed at connecting the two countries.

The decision, made during the House's fourth regular session, formalizes a 2023 loan agreement focused on a 220-kilometer road project intended to enhance connectivity and foster economic ties across the Ethiopia-South Sudan border.

The financing agreement specifies that South Sudan, as the borrower, will repay the loan over a ten-year period, with a five-year grace period included. Ethiopia is to receive repayments either in cash or crude oil, transported to Port Sudan.

This agreement follows an initial deal signed in May 2023, when Ethiopia's State Minister of Finance, Eyob Tekalign, and South Sudan's Finance Minister, Dr. Dier Tong Ngor, formalized a contract to build the Paloch-Mathiang-Maiwut-Pagak highway.

South Sudan's National Legislative Assembly ratified the agreement in June 2024, highlighting its commitment to the infrastructure project and the expected economic benefits.

Read the original article on Addis Standard.

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