LAUNCHING JUBA-JIBOUTI GROWTH AND DEVELOPMENT CORRIDOR Ali Elmi, Dj Alemayehu Senior Associate Trans Horn Engineering

1. LAUNCHING
JUBA-JIBOUTI
GROWTHAND
DEVELOPMENT
CORRIDOR
Ali Elmi, Dj Alemayehu Senior Associate
Trans Horn Engineering

2. Context
 The imminent secession of South Sudan from the
current Sudanese state offers important opportunity for
Djibouti in the context of regional integration in the Horn
of Africa by advocating for strong regional economic
ties.
 Djibouti has the opportunity to establish itself as a key
economic, transport and infrastructure hub in the region.
 South Sudan is completely land-locked, and dependent
on the distant ports of Port Sudan and Mombasa, both
of which are problematic.

3.  To realize this opportunity, Djibouti needs to
move promptly and decisively to:
 to champion and promote the Growth and
Development Corridor in the Horn of Africa to link
with Southern Sudan

4.  Djibouti can play an effective role in promoting
peace and development in the region by
steering both the Government of South Sudan
(GoSS) and the Government of North Sudan
(GoNS) towards a healthy cooperation
 Djibouti’s role in Somalia has been
commendable

5. Background
 The political climate in the region has made
moves toward regional economic integration
more feasible.
 Countries in the region have improved their
relations with each other.
 There is considerable potential for economic
and infrastructural integration to contribute to
increased interdependency, among the
region’s countries creating jobs and extending
business opportunities.

6. Djibouti – Juba corridor
 To what extent does Djibouti facilitate corridor
development and management?
 Have corridor management institutions been
established?
 Is there a corridor action plan?

7. Role of Ports in Regional Trade
 About 80 percent of international trade in
volume terms is currently carried by sea
 Ports are the nodes through which both
regional and international trade passes
through
 The efficiency of ports can greatly influence
the level of trade and hence the development
of their hinterlands
 Inefficient ports will impose high costs to trade
and hence reduce the volume of exports and
imports for their hinterlands

8. Context
 The lack of interconnected cross-border
infrastructure has significant economic costs.
 Lack of connectivity often makes trade and
commerce uncompetitive due to high transport
and service costs.

9.  It may also lead to
 unreliable supply chains,
 delayed deliveries, and
 a host of other constraints that contribute to low
productivity
 high transaction costs and diminished
competitiveness.
 The potentially rewarding development of
natural resources is often unprofitable due to
lack of suitable infrastructural and trade links.

10.  Certainly, its economic fragmentation is not
the only cause of the region’s poverty, but it is
part of the cause, and one that needs to be
addressed.
 Limited access to transport and
communications, to energy and water,
constrains economic growth. These are all key
constraints seriously impacting in varying
degree on the economy of each of the IGAD
states.

11.  However, there is also considerable potential
to address these constraints in the context of
infrastructure-led regional economic
integration.
 This would be of particular importance to
Ethiopia as a land-locked country, as well as
to Ethiopia’s western and eastern neighbours,
especially South Sudan and Djibouti, who
would directly benefit from it. It would also be
consonant with the AU-NEPAD Action Plan on
Infrastructure.

12. COMESA October 2009
 The Ministers of Infrastructure in the COMESA
region underscored the importance of
enhanced regional connectivity through the
development of adequate and efficient
physical infrastructure in Transport, ICT and
Energy;
 Agreed on implementation of infrastructure
projects and related transit transport
facilitation on the basis of clustering of
countries along the regional corridors;
 Member States in the cluster agree on the

13. Why now?
 There is growing awareness, within Africa and
among Africa’s development partners, of the
importance of regional integration to providing
Africa’s relatively small and isolated economies
with a platform for enhanced growth and
stability.

14. Donors Initiatives:
 ADB’s agenda for Eastern Africa regional
integration is to create a well connected,
economically prosperous and peaceful Eastern
Africa
 Soliciting projects ideas and committed to
finance
 Over the decade (2000-2009), economic growth
has been strong in the region, with regional real
GDP growth averaging 6.6% annually

15. EU Horn of Africa Initiative
 2006: EC adopted an integrated regional response
strategy for ‘EU political partnership forpeace, security
and development in the Horn of Africa’;
 The aim: To have a coherent and overall EU approach
to the Horn of Africa and engage the Horn countries in
cooperation that facilitates peace and security;
 April 2007: Implementation of the strategy launched
jointly by the seven governments in IGAD region and EC
Commissioner Louis Michel; followed up by assessment
missions (2007 and 2009)
Source: EU Document

16. Ports in Horn of Africa
 The region is bestowed with eight major ports
locate in four countries namely:
 Po rt Sudan in Sudan;
 MassawaandAssabinEritrea;
 Po rt Djibo uti in Djibouti,
 Berbera, Bossaso,
 Mo g adishu and Kism ayu in Somalia.

17.  All theports in the region are located on the
Red Sea except for the two ports of
Mogadishu and Kismayu in Somalia which are
on the Indian Ocean.
 The Port of Mombasa currently serves
Southern Sudan

18. Ports and Shipping in the Horn
 Transpo rt infrastructure is almost exclusively
dominated by the activities at the Port of
Djibouti, which has 16 berths and is geared
towards international traffic, particularly to
Ethiopia.
 The port has benefited from a modernization
program of its infrastructure and equipment,
which has placed it at a distinct advantage
over other ports in the subregion.
 The country's road network covers a total of
2,905 kms.

19. Trans Horn Engineering
 The Vision
 To undertake in view of enhancing the valuable
contributions of the newly emerging trade
opportunities across the Horn of Africa by
establishing integrated logistics support facilities
in playing catalytic role in regional integration.

20. Advocacy
 Promotion of Corridor Management Approach
 Cooperation in capacity building
 Exchange of information to combat
undesirable practices in order to enhance
safety and security of life, vessels and cargo
 Eestablish links at the highest level with the
Government of South Sudan (GoSS) and
position itself to take on the role of South
Sudan’s outlet to the sea in collaboration with
the Government of Ethiopia,

21. Way Forward
 Coordination with IGAD in order to harmonise regional
transport policies and regulatory environment
 Coordination with port users including transporters and
forwarders
 Participation in setting standards and in capacity
building in the transport industry
 Safeguard the regional interests in by providing world
class services
 Establishment of Community Information Systems to
network and share information

22. Horn of Africa Roads

23. Horn of Africa Railway Network

24. Horn of Africa Energy Links [Power Pool]