Ethiopia has approved a USD 738.2 million loan to South Sudan for constructing a 220-kilometer road linking the two countries. The road will connect South Sudan’s Paloch, Maiwut, and Pagak areas with Ethiopia’s border regions, fostering regional integration.
Ethiopian contractors will handle the construction. The loan comes with a 10-year repayment plan, including a five-year grace period. South Sudan will repay in cash and crude oil, transported via Port Sudan.
The agreement, initially signed in May 2023, was ratified by South Sudan’s National Legislative Assembly in June 2024. The project aims to improve South Sudan’s trade routes, especially for oil exports, while reducing dependence on distant ports like Mombasa.
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