Ethiopia and China have signed a $15 million grant agreement to supply spare parts, maintenance equipment and technical assistance for the Ethio-Djibouti railway, as Ethiopia seeks to strengthen the reliability of the strategic transport corridor.
The agreement, signed in Addis Ababa on November 4, 2026, will provide mechanical and electrical spare parts for electric locomotives, specialized track components and station-yard accessories, alongside machinery for routine railway inspection and maintenance.
Ethiopia’s State Minister of Finance, Tiguist Fisseha, signed the agreement on behalf of the Ethiopian government, while Liu Xiaoguang, Minister Counsellor at the Chinese Embassy in Ethiopia, signed for China.
The grant will also finance technical assistance from Chinese experts, who are expected to train railway staff, provide practical maintenance guidance and help strengthen local technical capacity.
The support is intended to improve the railway’s operational reliability and maintenance, particularly by ensuring the availability of essential components for locomotives and track infrastructure.
The Ethio-Djibouti railway is a major transport link connecting Ethiopia’s capital with the port of Djibouti, the country’s principal maritime gateway. The electrified standard-gauge line began commercial operations in January 2018 and is a key part of Ethiopia’s efforts to improve freight transport and regional connectivity.
In May 2024, Ethiopia and Djibouti took over management of the railway from the Chinese company that had operated it during its initial years. Strengthening local maintenance expertise and ensuring the availability of spare parts are therefore important to sustaining operations under local management.
The latest agreement adds to broader Ethiopia-China cooperation in railway infrastructure and technical capacity building. In December 2025, the Ethio-Djibouti Railway and China Civil Engineering Construction Corporation signed a five-year technical consultancy agreement intended to support railway operations and develop local expertise.
The two governments also reaffirmed their commitment to cooperation in agricultural technical assistance, technical and vocational education and training, green development and technical studies for future capital projects.
Both sides pledged to coordinate the implementation of the supplementary railway project to support the corridor’s sustainable and efficient operation.