The strategic significance of Djibouti’s ports for landlocked central Ethiopia is set to be strengthened by a major new road project that has just begun.

In 2023, the World Bank approved full financing for the highly anticipated 144 km expressway connecting Mieso to Dire Dawa in eastern Ethiopia.

This project is a game-changer for the Ethio-Djibouti Transport Corridor, a key logistics route, and has been in the works for some time.

Construction will be undertaken by two Chinese companies: the China Civil Engineering Construction Corporation (CCECC), known for its major infrastructure projects in Ethiopia, and the Sichuan Road and Bridge Group, according to the Ethiopian Roads Administration.

The project will be divided into two sections: a 73 km stretch from Mieso (294 km east of Addis Ababa) to Beki, and a 71 km section from Beki to Dire Dawa, which will connect to the existing Dire Dawa-Dewale expressway leading to the Djibouti border.

Financed by a 62.4 billion birr fund from the World Bank’s International Development Association (IDA), the project is expected to be completed within 48 months.

Currently, the 144 km road between Mieso and Dire Dawa is a gravel track adjacent to the Addis Ababa-Djibouti railway line.

Its poor condition fails to accommodate the heavy truck traffic that is essential for accessing Ethiopia’s primary port in Djibouti.

As a result, many drivers are forced to take a 200 km detour via Dengego, a route through the Hararge highlands that is also unsuitable for heavy trucks.

The new Mieso-Dire Dawa expressway will significantly reduce the distance to Djibouti, with logistics experts estimating it will cut at least 146 kilometers from the journey compared to the longer Galafi-Mille alternative.

Upgrading this route to a four-lane expressway will decrease transport time, improve road safety, lower fuel and vehicle maintenance costs, and reduce pollution.

This upgrade is crucial for supporting Ethiopia’s economic growth and social development by enhancing the efficiency and capacity of this vital trade artery.

Experts emphasize that the new road will strengthen the connection between Mieso and Dire Dawa, the largest city in eastern Ethiopia and a key logistics and industrial hub, cutting the distance to the port from Addis Ababa by over 100 km.

“The project, which aligns with the railway network, will solidify Djibouti as Ethiopia’s nearest sea outlet,” they stated.

While some experts point out that the port of Assab in Eritrea is roughly 20 km closer to central Ethiopia than the route to Djibouti via Galafi, the railway linking Addis Ababa to Djibouti measures only 750 km.

An expert in cargo movement stated, “The new road from Mieso to Dire Dawa aligns with the railway line, and its upgrade will significantly shorten the effective road distance. This makes the Djibouti route the most viable option for Ethiopian truck drivers and enhances the strategic importance of Djibouti’s ports for Ethiopia.”

Ethiopia currently connects to Djibouti through three main routes: Belho, Galafi, and Dewale. Users of the Galafi route frequently express concerns about the poor condition of the road network within Djibouti, which the Djiboutian administration attributes to climate change and has pledged to improve. Over 95% of Ethiopia’s import-export trade by volume depends on the Addis-Djibouti corridor.

The World Bank reports that the project will also create opportunities for private sector involvement in operating freight truck terminals. The Addis-Djibouti Regional Economic Corridor project is a priority for international partners in the Horn of Africa, aiming to connect hinterlands to ports and markets to boost regional trade.

Another segment of the Ethiopia-Djibouti Transport Corridor Project, which includes the 125 km Adama-Awash and 72 km Awash-Mieso roads, is expected to be implemented under a different approach.

The once-thriving textile and garment sector in Ethiopia’s Tigray region, which served as a major economic backbone, has been severely devastated by the conflict in northern Ethiopia over the past two years. While the physical destruction and supply chain disruptions have been widely reported, a new study reveals that the greatest challenge facing investors and businesses attempting to rebuild is a chronic lack of capital.

The study, titled “Rebuilding Tigray’s Textile and Garment Industry: The Role of Vocational Skills Development,” documents extensive financial losses and infrastructural damage across the region’s industries. It reports that approximately 60 factories and over 6,300 small and medium-sized enterprises were destroyed during the war.

One prominent example is the Almeda Textile Factory, which before the war employed 5,300 permanent workers. Post-conflict, it has restarted operations but with a drastically reduced workforce of 1,800. Gebretsadik Gebru, a lead researcher on the study, shared with Capital that the factory’s monthly revenue plummeted from 70 million birr pre-war to just 5.5 million birr in 2024. Their production equipment and raw materials were entirely looted or destroyed, compounding recovery efforts.

The study, based on interviews with industry leaders, identifies financial constraints as the primary obstacle to business revival. The Almeda factory’s manager noted that out of 51 vehicles previously owned in Mekele, only one remains functional—the rest were damaged or stolen—forcing the company to rent transport at additional cost.

Beyond funding shortages, the war has triggered a severe skills gap. Thousands of skilled workers fled the region, forcing companies like MAA Clothing Factory to replace them with low-skill labor, thereby incurring extra expenses for training. The study emphasizes vocational skills development (VSD) programs as critical to rebuilding a capable workforce for a modern and resilient textile industry.

VSD programs would enable retraining of displaced workers and develop new talent attuned to the industry’s specific needs. However, the report highlights a disconnect between general technical and vocational education and training institutions (TVET) and the specialized requirements of the textile sector. While most TVET programs focus on trades like metalworking, Tigray’s textile industry demands specialized training on machinery such as ring frame and knitting machines.

To address these gaps, the study recommends close collaboration between TVET institutions and industry stakeholders to ensure that training matches both traditional textile skills and emerging technologies.

Gebretsadik called for coordinated actions by government, investors, and international organizations to support comprehensive recovery. He urged the creation of special economic zones and tax incentives to attract investment. Additionally, the study called for accessible low-interest loans, wage subsidies for rehired workers, and grants to support small businesses.

Crucially, there were appeals for the federal government to establish a development fund in partnership with local authorities to catalyze the sector’s revival.

Ongoing conflicts in Ethiopia over the past four years have severely impacted the operations of civil society organizations (CSOs), hindering their ability to work effectively in many regions. The country’s precarious security situation was underscored in the recently released 2025 Global Peace Index (GPI), which ranked Ethiopia 138th out of 163 countries, identifying it as one of the least conducive environments for peace and highly at risk of conflict.

One affected organization is the Beza Posterity Development Organization (BPDO), a longstanding civil society group operating in Ethiopia for 25 years. Founder and CEO Sehid Ahmed described the persistent security challenges, especially in parts of the Amhara region, as major obstacles to fulfilling their mission. “Being physically present is critical for effective project implementation and evaluation, but in conflict-affected areas such as North Wollo and West Gojjam, this is often impossible,” he explained.

The disrupted operations have also hampered efforts to monitor human rights violations. Ahmed highlighted how the lack of peace prevents CSOs from controlling abuses and noted that educational activities have suffered, with many students unable to return to school in some conflict-affected areas.

CSOs face severe constraints in contributing to peace-building and human rights oversight. The 2025 GPI report pointed out that exclusion from legitimate peace processes diminishes the impact of civil society. Furthermore, widespread mistrust from both governmental authorities and conflict parties, coupled with ongoing insecurity, limits the capacity of organizations to monitor violations and advocate effectively.

Ahmed expressed frustration with the current conditions, stating, “It remains a challenge that we do not have the environment necessary for our work to be as effective as we desire,” emphasizing that physical presence—essential for success—is frequently unattainable in volatile zones.

Beyond security challenges, budgetary constraints are crippling many CSOs, including BPDO’s sister organization, the Redemption Generation Development Organization. This group is actively seeking new funding sources amid cuts that have forced the discontinuation of some tuberculosis (TB) programs, although it continues its HIV prevention efforts in 116 districts across the Amhara region.

Founded in 2000 by a youth group in Kombolcha, Amhara region, BPDO began as an HIV/AIDS club and has since evolved into a prominent local NGO dedicated to addressing a wide range of health, socio-economic, and development issues throughout Ethiopia.

Operating under the banner “Do Your Part,” BPDO remains committed to confronting the country’s pressing challenges despite operational hurdles. The organization’s experience encapsulates the broader struggle CSOs face in Ethiopia—balancing resilience and commitment against security risks and dwindling resources.

An audit by the Federal Auditor General has revealed a critical two-decade-long gap in the implementation of Ethiopia’s environmental protection laws, raising concerns about the country’s ability to safeguard its natural resources. The report highlights significant shortcomings in the legal framework that have hindered effective enforcement and oversight since the enactment of the Environmental Impact Assessment (EIA) Proclamation No. 299/2003.

Environmental impact assessments are vital tools globally used to evaluate the potential effects of development projects on the environment and communities before work commences. Their purpose is to prevent or mitigate harm to ecosystems, public health, and local populations. However, the audit found that due to the absence of necessary supporting regulations, Ethiopia’s EIA law has failed to achieve its intended impact for 22 years.

The report points to serious deficiencies stemming from this regulatory void, including the lack of official guidance on how EIA reports should be prepared, reviewed, and evaluated. This absence of a standardized legal process has led to confusion, overlapping responsibilities, and ineffective assessments.

Public participation, a cornerstone of effective environmental oversight, is also inadequately addressed. The audit notes that there are no clear guidelines defining when and how local communities and other stakeholders should be involved in the EIA process, undermining transparency and accountability.

Furthermore, the audit highlights the absence of an official list specifying which projects require an environmental impact assessment and which do not—another significant gap impeding enforcement.

The report also criticized Ethiopia’s broader environmental policy framework, which has not been updated since 1997 despite plans for revision in 2016 EC. Additionally, the audit found that international best practices from other countries have not been sufficiently integrated into Ethiopia’s environmental governance systems.

Responding to the findings, officials from the Environmental Protection Authority (EPA) acknowledged the problems and confirmed that a new Environmental Impact Assessment bill has been drafted, approved by the Council of Ministers, and is now awaiting parliamentary approval. They also indicated that an updated list of projects requiring EIAs will be developed soon.

Nonetheless, the audit warns that without clear procedures and robust implementation mechanisms, large-scale development projects—including infrastructure and industrial ventures—may proceed without adequate environmental safeguards. This poses serious risks to Ethiopia’s fragile ecosystems, air quality, water resources, and public safety.

The report underscores the urgent need for comprehensive regulatory reforms and the establishment of effective enforcement systems to ensure Ethiopia’s environmental laws fulfill their critical role in sustainable development and natural resource protection.