China grants Ethiopia $15 million for railway parts
The funds will support spare parts and technical assistance for the Ethio-Djibouti railway.
China has provided Ethiopia with a $15 million grant to supply spare parts and maintenance equipment for the Ethio-Djibouti railway. The agreement, signed in Addis Ababa on November 4, 2026, aims to enhance the reliability of this transport link. The grant will cover mechanical and electrical components for locomotives, track parts, and station accessories, along with machinery for inspection and maintenance.
Ethiopia’s State Minister of Finance, Tiguist Fisseha, and China’s Minister Counsellor Liu Xiaoguang signed the deal. The funding also includes technical assistance from Chinese experts to train railway staff and build local capacity. This support is intended to improve the railway's operational reliability and maintenance, particularly since Ethiopia and Djibouti took over management in May 2024.
The Ethio-Djibouti railway, which began operations in January 2018, is Ethiopia's main gateway to the sea. This grant builds on previous cooperation, including a five-year technical consultancy agreement signed in December 2025. Both nations pledged to coordinate the project's implementation for sustainable and efficient corridor operation.
Why it mattersEthiopia's primary maritime gateway, the Ethio-Djibouti railway, will receive critical spare parts and technical training to improve its operational reliability.