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Multinational - Ethiopia – Djibouti Transport Corridor Project Phase I – ESIA Summary
While Ethiopia’s export is growing, trade volume is still low relative to the size of the economy. Trade is expected to play a key role in achieving the objectives of Growth and Transformation Plan II (GTPII ) and in driving sustained poverty reduction in Ethiopia. One of the key factors that has been identified as undermining Ethiopia’s international competitiveness and constraining trade expansion is high trade costs due to poor road transport networks. The Government of Ethiopia (GoE) has been expanding the road network by implementing the Road Sector Development Plan (RSDP) since 1997 which has increased the road network from 26550 km in 1997 to 120,171 km in 2017 (an increase of 353 percent). As a result, the road density per 1000 sq. km has increased from 24.1 km in 1997 to 109.2 km in 2017. Substantial improvement has also been registered in the condition of the country’s road network. The proportion of road network in good condition increased from 22% in 1997 to 72% in 2017. The impacts include improved agricultural production and marketing, a better access to social and economic facilities, and ultimately improved welfare of the people.