Ethiopia and Kenya Agree to Deepen Economic Integration Through Horn of Africa Gateway Initiative

June 13, 2025

Ethiopia and Kenya enjoy deep and enduring political and people-to-people relations spanning sixty years. The two countries not only share borders but also closely linked communities that have withstood the challenges of time. Their ties have remained strong and consistently progressive, regardless of leadership changes in their respective capitals.

Ethiopia and Kenya reaffirmed their commitment to strengthening economic integration during high-level bilateral engagements convened under the auspices of IGAD on the Horn of Africa Gateway Development Project (HoAGDP) on Thursday (June 5). The initiative is expected to contribute to improving the livelihoods of communities along their common border.

Ahmed Shide, Minister of Finance, emphasized that both countries have set specific targets to accelerate joint infrastructure projects, including the construction of bridges at Suftu and Rhamu and the establishment of a One-Stop Border Post (OSBP) at Rhamu to facilitate customs procedures and trade flows. These efforts build on the outcomes of the March 2025 Ministerial Meeting in Addis Ababa.

The Minister also highlighted the importance of the Isiolo–Mandera corridor, supported by the World Bank’s Horn of Africa Gateway Development Project, as a key element in advancing regional integration and local economic development. He further pointed to plans to expand high-capacity fiber optic networks to improve digital connectivity and service delivery.

Workneh Gebeyehu, Executive Secretary of IGAD, encouraged both countries to continue infrastructure development and policy coordination to support regional economic growth. He noted that current cross-border trade between Ethiopia and Kenya stands at $284 million, which represents only a fraction of the trade potential. The planned One-Stop Border Post at Rhamu is expected to reduce cargo clearance times from 6.5 hours to 45 minutes and cut transport costs by 32 percent.

Cyrell Odede Wagunga, Principal Secretary for the State Department for Investment and Assets Management of the National Treasury of Kenya, confirmed his government’s support for the project, which is backed by $750 million in financing from the World Bank’s International Development Association (IDA). He described the Horn of Africa Gateway Development Project as an important regional initiative that will enhance trade, connectivity, and stability. The project is scheduled for completion by June 2028.

The planned bridges and supporting infrastructure are expected to further strengthen cooperation between Ethiopia and Kenya and contribute to ongoing efforts to address poverty and underdevelopment in the region.