The governments of Djibouti, Ethiopia, South Sudan and Uganda have signed an inter-state agreement formally establishing the Djibouti–Ethiopia–South Sudan–Uganda Corridor Authority, marking a major step toward integrated trade and transport governance in the Horn of Africa.
The agreement, signed during a ministerial session in Djibouti, creates a binding regional framework to coordinate planning, investment, operations and performance monitoring across what is now known as the DESSU Corridor.
The corridor will connect the Port of Djibouti to landlocked South Sudan and Uganda via Ethiopia, offering alternative and potentially more efficient access to global markets.
Institutionalising Regional Integration
Officials described the creation of the DESSU Corridor Authority as a shift from bilateral coordination to unified institutional governance.
The Authority will oversee infrastructure development and introduce digital, smart logistics systems aimed at cutting transit times and lowering trade costs. Ministers agreed that the institution will begin operations in early 2026, with immediate priorities including the establishment of a secretariat, operational protocols and a legal framework for corridor management.
“This Agreement moves us from aspiration to implementation,” said Hassan Houmed Ibrahim, Djibouti’s Minister of Infrastructure and Equipment.
“For Ethiopia and our neighbours, it is about reducing the cost of doing business and building systems that make regional trade predictable, digital, and sustainable.”
Ethiopia’s Minister of Transport and Logistics, Alemu Sime, termed the development a historic milestone.
“The DESSU Corridor Authority will ensure that goods and people move faster, safer, and more efficiently across our borders, making the region a competitive gateway for continental trade,” he said.
Building on Existing Investments
The corridor builds on progress already made along the Djibouti–Ethiopia segment, which has benefited from €32 million in European Union financing delegated to the Agence Française de Développement under a regional integration programme.
Implementation support has been provided by TradeMark Africa, focusing on upgrading physical and digital infrastructure to reduce transit times by up to 50 percent.
These upgrades include improvements in customs processes, digitised systems and corridor performance monitoring tools designed to create more predictable and transparent trading systems.
The new Authority is expected to consolidate these gains and extend harmonised standards to the Ethiopia–South Sudan–Uganda segments, where planned investments include roads, dry ports and multimodal transport links.
Strategic Importance for South Sudan
The timing of the Authority’s formation is significant for South Sudan, which has been seeking to diversify its oil export transit routes.
The country recently signed a complementary agreement with Djibouti to develop river and dry ports along the White Nile and is constructing a road linking Paloich in South Sudan to Pagak in Ethiopia.
Madut Biar Yel, South Sudan’s Minister of Transport, highlighted the corridor’s economic potential.
“By harmonising infrastructure and policy frameworks, this corridor will open new markets for South Sudan’s goods, create jobs, and strengthen regional supply chains that benefit communities across borders,” he said.
Uganda and AfCFTA Ambitions
Uganda’s Minister of Works and Transport, Katumba Wamala, said the establishment of the Authority would strengthen long-term governance and enhance competitiveness under the African Continental Free Trade Area framework.
“Our commitment is to turn the DESSU Corridor into a model of efficiency,” he said. “The establishment of the Authority ensures long-term cooperation and governance that will accelerate our regional competitiveness under the AfCFTA.”
As intra-African trade expands under AfCFTA, corridor efficiency has emerged as a key determinant of competitiveness. Landlocked countries in particular depend heavily on reliable transport routes to manage import costs and export timelines.
Regional and International Backing
The signing ceremony was attended by senior representatives from the European Union and the French Development Agency, reflecting continued international support for regional trade facilitation initiatives.
Eugene Torero, Regional Director for the Horn of Africa at TradeMark Africa, said the Authority represents a transition toward integrated, data-driven trade systems.
“The DESSU Corridor Authority embodies a regional vision where legal frameworks, infrastructure, and digital systems converge to make trade faster, cheaper, and fairer,” he said.
Toward an Emerging Trade Gateway
DESSU is among the newest corridors in the Horn of Africa to be formalised through an inter-state agreement. By creating a unified oversight body, the four governments aim to avoid fragmented infrastructure development and instead pursue a harmonised regional model.
If successfully implemented, the corridor could significantly lower the cost of doing business across the region while improving supply chain resilience.
For Djibouti, which already serves as a critical maritime gateway for Ethiopia, the expanded corridor enhances its position as a strategic logistics hub. For Ethiopia, South Sudan and Uganda, the initiative offers improved access to global markets and diversified trade routes.
As the Authority prepares to begin operations in 2026, attention will turn to the speed of institutional setup, financing mobilisation and the execution of planned infrastructure investments that will determine whether DESSU can deliver on its promise of seamless regional connectivity.
