China grants Ethiopia $15 million for spare parts, track equipment and training on Ethio-Djibouti Railway

Ethiopia and China signed a $15 million grant agreement in Addis Ababa to supply spare parts, track equipment and technical training for the Ethio-Djibouti Railway, the electrified standard-gauge line linking Ethiopia to the port of Djibouti. Fana reported the signing in a dispatch dated November 5, 2026.

The grant is modest compared with the cost of building the railway. Its purpose is to keep the line running. Ethiopia is landlocked and relies on the route through Djibouti for most of its foreign trade, so the condition of the railway's locomotives and track affects how quickly and cheaply imports and exports move. The package covers replacement parts for electric locomotives, hardware for the main line and training for the Ethiopian staff who maintain it.

Who signed and what it covers

State Minister of Finance Tiguist Fisseha signed for the Ethiopian government. Liu Xiaoguang, Minister Counsellor at the Chinese Embassy in Ethiopia, signed for China, according to Fana and Birr Metrics. The agreement is formally titled the China-Aid Project for Supplementary Work of the Ethio-Djibouti Railway in Ethiopia. The Ethiopian News Agency also reported the signing.

Fana and Birr Metrics gave matching accounts of what the grant will provide:

• Mechanical and electrical spare parts to keep the railway's electric locomotives in service.
• Specialised track hardware and station-yard accessories intended to stabilise the main line.
• Small-scale machinery for routine track inspection and maintenance.
• Technical assistance from Chinese experts, who will travel to Ethiopia to give practical guidance and train railway personnel.

Both outlets said the aims are to improve the railway's operational reliability and strengthen maintenance of its infrastructure. Birr Metrics reported that the package is funded through China's aid fund and that the two sides held a technical consultation after the signing ceremony.

Neither outlet said when the equipment will be delivered, when the Chinese experts will arrive or how many Ethiopian staff will be trained. It is also not clear which Ethiopian body will receive and manage the equipment.

The railway's role in trade

Birr Metrics described the railway as Ethiopia's primary trade corridor and said the line handles more than 90 percent of the country's import and export freight passing through Djibouti's ports. The outlet said more reliable equipment and spare parts would reduce transit times and transport costs. Fana did not give a freight figure, and neither outlet cited official data on how much corridor cargo moves by rail compared with road.

Neither outlet described the operating problems, such as locomotive availability or service disruptions, that the grant is intended to address.

Background

The Addis Ababa–Djibouti standard-gauge railway runs roughly 750 kilometres from the Ethiopian capital to the port of Djibouti. It was built by Chinese state contractors and financed largely through Chinese loans. It began commercial operations in 2018, replacing a narrow-gauge line built in the early twentieth century that had largely fallen out of use. Since then, Ethiopia has faced difficulties repaying the construction loans and keeping the electrified line running at full capacity.

The railway is one of several areas of cooperation between the two governments. Fana and Birr Metrics noted that Ethiopia and China also cooperate on agricultural technical assistance, technical and vocational education and training, green development projects and technical surveys for future capital projects.

What comes next

Both sides said they would coordinate closely to carry out the project, according to Fana and Birr Metrics. Neither outlet gave a schedule for deliveries or expert missions, or said whether the grant is a one-off or part of a longer maintenance programme for the line.

Sources: Fana (state-affiliated), Birr Metrics, Ethiopian News Agency (state)

Picture: Fana (state-affiliated)

Picture: created for this story, not a photograph of the events.