The Ethiopian House of Representatives has approved a draft law authorizing a loan agreement worth over $738 million between Ethiopia and South Sudan.
The loan agreement was signed on May 18, 2023, to finance the construction of the Yaloch-Pawint road, which will stretch 220 kilometers from the Ethiopian border into South Sudan. The Ethiopian government's chief representative in the House, Tesfaye Beljige (Dr.), stated that Ethiopia is prioritizing infrastructure development in neighboring countries, including road and electricity projects. He emphasized the shared interest between Ethiopia and South Sudan in strengthening bilateral ties.
The loan agreement, amounting to $738,264,150.94, aims to facilitate the development of road infrastructure connecting the two countries. The civil and consulting work for the project will be undertaken by Ethiopians. South Sudan will repay the loan, including a 4% interest rate, within 10 years through cash or crude oil payments. The House of Representatives approved the draft law with a majority vote.