The ministry links the equipment package to keeping electric locomotives in service and strengthening infrastructure maintenance. Its scope covers rolling stock spares, main-line and station-yard hardware, and machinery for routine track inspection and maintenance.
The support also includes practical guidance and training by Chinese technical experts who will travel to Ethiopia. The ministry identifies building local technical capacity as part of its aim to support sustainable and efficient railway operations.
- Ethiopia’s Ministry of Finance announced on 4 November 2026 a signed agreement with China for a US$15 million grant package for supplementary work on the Ethio-Djibouti Railway in Ethiopia.
- The agreement secures a US$15 million grant package through the China-Aid fund.
- Its supplementary project aims to improve the operational reliability of the standard gauge railway and strengthen maintenance of its infrastructure.
- The package includes mechanical and electrical spares to keep electric locomotives in service, track hardware and station-yard accessories.
- Small-scale machinery is included for routine track inspections and maintenance.
Ethiopia and China have signed an agreement for a US$15 million grant package covering equipment, spare parts and technical training for supplementary work on the Ethio-Djibouti Railway in Ethiopia, according to Ethiopia’s Ministry of Finance.
In a statement dated 4 November 2026, the ministry said the agreement formalises support through the China-Aid fund. The project aims to improve the operational reliability of the standard gauge railway and strengthen maintenance of its infrastructure.
The package includes mechanical and electrical spare parts to keep electric locomotives in service, specialised track hardware and station-yard accessories to support main-line stability, and small-scale machinery for routine track inspections and maintenance.
Chinese technical experts will travel to Ethiopia to provide practical guidance, train railway staff and help build local technical capacity. The ministry described the grant as material assistance, equipment upgrades and capacity building intended to support sustainable and efficient railway operations.
Tiguist Fisseha, Ethiopia’s State Minister of Finance, signed on behalf of the Ethiopian government. Liu Xiaoguang, Minister Counsellor at the Embassy of the People’s Republic of China in Ethiopia, signed for the Chinese government. The ceremony took place in Addis Ababa and was followed by a technical consultation.
The ministry said both sides also discussed their continuing cooperation in agricultural technical assistance, technical and vocational education and training, green development and technical surveys for future capital projects. The delegations reaffirmed their commitment to close coordination on implementation of the railway support project.
