The African Development Bank (AfDB) has allocated a grant worth $125m to finance the second phase of construction of the Mombasa-Nairobi-Addis road in Ethiopia.

The project involves rehabilitation of the 193km-long Ageremariam-Yabelo-Mega road section on the Ethiopian side, as well construction of roadside socio-economic infrastructure and a one-stop border post at Moyale.

The three-phase road construction project will be part of the Trans-African highway network, which will provide transport linkage between Kenya and Ethiopia.

The road project is expected to boost trade between the countries by reducing transit time in transportation of goods and should also increase the volume of Ethiopian goods transiting through Mombasa port in Kenya.

The corridor project will also promote increased intraregional trade and regional integration in East Africa and the Horn of Africa.