Ethiopia, Kenya Leverage HOAGDP to Transform Border Regions

Ethiopia and Kenya have recently signed the Horn of Africa (HoA) Gateway Development Project (HOAGDP) with the objective of enhancing infrastructure connectivity, social and economic development, trade facilitation, and cross border development.

Studies indicate that cross border trade between Ethiopia and Kenya remains at a mere 284 million USD annually, despite their 861 kilometers of shared border. This means the two countries are only realizing 10 percent of their potential compared to the 2.3 billion USD trade volume that already exists between some East African countries.

Addis Ababa University Socioeconomic Development Associate Professor Messay Mulugeta that cross border cooperation is crucial to promote trade, facilitate movement, control transboundary diseases, and mitigate conflict. “This should involve both customary and state institutions in which the pastoral people are represented.”He indicated that human and environment centered infrastructure development should be strengthened as a way forward.

Ethiopia and Kenya have collaborated on border projects such as the construction of a new road, which will enhance transportation and trade. Additionally, they have focused on improving access to clean water, healthcare, and education in border areas, improving quality of life and promoting sustainable development.

In a recent development, high-level officials agreed on the HOAGDP with the objective of enhancing infrastructure connectivity, social and economic development, trade facilitation, and cross border development. The project is supported by 750 million USD from the World Bank and is targeted for completion by June 2028, according to the joint communiqué.

According to Finance Minister Ahmed Shide, Ethiopia remains fully committed to this partnership as it helps shape a more connected, prosperous, and resilient future for both nations and the wider Horn of Africa region.

“We recognize the potential of extending high-capacity fiber optic infrastructure to Ethiopia, with a possible link to Djibouti. This digital backbone will boost trade, improve government services, and connect our people more efficiently,” he said.

“The true beneficiaries are the communities along the border–the pastoralists, traders, youth, and families who will gain better access and opportunities,” he added.

Kenya’s National Treasury Cabinet Secretary John Mbadi said that the project stands as a pivotal initiative under the broader HoA Initiative, designed to fundamentally transform connectivity and foster development across Kenya, Ethiopia, Somalia, and the wider Horn of Africa region.

The objectives of this project include enhancing the movement of people and goods, expanding digital connectivity, facilitating regional trade and development, improving access to essential services in designated areas, and strengthening the institutional capacities of key transport and related agencies within Kenya and Ethiopia, he added.Beyond the immediate economic benefits, the project is explicitly designed to address long-standing issues of marginalization and insecurity in Kenya’s northern region, thereby fostering stability in the border region.

IGAD’s Executive Secretary Workeneh Gebeyehu (PhD) expressed that the HOAGDP represents the governments’ collective commitment to converting geographical proximity into economic prosperity and shared development.

The Mandera Triangle, Workneh said, long characterized in popular culture as a marginalized area, represents an untapped opportunity. Both the Ethiopian and Kenyan governments are aware of the trade potential between them.

“Our two nations stand to jointly benefit from the ongoing infrastructure investment that will finally link Isiolo to Mandera, further unlocking the vast potential of Ethiopia-Kenya trade ties and cementing our historical security partnership, stretching back to the Mutual Defense Pact, which was one of the oldest in Africa,” he noted.

Workineh added that digital transformation is critical, pointing out that “only 23% of the Mandera Triangle currently has reliable internet access,” and stressed that the project supports ICT use for revenue collection, streamlined customs processes, and enhanced transparency.

The Secretary highlighted that these projects could reduce healthcare access distances by 50 percent, potentially saving many lives annually.

“Our fabric optic backbone from Isiolo through Mandera to Djibouti is projected to achieve 89 percent coverage by 2028, creating 15,000 digital economic jobs and adding 340 million USD to our regional GDP. Trade facilitation also requires our immediate attention. Current border crossing time’s average is 6.5 hours for cargo trucks.”