At a Glance
- Ethiopia’s ERC and Italy’s COIPA Italia have partnered to modernize the Awash–Kombolcha rail line, a key segment in the national network.
- The deal emphasizes technology transfer, digital systems, and training to empower local engineers and ensure sustainability.
- Once operational, the corridor will boost regional trade, connect Ethiopia’s industries to Djibouti’s port, and support Africa’s green infrastructure drive.
Ethiopia is taking a decisive step to reassert itself as one of Africa’s leading transport and logistics hubs.
In a landmark move, the Ethiopian Railways Corporation (ERC) has signed a framework agreement with Italy’s COIPA Italia to modernize the country’s railway network—beginning with the long-delayed revival of the Awash–Kombolcha line.
The deal, signed in Addis Ababa on Sept. 10, marks one of the most significant international partnerships in Ethiopia’s transport sector in recent years.
It underscores the government’s determination to rebuild a modern, reliable, and efficient rail system capable of supporting the country’s industrial ambitions and strengthening its position as a gateway to East and Central Africa.
At a time when African economies are pushing to expand connectivity and boost regional trade, Ethiopia’s renewed focus on rail transport reflects its strategic intent.
The collaboration brings Italian engineering expertise, advanced digital systems, and European safety standards to a nation that sits at the heart of some of Africa’s busiest trade routes.
More importantly, it also emphasizes skills transfer—ensuring the modernization effort leaves behind more than just infrastructure.
The partnership, officials say, is not merely about rebuilding tracks—it’s about laying the groundwork for a sustainable and competitive transport system that can fuel long-term growth.
For a country emerging from conflict and economic headwinds, this agreement signals a new phase in Ethiopia’s modernization story.
Reviving a stalled dream
At the core of the partnership lies the rehabilitation of the 270-kilometer Awash–Kombolcha segment of the national rail network.
Originally launched in 2012 under a $1.7 billion contract with Turkish construction firm Yapı Merkezi, the larger Awash–Hara Gebeya line was envisioned as a 392-kilometer electrified route connecting the Djibouti–Addis Ababa mainline to northern Ethiopia.
The project, however, was derailed by regional instability and infrastructure damage during the Tigray conflict.
Under the new deal, COIPA Italia will lead efforts to restore and upgrade the line, introducing advanced diagnostic systems, locomotive repowering, and integrated digital control technologies to ensure efficiency and safety.
Once completed, the railway is expected to link Ethiopia’s industrial zones and agricultural heartlands with major ports, improving the movement of goods and people while cutting transport costs.
The modernized corridor could also help open up new export markets and strengthen Ethiopia’s competitiveness within regional supply chains.
Building skills alongside rail lines
Beyond technology and construction, the agreement is equally focused on human capacity.
ERC Chief Executive Hilina Belachew described the collaboration as “a fundamental step toward strengthening Ethiopia’s railway infrastructure while integrating world-class European engineering expertise.”
The deal includes a comprehensive training program designed to equip Ethiopian engineers and technicians with advanced rail operation and maintenance skills.
By prioritizing knowledge transfer, the ERC aims to ensure that Ethiopia’s progress is self-sustaining, reducing reliance on external expertise in the long term.
For COIPA Italia, the partnership marks a deepening role in Ethiopia’s infrastructure transformation.
The company is already involved in projects aimed at developing logistics hubs and modern transport facilities across the country.
CEO Vito Favorito Sciamarella said the initiative blends advanced technology with sustainable development goals.
“We are proud to make our experience available to support Ethiopia’s transport system,” Sciamarella said.
“This is about creating local value, new jobs, and long-term opportunities.”
Italian Ambassador Agostino Palese echoed this sentiment, describing the project as a symbol of friendship and shared ambition between Ethiopia and Italy.
“Modern rail transport will be vital for Ethiopia’s economic recovery and regional integration,” he said.
A regional catalyst for Africa’s connectivity
The revival of the Awash–Hara Gebeya corridor is expected to have far-reaching effects on East Africa’s logistics landscape.
Once operational, it will link Ethiopia’s inland regions with Djibouti’s port—one of Africa’s busiest maritime gateways—enhancing trade efficiency and supporting regional supply chains.
For investors and the private sector, improved transport links could open new opportunities across industries ranging from manufacturing to tourism.
A modern rail system means easier access to markets, streamlined exports, and the potential for new cross-border routes.
With energy-efficient locomotives and predictive maintenance systems, the project also aligns with Africa’s growing commitment to green and sustainable infrastructure.
As global trade rebounds and African economies seek post-pandemic recovery, Ethiopia’s partnership with Italy could emerge as a model for others.
It shows how international cooperation, when rooted in local empowerment, can reshape a country’s economic future while advancing regional integration.
Toward a connected and competitive Africa
Ethiopia’s renewed push for railway modernization reflects more than a national vision—it speaks to Africa’s broader ambition for connected, sustainable growth.
The agreement with COIPA Italia combines European precision with Ethiopian resolve, setting the stage for a modern transport network that supports industrialization, trade, and shared prosperity.
In the long run, Ethiopia’s effort to build one of East Africa’s top rail hubs is not just about steel and infrastructure.
It’s about connecting people, markets, and opportunities—laying new tracks for economic transformation that extend far beyond its borders.
