The relationship between Ethiopia and South Sudan is rooted in shared history, culture, and longstanding diplomatic relations. The Addis Ababa Agreement of 1972, brokered by Emperor Haile Selassie, marked Ethiopia’s initial support for the Southern Sudanese cause, setting the stage for current political ties.
Ethiopia’s support continued through South Sudan’s Comprehensive Peace Agreement and its independence in 2011, making Ethiopia one of the first nations to recognize South Sudan as a sovereign state. Since then, both countries have formalized their cooperation through trade, education, capacity building, security, and infrastructure agreements.
Ethiopia is committed to enhancing economic relations, recognizing that infrastructure connectivity is vital for mutual prosperity. However, the two sisterly countries face critical challenges due to underdeveloped infrastructure. Despite strong political and diplomatic ties, the economic and infrastructural links between the two countries require urgent expansion and development.
Infrastructure and Energy Connectivity
Ethiopia and South Sudan have established multiple border outlets, but road infrastructure on the South Sudanese side still needs to be developed, limiting cross-border trade. The Pagak-Faluj-Malakal Road Project, long-discussed and recently ratified by both countries’ legislatures, aims to connect key areas in Northeast South Sudan and Western Ethiopia. When completed, this road will enhance economic integration, reduce inflation in the Greater Upper Nile region, and contribute to peace by fostering economic stability in conflict-prone areas.
Another strategic project, the Akobo-Pibor-Bor Road, will connect Ethiopia with central South Sudan, improving access to Juba. This road will also support the construction of a power transmission line from Ethiopia, attracting investment and boosting industrial productivity in South Sudan. The Boma-Raad-Kapoeta Road, part of the LAPSSET (Lamu Port South Sudan Ethiopia Transport) Corridor, aims to link Ethiopia, South Sudan, and Kenya, promoting broader regional integration. Extending this route into South Western Ethiopia would fully realize the LAPSSET initiative, enhancing cross-border trade and connectivity.
Complementing road networks, Ethiopia plans to extend electric transmission lines into South Sudan, enabling it to import power from the Grand Renaissance Dam. Reliable electricity will reduce costs, especially in South Sudan’s oil fields, and support industrial expansion, creating jobs and economic growth. This infrastructure could further facilitate a refinery at the border, where South Sudanese oil can be processed for Ethiopian use, meeting Ethiopia’s high demand for fuel. This will solidify the groundwork for the development of petrochemical and fertilizer industries.
The current initiative
The road construction agreement signed in May 2023 represents a significant step toward strengthening commercial ties and advancing economic integration between Ethiopia and South Sudan. This integration is pertinent, as it must reflect the staunch political relations between the two countries. Infrastructure projects, such as road networks and energy links, are crucial for deepening economic ties, improving the quality of life for citizens in both nations and serving as catalysts for regional peace and prosperity. By completing these initiatives, both countries can enhance economic cooperation, benefiting the entire region.
Ethiopia has a long history of investing in physical and energy infrastructure to improve connectivity with its neighbors. In pursuit of a closer relationship with South Sudan, Ethiopia has constructed three road outlets and opened one river route. However, achieving comprehensive infrastructure connectivity has faced challenges, including financial constraints, political instability, and ongoing conflicts in South Sudan since 2013.
Over a decade ago, Ethiopia built a vital highway from Addis Ababa to Pagak, an Ethiopian border town adjacent to South Sudan. However, extending this road into South Sudan’s interior has encountered delays and hindered cross-border integration. Under Prime Minister Abiy Ahmed, the Ethiopian government has taken historic steps to bridge this gap, recognizing the critical importance of regional connectivity.
Ethiopia is committed to constructing a network of roads within South Sudan that will link key cities in the Upper Nile region, including major oil-producing areas, to Ethiopia.
This ambitious endeavor is formalized through a financing agreement between the two countries. Notably, this agreement is not merely a loan; instead, it reflects a cooperative commitment from Ethiopia to its neighbor to foster regional economic integration and enhance cross-border connectivity. Ethiopia will fund and construct the road within South Sudan, thereby creating vital links that connect communities and economies on either side of the border. In return, the South Sudanese government has agreed to repay the project costs, with the agreement ratified by the South Sudanese parliament in July and the Ethiopian parliament just this week.
This project is unprecedented in African history, marking the first time an African nation has undertaken to build significant infrastructure within a neighboring country to promote broader regional connectivity. It is a landmark initiative in Africa’s journey toward economic integration and mutual development. The financing agreement between Ethiopia and South Sudan aims to improve road connectivity, thereby enhancing trade, tourism, and cultural exchange, aligning with the AU Agenda 2063, the IGAD Minimum Integration Plan, and the broader regional economic integration initiatives.
Editor’s Note: Ambassador Markos Tekle is a trainer and foreign policy consultant at Institute of Foreign Affairs.
BY AMBASSADOR MARKOS TEKLE (PhD)
THE ETHIOPIAN HERALD SATURDAY 16 NOVEMBER 2024
