Ethiopia's Modjo–Hawassa Expressway Transforms Trade and Connectivity

For years, Solomon, a freight driver based in Hawassa, dreaded the journey north to Modjo, a route that would regularly take five or more hours. Navigating narrow, congested roads with unpredictable traffic and deteriorating surfaces meant long delays, wear on vehicles, and rising costs. But now, with the near completion of the Modjo–Hawassa Expressway, Solomon's daily reality is being transformed — and he is not alone.

"You'd leave early and still arrive late," Solomon says, recalling past trips. "Now, it's a smooth drive. What used to take five hours, now barely takes three."

This massive infrastructure upgrade is more than just a road — it represents a strategic shift in Ethiopia's approach to logistics, trade, and regional integration.

A National Priority for Strategic Infrastructure

The Modjo–Hawassa Expressway is Ethiopia's second major toll road and its first expressway south of Addis Ababa built to international standards. Stretching 202 kilometers, the expressway links critical urban and industrial centers — Modjo, Batu, Shashamene, Arsi Negele, and Hawassa — forming a vital artery for both domestic freight and passenger transport.

It is a central feature of Ethiopia's 10-Year Development Plan (2021–2030), which emphasizes transport sector modernization, economic corridor development, and regional trade integration. The road supports key national objectives: reducing logistics costs, enhancing supply chain efficiency, and improving service access for over 1.5 million people living along the corridor.

Project Features and Financing

The expressway consists of dual carriageways, grade-separated interchanges, electronic tolling systems, and dedicated wildlife crossings to ensure environmental sustainability and road safety. The Batu–Arsi Negele section, co-financed by the World Bank through a $295 million credit facility, is now over 85% complete as of March 2025.

All construction activities were guided by World Bank environmental and social safeguard policies, ensuring that resettlement, biodiversity concerns, and community engagement were handled responsibly. Structured consultations with local communities allowed project planners to incorporate feedback from residents and business operators, strengthening trust and transparency during implementation.

Impact on Trade and Transportation

When fully operational, the expressway is expected to reduce travel times by up to 40% — slashing the Modjo–Hawassa journey from five hours to three. Vehicle operating costs are projected to drop 15–20%, thanks to smoother driving conditions that lower fuel consumption, maintenance needs, and time spent on the road.

But the benefits are not limited to drivers and freight operators. The expressway also improves connectivity to markets, health centers, schools, and economic zones. It plays a pivotal role in boosting productivity at major hubs like the Hawassa Industrial Park, which employs more than 30,000 workers and serves as a model for sustainable industrial development in Ethiopia.

By linking producers, transporters, and distribution centers, the expressway enhances supply chain reliability, expands employment, and improves the competitiveness of small and medium enterprises.

Integration with Regional Trade Corridors

Beyond its national impact, the Modjo–Hawassa Expressway plays a key role in regional trade. The route feeds into the Trans-African Highway (Cairo–Cape Town Corridor) — a 10,000+ km arterial network connecting ten African countries from north to south.

For Ethiopia, this corridor is crucial. It links the country to Kenya's Northern Corridor, the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, and other critical regional infrastructure systems. These connections are essential for fulfilling the goals of the African Continental Free Trade Area (AfCFTA), which aims to reduce intra-African trade barriers and promote seamless cross-border movement of goods.

With Ethiopia positioning itself as a regional logistics hub, the expressway helps to reduce transit bottlenecks, cut down customs delays, and improve cost efficiencies for importers and exporters across East Africa.

Climate-Resilient and Sustainable Infrastructure

One of the key innovations of the expressway project is its climate-conscious design. Older roads along this route were vulnerable to seasonal flooding, erosion, and weather-related damage. The new expressway incorporates improved drainage systems, erosion control measures, and materials chosen for durability under varied climate conditions.

By enhancing year-round accessibility, the road strengthens supply chain resilience, especially during rainy seasons when transport in rural areas is most compromised.

Inclusive Development and Local Benefits

The expressway has already delivered local economic benefits during its construction phase, including thousands of jobs and contracts for local suppliers and contractors. Communities along the corridor report improved access to employment, education, and public services, as well as increased commercial activity.

Solomon's story echoes a broader sentiment shared by many — from traders and commuters to public service providers — that the road has brought efficiency, affordability, and dignity to daily life.

"Before, even a small delay could mean losing a whole day's work. Now I can make multiple trips, earn more, and get home to my family sooner," Solomon adds.

Looking Ahead: A Model for Infrastructure Excellence

The Modjo–Hawassa Expressway sets a new standard for transport infrastructure in Ethiopia and across the Horn of Africa. It showcases how high-quality engineering, inclusive community consultation, and multilateral development financing can combine to deliver transformational infrastructure.

As Ethiopia continues to expand its logistics backbone, this expressway serves as a blueprint for future corridors that support trade, sustainability, and social equity.