• The African Development Bank (AfDB) granted a $2 million subsidy for Phase 2, complemented by USD 100,000 from Egypt’s government.
• Phase 2 will cost $11.7 million and will update feasibility and technical studies to structure a new network of river ports.
• Egypt aims to increase intra-African trade by 20% by 2029 and reach $145 billion in total trade by 2030.

Egypt has initiated Phase 2 of the Lake Victoria–Mediterranean (VIC-MED) corridor as it accelerates a major regional integration project backed by the African Development Bank (AfDB). The initiative aims to develop a strategic river-maritime network and strengthen Egypt’s position as one of Africa’s leading commercial hubs.

The Ministry of Transport issued a call for expressions of interest for Phase 2, according to reports from local media. The project seeks to connect East Africa to the Mediterranean Sea through an integrated river corridor. AfDB granted $2 million to finance this new phase, while the Egyptian government contributed an additional USD 100,000.

The authorities will use the funding to advance technical studies and design a future network of river ports across several governorates. The infrastructure will support both freight and passenger transport.

Egypt completed Phase 1 in July 2019 with support from a $650,000 AfDB grant. The first phase established the project’s legal and institutional framework and launched two regional river transport programs. Phase 2, which carries a total cost of $11.7 million, will build on this foundation through updated feasibility studies and in-depth technical assessments.

The government plans to create a multimodal logistics corridor able to receive and ship goods, including containers, via modern river vessels. The infrastructure will also enhance domestic mobility and boost trade with countries surrounding Lake Victoria. The project fits into Egypt’s broader strategy to diversify trade routes and consolidate its role in intra-African commerce.

Egypt ranked first in North Africa and third on the continent for intra-African trade in 2023, according to Afreximbank’s African Trade Report 2024. Its trade with the rest of the continent rose 10.8% to $8.3 billion that year. The government now targets a 20% increase in intra-African commerce by 2029 and aims to reach $145 billion in total trade by 2030.

This article was initially published in French by Henoc Dossa

Adapted in English by Ange Jason Quenum