The governments of South Sudan and Ethiopia signed an agreement on Thursday to build a highway linking the two countries, President Kiir’s office announced.

The agreement was signed by Finance Minister Dr Dier Tong Ngor, and Ethiopia’s Deputy Finance Minister Eyop Tekalign.

“President Kiir said the cross-border highway project would strengthen economic ties as well as enhance the free movement of people and goods in the Horn of Africa,” says the statement.

Both finance officials have hailed the project as historic and a significant development.

Minister Dier Tong reportedly said; “when the road is completed, it will reduce the cost of doing business in the region.”

South Sudan is looking for new routes to export part of its oil resources which it hopes to refine in the country, after the conflict in Sudan caused its oil prices to crash.