The governments of South Sudan and Ethiopia on Thursday signed an agreement to construct a highway connecting the two countries through Pagak.

The agreement was signed by Finance Minister Dier Tong Ngor on behalf of South Sudan and Ethiopia’s Deputy Finance Minister Eyop Tekalign.

A statement by the president’s office the road will improve economic ties.

“The cross border highway project will strengthen economic ties as well enhance the free movement of people and goods in the Horn of Africa,” it read.

Speaking to journalists during a visit to Freedom Bridge in Juba on Friday, Transport Minister Madut Biar confirmed the signing of the agreement.

“We inked a document in the office of the president on Thursday for building a road from Ethiopia through Pagak to Malakal,” he said. “that area also will have bridges and even cross the main island in Malakal that will connect Malakal to Unity State and parts of Barh el Ghazel.”

South is currently seeking alternative routes in the region to ease the transportation of refined oil from Paloch to neighboring countries. The ongoing fighting in Sudan has also created fears about oil flow interruptions and the safety of the crude oil pipeline.