Addis Ababa (Ethiopia), Oct 5 (IANS) Horn of Africa countries Ethiopia and Djibouti on Wednesday launched the continent's first modern electric railway connecting their respective capitals, media reported.

The 752.7 km Ethiopia-Djibouti railway was inaugurated in the Ethiopian capital Addis Ababa in a grand ceremony, Xinhua news agency reported.

The railway has a designed speed of 120 km per hour and was constructed by China Railway Group and China Civil Engineering Construction Corporation with a total investment of $4 billion.

It is expected to reduce travel time between the two capital cities from seven days by road to about 10 hours only, and provide landlocked Ethiopia faster access to Djibouti port.