Djibouti

AFD Group has been present in Djibouti since 1974, and deploys a range of financing tools to support the urban sector, human capital and economic activity. Our aim is to support the country in the implementation of public policies in order to sustainably improve the lives of its inhabitants, particularly the most vulnerable.
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AFD's action in Djibouti
AFD AND DJIBOUTI: INVESTING IN SOLIDARITY AND REDUCING INEQUALITY
AFD's action in Djibouti

Redeveloping precarious neighborhoods

Balbala neighborhood of Djibouti

Redeveloping precarious neighborhoods

AFD is funding the modernization of precarious neighborhoods in the municipality of Balbala. This program allows the inhabitants to benefit from an improvement in their housing conditions, urban community facilities, and essential services. 

As solid waste management is crucial to urban development, the Republic of Djibouti, the European Union and AFD have co-financed several initiatives, including the construction of a landfill site. A pilot project for waste collection and disposal has also been established in the municipality of Balbala.

To improve sanitary conditions in Djibouti City, AFD and the European Union are also financing the improvement of the liquid waste treatment system, by extending wastewater collection networks and increasing the processing capacity of the purification plant. A program to strengthen the national water and sanitation operator will also improve the quality and sustainability of its services.

Finally, to improve the delivery of local public services, AFD is supporting the Djibouti City Council and its three municipalities in their decentralization process, by creating an environment that is favorable to the operationalization of an effective local governance framework between the State, its communities, and its citizens.
 

Support education and professional training

Children from Andoli, in Djibouti

SUPPORT EDUCATION AND PROFESSIONAL TRAINING

Education is one of AFD’s key areas of intervention in Djibouti. The first operations date back to the early 2000s with the improvement of primary school education in rural areas. AFD also supported the Ministry of Education in the development of its first master plan, curriculum reform, the initial and in-service training of its primary education staff, and capacity building for the General Inspectorate.  

AFD now supports the professionalization of young people, businesses, and stakeholders in the port and transport logistics sector, thanks to grants delegated by the EU and a contribution from the Djibouti Chamber of Commerce.

Since 2020, AFD has also supported the improvement of the quality of education and research, the revitalization of the digital ecosystem through the construction and equipping of a training facility for innovation and digital technology, located on the University of Djibouti campus, and the strengthening of the capacities of the Higher Institute of Health Sciences.

As of 2022, and in partnership with UNICEF, we are also endorsing the implementation of a project in support of the Plan of Action for Education 2021-2025. This will help to keep young and vulnerable teenage girls in the Djiboutian education system.
 

Diversifying the energy supply

High-voltage electric line in Ethiopia

Diversifying the energy supply

In Djibouti, AFD supports renewable energy, particularly geothermal energy. In 2014, for example, we funded an exploratory drilling program and provided technical assistance in order to diversify the country’s energy supply, while also ensuring low-carbon development. 

AFD also supports the Djibouti government in its efforts to improve energy management through an energy efficiency project for public buildings.
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Strengthening the private sector

Fruit and vegetable seller in Djibouti

Strengthening the private sector

AFD deploys a wide range of financial tools to strengthen the country’s private sector, in order to support the national strategy for wealth and job creation. 
Through the Trade Capacity Building Program (TCBP), we support Djibouti’s international trade actors and the Chamber of Commerce in its implementation of the ‘Vision 2035’ development strategy. 

This strategy aims to make the country the ‘Lighthouse of the Red Sea’ - a trade and logistics hub for East Africa. Proparco, the Group’s private sector subsidiary, also participated in the financing of port infrastructure, such as the Doraleh container terminal.

Djibouti Télécom has also benefited from several direct loans for the laying of underwater fiber optic cables. Over time, these capital investments should allow Djibouti to become a regional telecommunications hub.

Guarantee funds (ARIZ/EURIZ) for local banks will facilitate access to investment loans for small and medium-sized companies. Proparco has also supported the growth of the Bank of Africa–Mer Rouge (BOAMR) through equity investments.  

Finally, a comprehensive program to support the modernization of the banking sector and the financial inclusion of vulnerable populations is currently under review.
 

180
projects funded
45+
years of action in Djibouti
200
million euros invested since 2010

The Republic of Djibouti is a country of 23,200 km² in the Horn of Africa, located at the mouth of the Red Sea. With no natural resources and a tropical semi-desert climate, the country’s key asset is its geographical position, which it utilizes by developing port and telecommunications activities, particularly with Ethiopia. This positioning also allows it to host military bases, which are a source of stability in a region prone to conflict.  The government’s strategy is to develop an economy that generates jobs, through the creation of a logistics and services platform that will attract regional and international private companies.

Since 2014, the State has been formulating a long-term development vision ‘Djibouti 2035’, in a broad participatory approach. This planning strategy aims to get the country out of emergencies, and thus build sustainable development.

AFD has been present in Djibouti since 1974 and supports the country’s development and the improvement of its inhabitants’ living conditions in three priority areas: sustainable urban development, economic development and support for the private sector, and education and professional training. 

We support the government through subsidies and public and private companies through a wide range of tools, from subsidies to non-sovereign loans, credit lines and guarantees, technical assistance and capacity building programs, as well as equity investments. Since 2010, AFD has invested over €200 million in the country.

AFD's Djibouti office is directly attached to the East Africa regional office in Nairobi.

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