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World Bank Group Financing of Over US$25 Million to Support Economic Diversification in Djibouti - World Bank
03/30/2026

World Bank Group Approves $25.75 Million for Djibouti Economic Diversification

Financing approved for diversification program

The World Bank Group has approved a US$25.75 million grant from the International Development Association to support the Djibouti Economic Diversification Program, the country’s first Program-for-Results financing. The program is intended to expand economic opportunities, strengthen the private sector, and create jobs in Djibouti.

The operation is the first phase of a longer-term World Bank Group engagement with Djibouti, with a total financing envelope of US$75.75 million planned for 2026 to 2034. Under the Program-for-Results approach, disbursements are tied to specific reform milestones, emphasizing delivery and measurable outcomes.

The initiative is also the first operation in the region to be co-led by the World Bank and the International Finance Corporation, combining public-sector reform support with parallel IFC advisory services and investments. The aim is to create an integrated platform to attract private capital and expand job creation over time.

Reform priorities

According to the World Bank Group, the program supports the government’s agenda under Djibouti Vision 2035 and the National Development Plan 2025–2030. It focuses on three main areas:

  • strengthening governance of state-owned enterprises and access to public procurement
  • improving the business and investment climate
  • enhancing the competitiveness of small and medium enterprises, including through better access to finance and business development services

Fatou Fall, the World Bank Group’s joint resident representative for Djibouti, said the operation reflects the scale of the institution’s partnership with the country and is designed to help translate reforms into tangible opportunities by attracting private investment.

Government sees strategic shift

Djibouti’s Minister of Economy and Finance in charge of Industry, Ilyas Moussa Dawaleh, described economic diversification as a strategic necessity for the country’s future. He said the program is intended to support structural reforms that can unlock private-sector potential, attract investment, and generate broader opportunities for the population.

The financing marks a new stage in Djibouti’s development strategy by linking reform implementation to results and pairing public policy changes with private-sector support.