The signing took place on February 5 and marks an important expansion of the Bank’s development footprint in Djibouti.
Djibouti’s Minister of Economy and Finance in charge of Industry, Ilyas Moussa Dawaleh, who also serves as the country’s Governor at the Bank Group, signed on behalf of the government. Alex Mubiru, Director General for the East Africa region, signed for the African Development Bank. The ceremony was also attended by Nnenna Nwabufo, the Bank Group’s Vice President for Regional Development, Integration and Business Delivery.
Under the first agreement, a $22 million grant from the African Development Fund (ADF) will finance the rehabilitation of seven kilometres of urban roads in Djibouti City. This forms part of Phase I of the Integrated Urban Infrastructure and Climate Adaptation Project, which aims to strengthen the capital’s resilience to climate shocks while improving mobility and public services.
The second agreement allocates a $30 million ADF grant towards the rehabilitation of a key regional trade route that forms part of the Djibouti, Ethiopia and South Sudan Transport Corridor. Upgrading this corridor is expected to improve cross-border trade efficiency, reduce logistics costs and facilitate the movement of people and goods across the Horn of Africa.
Two further agreements, a $14 milliongrant and a $14 million loan from the Green Climate Fund, fall under the Building Resilience around Food and Livelihoods programme. This initiative aims to strengthen food security and climate resilience while supporting sustainable livelihoods. It focuses on climate-smart agriculture, more resilient pastoral systems and expanded economic opportunities for women and youth.
Dawaleh described the agreements as a reflection of Djibouti’s long-term development vision. He said that the investments go beyond infrastructure and represent an effort to secure the future of vulnerable communities by strengthening critical sectors such as transport and agriculture.
Director General Mubiru said the agreements reinforce the AfDB’s commitment to Djibouti’s development priorities, including Vision Djibouti 2035 and the country’s new National Development Plan for 2025 to 2030.
These commitments also reflect the rapid growth of the Bank’s operational portfolio in Djibouti. At the start of the Bank’s Country Strategy for 2023 to 2027, the portfolio stood at about $100 million. Two years into the strategy, it has more than doubled to $221 million.
The new funding is expected to improve connectivity, build climate resilience, support agricultural transformation and unlock new economic opportunities for thousands of people across Djibouti.
–AfDB/ChannelAfrica–
