This marks the country’s first Program‑for‑Results financing. The initiative is designed to broaden economic opportunities, strengthen the private sector and create jobs for Djiboutians.
The operation represents the first phase of a longer‑term World Bank engagement with Djibouti, with a total financing envelope of $75.75 million planned for the 2026 to 2034 period. Under the results‑based approach, disbursements will be tied to the achievement of clearly defined reform milestones, placing strong emphasis on implementation and measurable outcomes.
The programme is also the first in the region to be co‑led by the World Bank and the International Finance Corporation (IFC). This joint approach combines public‑sector reform support with parallel IFC advisory services and investments, creating an integrated platform to mobilise private capital and scale up job creation over time.
“This operation reflects the depth and ambition of the World Bank Group’s partnership with Djibouti,” said Fatou Fall, the Bank Group’s Joint Resident Representative for Djibouti. “As the country’s first results‑based financing operation and the first in the region co‑led by the World Bank and IFC, it positions Djibouti to attract private investment and translate reforms into tangible opportunities for its people.”
The programme focuses on three key pillars aligned with Djibouti Vision 2035 and the National Development Plan for 2025 to 2030. These include strengthening the governance of state‑owned enterprises and access to public procurement, improving the business and investment climate, and enhancing the competitiveness of small and medium enterprises through better access to finance and business development services.
Minister of Economy and Finance Ilyas Moussa Dawaleh described economic diversification as a strategic necessity rather than a choice. “We must move beyond legacy models of ports and foreign bases to build a resilient, competitive and investment‑driven economy,” he said.
He added that the programme would drive transformative reforms aimed at unlocking private‑sector potential, crowding in high‑quality private investment and delivering inclusive growth, fully aligned with the ambitions of Djibouti Vision 2035.
–WorldBank/ChannelAfrica–
