<\/p>\n
A World Bank Group Country Private Sector Diagnostic identified regulatory and policy changes needed to convert Djibouti\u2019s strategic location, infrastructure and natural resources into broader economic development.<\/p>\n
<\/p>\n
Djibouti recorded average annual economic growth of 5.3% between 2016 and 2024, supported by foreign investment in port infrastructure and the country\u2019s role as Ethiopia\u2019s main maritime gateway.<\/p>\n
<\/p>\n
However, high electricity tariffs, limited financing, skills shortages and restrictions on competition have constrained private-sector growth. \u201cDjibouti must now move from an economic model that monetises its strategic location to one that transforms this geographical advantage into productive capacity,\u201d Minister of Economy and Finance Ilyas Moussa Dawaleh said.<\/p>\n
<\/p>\n
\u201cBy combining infrastructure and connectivity with affordable energy, industry, digital services, modern logistics and exports, we can open a new chapter of development.\u201d<\/p>\n
<\/p>\n
Off-grid solar energy represents the largest investment opportunity. Investors have installed about 10MW of capacity since 2022, with further projects under preparation.<\/p>\n
<\/p>\n
Commercial electricity costs $0.25 per kilowatt-hour, compared with an African average of $0.14. Reforms covering self-generation limits, power-purchase arrangements, sector regulation and skills development could unlock $390 million and create more than 8 500 jobs.<\/p>\n
<\/p>\n
Djibouti\u2019s eight operational submarine cables also create opportunities for data centres connecting Africa, Asia and Europe. Current capacity is nearing full use.<\/p>\n
<\/p>\n
Energy, market-access and regulatory reforms could mobilise between $160 million and $240 million and generate 700 to 1 300 jobs.<\/p>\n
<\/p>\n
Tourism reforms could attract between $66 million and $180 million and create 2 600 jobs. Attractions include Lake Assal, Lake Abbe and marine ecotourism. \u201cDjibouti\u2019s natural assets and infrastructure advantages are real, and the policy actions outlined here are the signal investors need to move from interest to commitment,\u201d International Finance Corporation Vice-President for Africa Ethiopis Tafara said.<\/p>\n
<\/p>\n
World Bank Vice-President for the Middle East, North Africa, Afghanistan and Pakistan Ousmane Dione said renewable energy, digital connectivity and tourism could expand Djibouti\u2019s development beyond the traditional gateway economy.<\/p>\n
<\/p>\n
The World Bank Group\u2019s current Djibouti portfolio includes almost $500 million for energy, transport, digital transformation, education, healthcare, social protection, employment, skills and governance.<\/p>\n
<\/p>\n
–WorldBank\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":45548,"template":"","meta":{"_acf_changed":false,"_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-45547","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Djibouti could attract at least $600 million in private investment and create about 12 000 jobs through reforms targeting solar energy, data centres and tourism.","published_date":"","news_description":"Djibouti could attract at least $600 million in private investment and create about 12 000 jobs through reforms targeting solar energy, data centres and tourism.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/45547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/45547\/revisions"}],"predecessor-version":[{"id":45549,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/45547\/revisions\/45549"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/45548"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=45547"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=45547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}