AfDB Strengthens Partnership with Djibouti to Drive Investment, Integration, and Inclusive Growth

The African Development Bank Group (AfDB) has reaffirmed its deep and enduring partnership with the Republic of Djibouti following a week-long consultation mission led by Executive Director Khaled Sherif from 3 to 10 October 2025. The high-level engagement underscored the Bank's commitment to accelerating project delivery, boosting institutional capacity, and optimizing investment portfolios to achieve inclusive and sustainable socio-economic development.

Deepening Strategic Collaboration

During the visit, the AfDB delegation held a series of consultations with senior government officials, development partners, and private-sector representatives. Meetings centered on ways to fast-track ongoing projects, mobilize new financing instruments, and align strategic priorities with Djibouti's long-term development vision.

In a meeting with Prime Minister Abdoulkader Kamil Mohamed, Executive Director Sherif reaffirmed the Bank's commitment to support new initiatives aimed at enhancing private sector participation, creating jobs for youth, and expanding investments in infrastructure — particularly in transport, tourism, energy, water, and telecommunications.

"Djibouti values its strategic partnership with the African Development Bank," said Prime Minister Mohamed. "We look forward to deepening this collaboration to advance transformative infrastructure and sustainable growth."

Sherif, in turn, emphasized that the AfDB views Djibouti as a critical partner in regional integration efforts, noting that its geographic location — at the crossroads of global maritime trade routes — makes it a natural logistics hub for the Horn of Africa and the wider Indian Ocean region.

"Djibouti's natural comparative advantage lies in its coastline of rare beauty, strategically positioned at the gateway to global trade," Sherif said. "The Bank is committed to helping Djibouti strengthen its position as a logistics and investment hub that connects Africa to the rest of the world."

Strengthening Governance and Financing Capacity

A key focus of the discussions was the modernization of public institutions and the expansion of access to concessional and blended financing to accelerate the country's reform agenda. In meetings with Minister of Economy and Finance Ilyas Moussa Dawaleh, who also serves as the AfDB Governor for Djibouti, both sides reviewed the Bank's active portfolio and identified opportunities for scaling up operations and improving efficiency.

The two leaders agreed on the need to enhance institutional capacity through training, digitalization, and improved project management frameworks. Minister Dawaleh highlighted the government's priority of inclusive economic growth, stressing that regional equity and spatial inclusion are fundamental to Djibouti's development strategy.

The mission also explored options for innovative financing models, including public-private partnerships (PPPs) and green investment vehicles, to attract capital into key growth sectors.

Aligning Priorities with Vision 2035 and AfDB's Ten-Year Strategy

The consultations took place within the broader context of Djibouti's Vision 2035, which outlines the country's roadmap toward becoming a middle-income economy driven by infrastructure, logistics, and human capital. The discussions also aligned with the AfDB's Ten-Year Strategy (2024–2033), which prioritizes inclusive growth, climate resilience, and regional integration across the continent.

Bank officials reaffirmed that environmental sustainability and climate adaptation will be integral to all future cooperation frameworks. With Djibouti's exposure to climate risks such as droughts and coastal flooding, both parties underscored the urgency of investing in green and resilient infrastructure and renewable energy systems to safeguard development gains.

Enhancing Regional Integration and Value Chains

Sherif emphasized the AfDB's ongoing support for regional infrastructure projects that connect Djibouti to neighboring countries, including transport and energy corridors that are part of the Horn of Africa Initiative (HoAI). These efforts aim to boost trade, facilitate cross-border investment, and strengthen regional value chains in logistics, agriculture, and renewable energy.

"Our focus is on developing regional value chains that will allow Djibouti and its neighbors to compete globally while creating jobs locally," Sherif said.

In parallel, the mission highlighted opportunities to expand Djibouti's tourism and services sectors, capitalizing on its natural beauty and strategic maritime positioning. Discussions also touched on advancing digital connectivity, a key enabler for business competitiveness and innovation.

Engaging Stakeholders Across Sectors

Beyond government engagements, the mission included extensive consultations with civil society, private sector representatives, and development partners, including the World Bank, European Union, and the Tony Blair Institute for Global Change. These working sessions provided an opportunity to discuss joint programming and coordinated investment in national development priorities such as job creation, youth empowerment, and social inclusion.

Technical workshops, organized in collaboration with the Ministry of Economy and Finance, refined sectoral priorities, assessed local implementation capacities, and established performance indicators and timelines for ongoing and upcoming projects.

The mission also examined the progress of AfDB-funded initiatives in energy access, water supply, and SME development, highlighting the Bank's catalytic role in leveraging resources for transformative impact.

A Roadmap for Action and Implementation

The consultation concluded with the adoption of a joint action plan to accelerate project execution, strengthen institutional frameworks, and identify new investment opportunities across strategic sectors. The plan includes specific milestones for the launch of pilot projects that align with Djibouti's Vision 2035 and the AfDB's Ten-Year Strategy.

Among the immediate next steps are:

• Establishing a country coordination platform to track project progress and outcomes;

• Strengthening the project management units within line ministries to improve execution;

• Developing a pipeline of bankable projects for private sector and blended-finance support;

• Expanding support for youth entrepreneurship and women-led enterprises; and

• Promoting green growth initiatives that enhance sustainability and climate adaptation.

Toward an Inclusive and Resilient Future

The mission reaffirmed the Bank's long-term commitment to supporting Djibouti's economic transformation, with a focus on resilient infrastructure, institutional governance, and human capital development.

"Djibouti is an emerging model of how strategic geography, strong institutions, and international partnerships can drive progress," said Sherif at the close of the mission. "The African Development Bank will continue to stand with Djibouti as it builds a more connected, inclusive, and sustainable future."

With the joint action plan now in motion, both the AfDB and the Government of Djibouti aim to translate this renewed partnership into tangible results — fostering prosperity not only for Djibouti but for the wider Horn of Africa region.