The African Development Bank and the government of Djibouti signed agreements for $80 million in financing to support implementation of key road infrastructure, urban development and climate-resilient agriculture projects across Djibouti.
Djibouti’s Minister of Economy and Finance in charge of Industry, Ilyas Moussa Dawaleh, who is also Bank Group Governor, and Alex Mubiru, the Bank’s Director General for the East Africa region, signed on behalf of their respective entities.
Bank Group Vice President for Regional Development, Integration and Business Delivery Nnenna Nwabufo also attended the signing.
Under the first agreement, a grant of $22 million from the African Development Fund (ADF) will support rehabilitation of seven kilometers of urban roads in Djibouti City as part of Phase I of the Integrated Urban Infrastructure and Climate Adaptation Project.
The second agreement covers a $30 million ADF grant for rehabilitation of a critical road artery for regional trade, part of the Djibouti‑Ethiopia‑South Sudan Regional Transport Corridor Project.
Strengthening the corridor is expected to boost cross‑border commerce, lower logistics costs, and enhance the movement of people and goods across the Horn of Africa.
Two additional agreements— a grant and loan of $14 million each from the Green Climate Fund— were signed under the Building Resilience around Food and Livelihoods (BREFOL) program in the Horn of Africa. The program aims to improve food security, enhance climate resilience, and support sustainable livelihoods through climate‑smart agriculture, more robust pastoral and agro‑pastoral systems, and economic opportunities for women and youth.
“These agreements reflect our vision for a modern and resilient Djibouti,” said Minister Dawaleh. “By investing in our roads and agriculture, we are not just building infrastructure. We are securing the future of our most vulnerable communities.”
Director General Mubiru said, “The agreements we sign today reaffirm our commitment to supporting the government’s development priorities, including Vision Djibouti 2035 and the emerging National Development Plan 2025–2030.”
The agreements reflect a significant expansion of the Bank’s portfolio in Djibouti in recent years, from approximately $100 million at the beginning of the Bank’s 2023–2027 Country Strategy for Djibouti to $221 million after two years of implementation.
Additional reporting by Christin Roby, Communication and External Relations Department
