Diversification is at the heart of our development strategy

Despite economic growth of 6.5%, Djibouti is currently facing budgetary challenges, particularly related to public debt. What is the government doing to ensure sustainable fiscal management? 

Our government is fully aware of the budgetary challenges associated with public debt and is committed to maintaining responsible budgetary management while continuing to make the investments that are essential for growth. To achieve this balance, we have adopted a comprehensive strategy based on strengthening public finances, optimising spending, international cooperation and economic diversification.

The modernisation of the tax administration and the adoption of digital tools have made it possible to better structure tax collection and broaden the tax base. This helps to strengthen the country’s financial autonomy and reduce dependence on external financing, while consolidating long-term fiscal sustainability.

At the same time, we have initiated measures to rationalise public spending in order to ensure the efficient allocation of resources. 

Stricter controls have been introduced to limit unnecessary expenditure, while maintaining the strategic commitments necessary for development. 

With this in mind, we are also mobilising innovative financing, particularly through public-private partnerships and the Djibouti Sovereign Wealth Fund, in order to attract private investment in key sectors, thus reducing the pressure on the public budget.

In an uncertain global context, we have also strengthened our cooperation with international financial institutions in order to obtain more favourable financing conditions and to restructure certain existing debts. 

This approach makes it possible to reduce the debt service burden and to free up budgetary margins for priority investment projects. 

The continuous improvement of debt management strengthens the confidence of investors and financial partners, thus supporting the economic stability of the country.

Finally, our commitment to sustained and diversified economic development remains at the heart of our budgetary policy. Despite the efforts of fiscal consolidation, we maintain strategic investments in port infrastructure, the development of human capital and the energy transition. 

The implementation of renewable energy projects, particularly in solar, wind and geothermal energy, aims to reduce our dependence on energy imports and ensure more sustainable growth. 

At the same time, we are accelerating economic diversification through support for the private sector and innovative technologies, thus strengthening the country’s resilience to global economic fluctuations.

This combined approach of fiscal consolidation, optimised debt management and targeted investments allows us to preserve growth while ensuring fiscal sustainability. We remain committed to deepening these reforms in line with our Vision 2035, in order to ensure lasting and inclusive prosperity for Djibouti.

What actions is your administration taking to control inflation, stabilise food prices, increase household purchasing power and reduce social inequalities?

To contain inflation in the long term, we rely on our monetary system, the Currency Board, which guarantees the stability of the Djiboutian franc against the US dollar. This system considerably limits the inflationary impacts linked to fluctuations in international exchange rates. 

At the same time, we are strengthening our collaboration with international partners in order to anticipate external economic shocks and thus better protect the purchasing power of our citizens in the face of global price variations. We are regulating the prices of essential foodstuffs by temporarily reducing taxes on certain imported products and strengthening controls against speculative practices, while working to secure supply through strategic reserves.

Finally, in order to strengthen purchasing power and social equity, we have reinforced social protection mechanisms by extending direct aid programmes to vulnerable households. 

We actively support employment, entrepreneurship and vocational training, thus facilitating the creation of economic activities that generate income for families. 

Investments in social infrastructure such as health, education and housing also help to sustainably reduce household expenses and strengthen their economic resilience.

These integrated measures aim to guarantee a stable economic framework, effectively protect the purchasing power of citizens, and ensure inclusive growth that benefits all of Djiboutian society.

Djibouti is a trade and logistics hub in East Africa. What are the main infrastructure projects currently underway to further strengthen this position?

In 2025 Djibouti will consolidate its strategic position as a commercial and logistics hub in East Africa thanks to major infrastructure projects, aligned with our Vision 2035. 

These initiatives strengthen our role as a bridge between the region, Asia and the Middle East, while attracting investment to boost trade.

The Damerjog Industrial and Port complex is a strategic development for Djibouti, overseen by Great Horn Investment Holding. This project benefits from investments combining national resources and international partnerships. 

The infrastructure includes an oil terminal, the construction of which is taking place in several phases, with fuel storage facilities under development. This complex aims to strengthen Djibouti’s position as a regional logistics and energy hub, facilitating trade with Ethiopia and other landlocked countries in East Africa. 

The entire project is part of the national strategic vision to diversify and consolidate the country’s port and industrial capacities.

At the same time, the modernisation of our port infrastructure is in full swing. The six existing terminals, including the multi-purpose port of Doraleh, are being upgraded to increase their capacity, while the port of Damerjog, which is under development, is expanding our logistics services. These efforts are in response to growing demand, particularly from Ethiopia, which depends on Djibouti for around 80% of its imports.

On land, the electrified Djibouti-Addis Ababa railway line, operational since 2018, is being continuously upgraded. This work aims to improve its reliability and capacity, reducing logistics costs and consolidating connectivity with our Ethiopian neighbour.

The sea-air multimodal freight project, launched in 2023 with Ethiopian Airlines, Air Djibouti, and Djibouti Industrial Park Operation, continues to develop. This system allows maritime freight, particularly Chinese, to transit through the Djibouti free zone before being redistributed by plane from the international airport, reinforcing our role as a regional hub.

Finally, energy projects support these infrastructures. The Grand Bara solar power plant, developed by Amea Power, has been under construction since 2024 with commissioning scheduled for late 2025. 

For its part, the Lake Assal geothermal project is progressing with its first phase, reducing our dependence on imported fuels and the costs for our ports and free zones.

Given Djibouti’s dependence on port revenues and services, is there a strategy to diversify the economy?

Yes, economic diversification is at the heart of our development strategy. The Djiboutian government has initiated projects in the renewable energy sectors, aiming to reduce energy dependence and stimulate local industry. Investments are also being made in transport infrastructure, such as the modernisation of the Djibouti-Addis Ababa railway line, to improve regional connectivity and attract manufacturing industries. In addition, the development of tourism is being encouraged, capitalising on unique natural sites such as Lake Assal (see page 36).

What is your government doing to attract and retain investors, particularly in non-port sectors, and to ensure that these investments generate more employment?

We have initiated several reforms to improve the business climate, including the simplification of administrative procedures and the creation of a one-stop shop for investors. The transparency and legal security of investments have also been strengthened. 

At the same time, we are putting in place tax incentives and facilities for companies investing in priority sectors such as energy, agriculture and digital technologies. Finally, we are ensuring that these investments generate employment by encouraging partnerships between foreign and local companies.

Who are the key partners with whom international investors can interact?

Djibouti relies on a solid network of partners to support international investors. 

Our ecosystem includes partnerships with France, China, the Gulf countries, the United States and Europe, thus offering a diversity of collaboration opportunities. 

The Ports and Free Zones Authority, the Djibouti Sovereign Wealth Fund and the National Agency for Investment Promotion constitute the institutional trio facilitating the implementation of projects. 

International financial institutions, including the World Bank and the African Development Bank, provide technical and financial support. The Djibouti Chamber of Commerce completes this system by promoting connections with the local economic fabric, thus creating a comprehensive and favourable environment for any investor wishing to establish themselves in our country (see page 26).

What are the main governance reforms to promote transparency, accountability and efficiency of the public service?

We have launched several initiatives to modernise the administration, including the digitalisation of public services, the strengthening of anti-corruption mechanisms and intelligent management of public finances. 

The aim is to ensure a more efficient and transparent administration that serves citizens and businesses.

What role do you see for Djibouti within the African Continental Free Trade Area (AfCFTA)?

Djibouti is a key player in the implementation of the AfCFTA thanks to its strategic position and logistical infrastructure. 

We are working to harmonise our trade policies with the requirements of the AfCFTA and to facilitate the transit of goods between East Africa and other regions of the continent. 

Djibouti intends to play a catalytic role by promoting intra-African trade and attracting investors interested in the continental market.

With one year to go until the elections, what will be the main priorities and orientations of your government?

As the elections approach, our government is focusing on priorities to ensure the country’s sustainable development. We are aiming for robust economic growth, with GDP growth projections of 7% in 2025 and 6.7% in 2026, supported by investments in infrastructure and new technologies. 

Energy diversification is essential, with renewable energy projects underway to strengthen our energy autonomy. We are pursuing reforms to improve the transparency and efficiency of our financial system, in line with international recommendations. 

The launch of the first General Business Census aims to better orient our public policies. In addition, we are intensifying our efforts to combat youth unemployment by strengthening training programmes tailored to the needs of the market.

The Djibouti Sovereign Wealth Fund (FSD) launched the Djibouti Forum last year. What message do you want to convey to investors during the Djibouti Forum 2025? 

The Djibouti Forum 2025 is aimed at attracting investment and stimulating economic growth in Africa. This event will bring together world leaders, investors and political decision-makers to explore investment opportunities and promote economic collaboration.

The Djibouti Sovereign Wealth Fund (FSD), created in 2020, plays a central role in the diversification and modernisation of the country’s economy. The FSD targets sectors such as sustainable natural resources, digital infrastructure, financial services, technology, tourism, health and education, thus contributing to job creation and prosperity for future generations.

We invite investors to actively participate in the Djibouti Forum 2025 to discover the unique opportunities that Djibouti has to offer. By collaborating with the FSD investors can integrate themselves into a growing ecosystem, benefiting from Djibouti’s strategic position as a logistics and commercial hub in East Africa.

By participating in this event, they will contribute to shaping the economic future of Djibouti and the region, while benefitting from promising investment opportunities

Any messages for the guests of the Djibouti Forum 2025 and for our readers? 

This forum is a unique opportunity to discover the vast potential of Djibouti as a hub for investment and economic growth in Africa. Djibouti is a land of opportunity with a business-friendly environment. 

Our commitment to modernisation, economic diversification and sustainable development is at the heart of our vision for the future. We invite you to explore the opportunities that our nation has to offer and to work with us to build a prosperous and inclusive future.

Your active participation and support are essential to realise this vision. Together, let us seize the opportunities available to us and contribute to the harmonious development of Djibouti and the region.

We thank you for your interest and commitment.