Overview

  • Djibouti is one of the smallest countries in Africa. It covers an area of 23,200 square kilometers and is home to a population of about 864,617 (2011). As in other small states, the size of Djibouti’s economy limits its ability to diversify production and increases its reliance on foreign markets, making it more vulnerable to external market downturns and hampering access to external capital. With less than 1,000 square kilometers of arable land (0.04 percent of the country’s total land area) and an average annual rainfall of only 130 millimeters, Djibouti depends completely on imports to meet its food needs.

    Strategically located at the southern entrance to the Red Sea, Djibouti forms a bridge between the Middle East and Africa. The country is adjacent to some of the world’s busiest shipping lanes. Djibouti hosts military bases for France, the United States, Japan, and the North Atlantic Treaty Organization (NATO), as well as other foreign forces that are located in the country to support anti-piracy efforts. 

    Djibouti’s economy is currently driven by the country’s state-of-the-art port complex, which is among the most sophisticated in the world. Trade through Djibouti’s port is expected to grow rapidly in parallel with the expanding economy of its main trading partner, Ethiopia. In addition, Djibouti is endowed with natural assets for the development of tourism, untapped marine resources that could support growth in artisanal fishing, and a significant infrastructure of undersea telecommunications cables on which it could draw to develop new service industries. Energy trade could also be a source of growth for the country. 

    Djibouti has enjoyed rapid and sustained growth over the past fifteen years with per capita GDP increasing by 3.1 percent on average per annum in 2001-2017. Despite the growth however, an estimated 16 percent of the population lived below the international poverty line of US$1.90 per day in 2017. The most recent official national extreme poverty rate, calculated using a survey conducted in 2017, stood at 21.1 percent. 

    Last Updated: Oct 11, 2018

  • The 2014-2017 Country Partnership Strategy combines the resources and expertise of the World Bank’s International Development Association (IDA), International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). The Strategy supports the government’s vision 2035 to reduce extreme poverty and build the foundations for shared growth by harnessing the country’s human and economic potential. The Strategy rests on two pillars—reducing vulnerability and strengthening the business environment—while focusing on institutional strengthening and gender as cross-cutting themes. 

    The updated Strategy -- the Djibouti Country Partnership Strategy Performance and Learning Review – was approved by the Bank’s Board in May 2016. It reflected the progress that has been made in the implementation of the ongoing Strategy. The Strategy deepened World Bank Group engagement in areas where significant results have been achieved through earlier interventions and to respond to the government’s priorities, as defined in its long-term development strategy, Djibouti Vision 2035. 

    As of September 2018, the active portfolio for Djibouti comprises eleven IDA projects, for a total commitment of US$150 million. World Bank Group (WBG) teams have continued to leverage IDA resources through recipient executed trust funds with a net commitment value of about $17 million. Trust-funded activities are fully aligned with, and complementary to, the IDA-funded portfolio. The program – both IDA and trust funds – focuses on social safety nets, energy, rural community development, urban poverty reduction, health, education, governance and private sector development.  All projects place particular emphasis on women and youth.

    Last Updated: Oct 11, 2018

  • Social Protection:

    An innovative social safety net project reached 18,000 women and children who participated in the nutrition program and provided over 500,000 person-days of short-term employment opportunities. Under the nutrition for pregnant women and mothers of young children component, about 17,900 beneficiaries have been reached with basic preventative nutrition services. The project is also supporting the national social registry and national social protection strategy. The registry currently contains information on about 47,000 households, exceeding the target of 20,000. The collection of biometric data on these households has recently been launched. Registry data is currently being shared between 6 programs. The program has contributed to diet diversification and improved nutrition practices among beneficiary households and strengthened female empowerment. 

    Rural Development:

    The ongoing Rural Community Development and Water Mobilization Project (PRODERMO, 2012-2019) increased access of rural communities to water and enhance their capacity to manage water and agro-pastoral resource. Almost 7,000 households benefitted from the water mobilized to date  and 60,890 head of livestock have gained access to more secure water supply. Closed to 2,282 persons trained on water resource management and agro-pastoral resources management, and 1.5 million cubic meter of water infrastructure are being constructed or rehabilitated.

    Urban Poverty Reduction Program:

    The ongoing Urban Poverty Reduction Program supports upgrading of urban services and infrastructure in Quartier 7 in Djibouti City. Results have been impressive. 37,400 beneficiaries have directly benefited from access to basic services, urban mobility, or flood management, 61,725 person/days of short-term employment have been created and 3.7 km of urban road has been constructed.

    Improving Health Sector Performance:

    The ongoing Improving Health Sector Performance improved the utilization of quality health care services for maternal and child health. Up to 1,543,826 beneficiaries received quality health care service, 61,180 women received between 2 to 4 prenatal visits, and 45.5% of children were fully immunized before their first birthday. Furthermore, five first degree community health centers have been upgraded to second level of care polyclinics providing 24-hour emergency and delivery care and outpatient services servicing a population close to 100,000.

    Last Updated: Oct 11, 2018

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LENDING

Djibouti: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments


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