Washington, June 8, 2018 – The World Bank announced today new support for 6,000 potential youth and women entrepreneurs, as part of Djibouti’s efforts to promote entrepreneurship as an engine of growth and job creation. With a US$15 million credit from IDA, the World Bank’s fund for the poorest countries, the project will encourage new entrepreneurs with a combination of training and access to finance, the consolidation and expansion of key business services to make them easier to access, and support with identifying and linking entrepreneurs to competitive value chains.
The Women and Youth Entrepreneurship Project will support more than 2,300 small and medium sized businesses access enterprise development services. Developing new growth sectors and diversifying the economy are essential for Djibouti to keep its current growth rate and create jobs.
“Most of our population is under 35, and with the right opportunities, these young people will be an engine of growth and transformation,” said Ilyas Moussa, Djibouti’s Minister of Economy and Finance in-charge of Industry. “In partnership with the World Bank, we have worked on improving the business environment, and with this new project will help unleash the extraordinary capacities of Djibouti’s youth, who are full of talents. It’s all about a shift in mindsets that will create a new generation of talented and vibrant Djiboutian leaders.”
The project will fund programs to encourage women and young people to become entrepreneurs, provide the coaching and training needed to either launch or work at a small or medium sized business, and propose business plan competitions and targeted grants.
“This project seeks to harness the transformative potential of women and young entrepreneurs,” said Dr. Asad Alam, World Bank Country Director for Egypt, Yemen and Djibouti. “Creating new economic opportunities for them will help boost innovation, promote job creation, and raise living standards for all in Djibouti.“
Along with training and financial incentives, the project will also provide support for linking entrepreneurs with markets. The project will provide technical advice to help create supply chain linkages and the development of export marketing.
“An integrated suite of services, which targets both the production and marketing of products or services, can play a key role in raising the productivity of micro, small and medium businesses,” said Roya Vakil, World Bank Financial Sector Specialist and co-Task Team Leader for the project. ”Offering youth and women a pathway for the future through entrepreneurship skills training enables them to build a sense of agency and foster their communities’ resilience,” added Benjamin Herzberg, World Bank Senior Private Sector Specialist and co-Task Team Leader.
The World Bank’s portfolio in Djibouti consists of ten IDA-funded projects totaling US$120 million. The portfolio is focused on social safety nets, energy, rural community development, urban poverty reduction, health, education, modernization of public administration, governance and private sector development, with particular emphasis on women and youth.