US$20 million Grant to Help Djibouti Mitigate Food Security Risks Resulting from Multiple Crises and Climate Change

WASHINGTON, November 4, 2022 - The World Bank on October 26 approved an International Development Association (IDA) grant of US$20 million to help Djibouti mitigate food security risks posed by food supply shocks and severe droughts affecting the country.

The Djibouti Emergency Food Security Crisis Response Project will establish an emergency food stock to allow the Government to respond to potential food shortages in the event of market shocks, thus reducing the impact of such shocks particularly on the poor. The project will also directly target drought-affected rural communities across the country and support approximately 8,000 households, including farmers and livestock herders, through improved access to drinking and irrigation water as well as livelihood restoration activities. The project is estimated to reach approximately 21% of the total rural population of Djibouti, with priority given to women-headed households and the youth.

Djibouti - which meets up to 90% of its food needs through imports - has been severely impacted by the repercussions of the war in Ukraine and resulting food supply disruptions. The COVID-19 pandemic and the conflict in neighbouring Ethiopia have led to a deterioration in the country's economic situation and affected consumer purchasing power and food availability. Furthermore, Djibouti's high vulnerability to climate change poses additional risks to the country's food and nutrition security. Djibouti is one of the driest countries in the world and is currently experiencing drought conditions caused by rising seasonal temperatures and insufficient rainfall with serious implications for water availability, livestock and vegetable production and, consequently, household incomes.

"Djibouti has been particularly affected by the recent global food supply disruptions," said Boubacar-Sid Barry, World Bank Resident Representative in Djibouti. "The new project will help the country ensure the availability of a minimum level of basic food commodities as one of the instruments to strengthen its capacity to withstand future food supply shocks."

The Project will support drought-affected farmers and livestock-holding households to restore their productive assets and initiate climate adaptation activities for sustained food security. Project activities will finance agricultural inputs to support crop and fodder production; small greenhouses equipped with drip irrigation to help increase agricultural production and provide means of adaptation to climate change; as well as assets and essential inputs for livestock production. Project activities will also include training programs for farmers and livestock herders on climate resilient practices and technologies.

"The project will support public and private sector capacity building and technical assistance to improve the country's resilience to future shocks," said Eva Hasiner, World Bank Task Team Leader for the project. "This includes strengthening the capacity of the Government to anticipate food security crises and provide a rapid response, including the management of an emergency food stock, and developing the skills of both the public and private sectors on price risk management."

The project supports the Government of Djibouti's response to the multiple crises and the preparation of a national food security crisis preparedness plan to ensure an effective and coordinated response to future crisis. The project also complements the recently approved Emergency Social Protection Crisis Response Project which aims to provides cash transfers to targeted households and strengthen social protection and community resilience mechanisms to respond to future crises.

The World Bank in Djibouti

The World Bank's portfolio in Djibouti consists of 20 projects, worth a total US$438.8 million in IDA financing. The portfolio focuses on education, health, social safety nets, energy, rural and urban development, modernizing public administration, digital development, strengthening governance and regional infrastructure, and on private sector development, with an emphasis on women and youth.

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