WASHINGTON, March 27, 2026 - The World Bank Group has approved a US$25.75 million grant from the International Development Association (IDA) to support the Djibouti Economic Diversification Program, the country's first Program-for-Results (PforR) financing. The program aims to broaden economic opportunities, strengthen the private sector, and create jobs for Djiboutians.
The operation represents the first phase of a longer-term World Bank Group engagement with Djibouti, with a total financing envelope of US$75.75 million over the period 2026-2034. By linking disbursements to clearly defined reform milestones, the PforR instrument places a strong emphasis on delivery and measurable outcomes. It is also the first operation in the region to be co-led by the World Bank and the International Finance Corporation (IFC), combining public sector reform support with parallel IFC advisory services and investments - creating an integrated platform to attract private capital and scale up job creation over time.
"This operation reflects the depth and ambition of the World Bank Group's partnership with Djibouti," said Fatou Fall, World Bank Group Joint Resident Representative for Djibouti. "As the country's first results-based financing operation and the first in the region co-led by the World Bank and IFC, it positions Djibouti to attract private investment and translate reforms into tangible opportunities for its people."
The program focuses on three complementary areas in support of the Government's agenda under Djibouti Vision 2035 and the National Development Plan 2025-2030: strengthening the governance of state-owned enterprises (SOEs) and access to public procurement; improving the business and investment climate; and enhancing the competitiveness of small and medium enterprises (SMEs), including through expanded access to finance and business development services.
"Djibouti's economic diversification is not a choice and no longer an aspiration. It is a strategic necessity that defines our future," said Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry of the Republic of Djibouti. "We must decisively shift beyond the legacy models of ports and foreign bases to build a resilient, competitive, and investment driven economy. Through this program, we are driving structural and transformative reforms to unlock private sector potential, crowd in high-quality private direct investments, and deliver real and inclusive opportunities for our people. Of course, fully aligned with the ambitions of Djibouti Vision 2035."
About IDA
The International Development Association (IDA) is a part of the World Bank and focuses on assisting low-income countries. Established in 1960, IDA complements the World Bank's original lending arm, the International Bank for Reconstruction and Development (IBRD). It comprises 175 countries. IDA provides grants and low- to zero-interest loans that help countries invest in their futures, improve lives, and create safer, more prosperous communities worldwide. IDA is one of the largest sources of assistance for 78 low-income countries and the single largest source of donor funds for essential social services in these nations.
About IFC
The International Finance Corporation (IFC), a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. IFC works with governments and businesses to create markets, mobilize private investment, and promote sustainable growth that creates jobs and improves lives.
