AfDB and Djibouti Seal $80 Million Deal to Boost Infrastructure and Food Security
The African Development Bank (AfDB) and the Government of Djibouti have signed financing agreements worth US$80 million to support major investments in road infrastructure, urban development and climate-resilient agriculture.
The agreements were signed on 5 February by Djibouti’s Minister of Economy and Finance in charge of Industry, Ilyas Moussa Dawaleh, and AfDB Director General for East Africa, Alex Mubiru. AfDB Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo, also attended the signing ceremony.
Under the first agreement, Djibouti will receive a US$22 million grant from the African Development Fund (ADF) to rehabilitate seven kilometres of urban roads in Djibouti City. The works form part of Phase I of the Integrated Urban Infrastructure and Climate Adaptation Project, aimed at improving mobility and climate resilience in the capital.
A second agreement provides a US$30 million ADF grant for the rehabilitation of a key regional trade route under the Djibouti–Ethiopia–South Sudan Regional Transport Corridor Project. The project is expected to enhance regional integration by facilitating cross-border trade, reducing transport costs and improving the movement of goods and people across the Horn of Africa.
Two further agreements, comprising a US$14 million grant and a US$14 million loan from the Green Climate Fund, will support the Building Resilience around Food and Livelihoods (BREFOL) programme. The initiative seeks to strengthen food security and climate resilience through climate-smart agriculture, improved pastoral and agro-pastoral systems, and expanded economic opportunities for women and young people.
Minister Dawaleh said the agreements reflect Djibouti’s commitment to inclusive and resilient development. “By investing in roads and agriculture, we are not only building infrastructure, but also securing the future of our most vulnerable communities,” he said.
Mr Mubiru said the financing aligns with Djibouti’s long-term development priorities. “These agreements reaffirm our support for Vision Djibouti 2035 and the forthcoming National Development Plan 2025–2030,” he said.
The new financing significantly expands AfDB’s portfolio in Djibouti, which has grown from about US$100 million at the start of the Bank’s 2023–2027 Country Strategy to US$221 million after two years of implementation.
