The African Development Bank and the Government of Djibouti have signed agreements worth $80 million to finance priority road, urban infrastructure, and climate resilience initiatives. The package includes a $22 million African Development Fund grant to rehabilitate seven kilometres of urban roads in Djibouti City under Phase I of the Integrated Urban Infrastructure and Climate Adaptation Project. A further $30 million ADF grant will support rehabilitation of a key segment of the Djibouti–Ethiopia–South Sudan Regional Transport Corridor, aimed at strengthening trade flows and reducing logistics costs across the Horn of Africa.
In addition, two $14 million facilities, a grant and a loan from the Green Climate Fund, will finance the Building Resilience around Food and Livelihoods programme. The initiative focuses on climate smart agriculture, strengthened pastoral systems, and expanded economic opportunities for women and youth.
The financing aligns with Vision Djibouti 2035 and the forthcoming National Development Plan 2025 to 2030. The Bank’s portfolio in Djibouti has expanded from about $100 million at the start of its 2023 to 2027 strategy to $221 million within two years, signalling deepened development engagement.
