The World Bank has unveiled a comprehensive report on Djibouti's digital economy, shedding light on the country's potential for growth and development in this sector. The report, titled "Djibouti Digital Economy Diagnostic," explores the challenges and opportunities present in Djibouti's digital landscape, underscoring the importance of digital infrastructure development, broadband access and affordability, and requisite digital skills for socio-economic advancement.
The document further emphasizes the significance of telecommunications and data infrastructure development, digital platforms, financial services, and entrepreneurship as key pillars of the digital economy. It provides an overview of the current state of affairs in these areas while suggesting strategies for future growth.
Despite notable progress in the digital sector, Djibouti still grapples with issues that prevent it from fully harnessing its technological potential. These include limited investments in Information and Communication Technology (ICT) within the country and barriers to affordability and accessibility of digital services. Nevertheless, recent initiatives such as the establishment of the Multisectoral Regulatory Authority of Djibouti and the Ministry of Digital Economy and Innovation (MDENI) underscore the government's commitment to overcoming these hurdles.
"Djibouti has made significant progress in its digital infrastructure, but there is still room for improvement in terms of affordability, quality and access to digital services,” said Fatou Fall, World Bank Resident Representative in Djibouti. “Despite being one of the smallest countries in Africa in terms of size and population, Djibouti plays a crucial role in providing high-speed internet access to neighboring countries.”
The report urges cooperation among government entities, private sector organizations, and civil society to address these challenges while capitalizing on opportunities to bolster Djibouti's digital economy. It highlights collaboration, capacity building, clear governance frameworks as essential elements for driving this transformation.
Data governance also features prominently in this report as it underscores increasing data usage to better understand citizens' needs and foster public trust. "The government is dedicated to tackling these challenges and propelling digital transformation forward. Our national flagship initiative, the 'Smart Nation program,' represents a move toward a more unified and comprehensive approach of digital transformation,” said Ilyas Moussa Dawaleh, Minister of Economy and Finance, in charge of Industry in Djibouti.
The report also points out the importance of digital skills among the workforce, recommending comprehensive training programs for public officials and improving digital skills among the general population, particularly young graduates and entrepreneurs.
The World Bank's portfolio in Djibouti comprises 22 projects worth approximately US$463 million in IDA financing and trust funds. These projects focus on various sectors including education, health, social safety nets, energy, rural and urban development, modernizing public administration, digital development, strengthening governance infrastructure, and private sector development with a particular emphasis on women and youth.