Increasing exposure to extreme weather events in Djibouti poses significant risks to both livelihoods and the nation's long-term economic growth, according to a report by the World Bank Group. The report, titled Djibouti Country Climate and Development Report (CCDR), warns that without prompt action, Djibouti could lose up to 6 percent of its GDP annually by 2050.
The CCDR outlines a roadmap for transforming climate challenges into opportunities for sustainable growth and economic diversification. It emphasizes infrastructure investment, water and food security actions, and energy sector reform as crucial areas for development.
Stéphane Guimbert, World Bank Country Director for Djibouti, stated: "Climate change is no longer a distant threat but an immediate challenge for Djibouti. But with identified strategic investments and policy actions, the country can leverage the important investments it has already made to pave the way towards sustainable, low-carbon development."
Djibouti's role as a major port in the Horn of Africa highlights the importance of resilient transport infrastructure not only for itself but also for neighboring countries. Economic activities concentrated in coastal areas like Djibouti City make protection against sea-level rise a priority.
The International Development Association (IDA) plays a key role in supporting Djibouti’s adaptation efforts over the next 25 years. Ilyas Moussa Dawaleh, Minister of Economy and Finance of Djibouti, noted: "This report emphasizes the opportunity for Djibouti to accelerate investments as we move to the goal of 100 percent renewable energy very soon."
Djibouti has invested in infrastructure such as ports, railways, roads, clean energy generation, water desalination plants, and pipelines. However, additional investments exceeding $2.8 billion are needed along with capacity building and policies encouraging private sector participation.
Cheick-Oumar Sylla from IFC commented on private sector involvement: "Private sector solutions are indispensable to support Djibouti’s climate adaptation and resilience ambitions."
The World Bank Group's CCDRs integrate climate change with development considerations to help countries prioritize impactful actions while meeting broader goals. These reports provide pathways for reducing greenhouse gas emissions and enhancing climate resilience.