World Bank approves $31 million project to boost resilience in Djibouti

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Ajay Banga 14th President of the World Bank Group | Official Website

The World Bank has announced the approval of a $31 million project aimed at bolstering socio-economic conditions in underserved areas of Djibouti. The initiative, known as the Integrated Community Resilience Project, seeks to improve basic infrastructure and services, strengthen social safety nets, and enhance economic opportunities for vulnerable communities.

The project will focus on fostering resilience and sustainable economic growth in the Dikhil region as well as refugee-hosting regions of Obock and Ali Sabieh. It aims to connect beneficiaries with local, national, and regional markets by strengthening market linkages and integrating value chains. Additionally, it will provide support to poor and vulnerable households throughout Djibouti.

Of the total funding for the project, $9 million comes from the Window for Host Communities and Refugees of the International Development Association (IDA), which is part of the World Bank’s fund dedicated to low-income countries.

Fatou Fall, Joint Resident Representative of the World Bank Group for Djibouti, stated: “This project is a significant step towards enhancing the socio-economic resilience of Djibouti's most vulnerable communities and strengthening adaptive social protection systems for those that are extremely poor or at risk of falling into poverty."

Djibouti faces challenges such as increased food prices and limited availability of essential goods due to regional tensions. The country also struggles with service delivery issues in rural areas despite advancements in its social protection system over recent years.

The new project aims to develop human capital through improved health, nutrition, resilience initiatives, and economic empowerment. It seeks to lay a foundation for sustainable self-sufficiency among vulnerable groups including refugees and host communities. This approach not only improves access to essential services but also empowers communities to drive their own economic growth.

Aligned with Djibouti’s Vision 2035 strategy, this operation supports socio-economic development beyond Djibouti Ville into underserved regions. It aligns with both the World Bank Group Country Partnership Framework (CPF) and Gender Strategy commitments toward inclusive development.