By Abukar Osman - Reporter
DJIBOUTI, July 30 2026 – The African Development Bank (AfDB) has urged Djibouti to mobilize more public and private financing to support its economic transformation, according to Djiboutian News Agency (ADI), citing the bank's 2026 Country Report.
The report, titled "Mobilizing Large-Scale Development Financing in Djibouti in a Fragmented World," was presented on Wednesday during a ceremony chaired by Economy and Finance Minister Ilyas Moussa Dawaleh.
The recommendations come as Djibouti's economic outlook remains positive. According to the African Development Bank's latest Djibouti Economic Outlook, the country's economy is projected to grow 6.5% in 2026 and 6.8% in 2027, driven by continued investment in infrastructure and the services sector.
Inflation is forecast to average 2.4% in 2026 before easing to 1.7% in 2027, while the fiscal deficit is projected at 1.9% of gross domestic product this year.
According to ADI, the report said Djibouti's strategic location at the entrance to the Red Sea, expanding port and logistics infrastructure and its role as a regional trade and services hub provide strong foundations for economic growth.
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However, the report said those advantages would need to be matched by stronger domestic resource mobilisation, improvements to the business environment and greater participation by the private sector to meet the country's growing development financing needs, ADI reported.
Speaking by video conference during the launch, AfDB Chief Economist Guy Blaise Nkamleu said African economies needed to adapt their financing strategies to an increasingly uncertain global environment, according to ADI.
The bank's economist in Djibouti, Malik Mohamed Garad, presented the country's macroeconomic outlook and outlined recommendations including diversifying funding sources, developing innovative financial instruments and strengthening partnerships with international financial institutions to improve resilience against external shocks, ADI reported.
ADI said the report also served as a platform for discussions between government officials, development partners, representatives of the Central Bank of Djibouti, private-sector leaders, academics and civil society on financing more inclusive, sustainable and job-creating economic growth.