By Shire Abdi - Reporter
Djibouti, 21 April,226 Djibouti is seeking to build strategic fuel reserves covering more than six months of consumption, as disruptions linked to Middle East tensions weigh on global energy supply, the government said.
The plan was discussed during talks between Djibouti and the International Islamic Trade Finance Corporation (ITFC), part of the Islamic Development Bank Group, a statement from Ministry of Energy said on Monday.
Energy Minister Yonis Ali Guedi met an ITFC delegation led by Pape Sy in Djibouti as part of a multi-day working visit focused on strengthening energy cooperation.
Discussions centred on reviewing ongoing projects with the Djibouti Hydrocarbon Company (SIHD) and preparing a new partnership strategy for 2026–2030.
Projects under consideration include the establishment of strategic petroleum reserves, construction of an oil refinery, and development of a barrel manufacturing plant aimed at exporting bitumen to regional markets.
“We are suffering the economic and social consequences of this crisis … and need to establish a strategic stock covering more than six months,” Guedi said, referring to the impact of global energy disruptions.
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Djibouti is also looking to position itself as a regional energy hub in East Africa by strengthening domestic oil infrastructure, the minister added.
SIHD Director General Dabar Adaweh Ladieh cited rising international procurement costs and financing pressures, calling for long-term concessional funding to mitigate the impact of the energy crisis.
The head of the ITFC delegation said he was “receptive” to Djibouti’s requests and reaffirmed the institution’s willingness to expand cooperation, including potentially increasing financing lines.
ITFC said it has injected more than $2 billion into Djibouti’s economy since 1979, supporting key sectors including energy and climate resilience.
The delegation also requested feasibility studies for the fuel storage project to accelerate financing procedures.
The talks come as shipping disruptions and geopolitical tensions, particularly around the Strait of Hormuz, continue to affect global supply chains.