New Project to Strengthen Communities and Support Vulnerable Groups in Djibouti

The World Bank approved today a US$31 million project aimed at strengthening the socio-economic foundations of underserved regions in Djibouti by enhancing human capital and expanding economic opportunities.

The Integrated Community Resilience Project will focus on improving basic infrastructure and services, strengthening social safety nets, and boosting economic opportunities for vulnerable communities. By linking safety nets with livelihood opportunities and broader socio-economic development, the project will foster resilience, inclusion, and sustainable economic growth in the Dikhil region and refugee-hosting regions of Obock and Ali Sabieh. It will also strengthen market linkages and integrate value chains, enabling beneficiaries to connect with local, national, and regional markets, while extending support to poor and vulnerable households across Djibouti. The US$31 million allocated for the project includes $9 million from the Window for Host Communities and Refugees of the International Development Association, or IDA – the World Bank’s fund for low-income countries. 

“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,” said Fatou Fall, Joint Resident Representative of the World Bank Group for Djibouti. “By improving access to essential services and economic opportunities, and by specifically addressing the needs of women, the project strives to foster inclusive growth and gender equality across the country.“

Djibouti, strategically located as a bridge between Africa, the Middle East, and Asia, along one of the world’s busiest shipping routes, has recently seen increased food prices and limited availability of essential goods as a result of regional and geopolitical tensions, disproportionately impacting the most vulnerable.

The country also faces significant challenges in service delivery, particularly in rural areas.  And while Djibouti’s social protection system has evolved significantly over the past five years, challenges remain in achieving an effective and sustainable system. 

By focusing on human capital development through improved health, nutrition, and resilience, alongside economic empowerment, the new project lays the foundation for sustainable self-sufficiency among vulnerable groups, including refugees and host communities. This integrated approach not only enhances access to essential services but also empowers communities to drive their own economic growth, fostering a more resilient and prosperous future.

In line with Djibouti’s Vision 2035, this operation directly supports socio-economic development extending beyond Djibouti Ville to underserved regions. It is also aligned with the World Bank Group (WBG) Country Partnership Framework (CPF) and the World Bank Group Gender Strategy, reinforcing commitments to inclusive and sustainable development.

*The International Development Association (IDA) is the World Bank’s fund for the poorest. Established in 1960, it provides grants and low- to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to 1.6 billion people. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged $21 billion over the last three years, with about 61% going to Africa.

* The Window for Host Communities and Refugees supports countries that host significant refugee populations to create medium- to long-term development opportunities for both the refugees and their host communities.

Distributed by APO Group on behalf of The World Bank Group.