IFC Strengthens Djibouti's Economic Growth with Projects to Boost SME Financing and Regional Trade

In collaboration with the Central Bank of Djibouti, IFC will spearhead the modernization of the country's movable collateral registry.

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has unveiled two significant initiatives aimed at fostering sustainable private sector growth in Djibouti. These agreements will enhance access to finance for small- and medium-sized enterprises (SMEs) and strengthen regional trade and food security through improved logistics at Djibouti’s main port.

In collaboration with the Central Bank of Djibouti, IFC will spearhead the modernization of the country's movable collateral registry. This initiative seeks to address the barriers many SMEs face, particularly those run by women and young entrepreneurs, who often operate informally and lack traditional collateral needed for bank loans.

The project will focus on modernizing the regulatory frameworks for registering and enforcing security in movable property, enabling SMEs to use assets like equipment, inventory, and receivables as collateral.

Ahmed Osman, Governor of the Central Bank of Djibouti, remarked, “The movable collateral registry is a transformative financial tool for SMEs in Djibouti, helping them overcome the challenges of insufficient collateral. We are deeply grateful to IFC for supporting this modernization, which will expand financing options for small and medium enterprises.”

Improving Food Security with Modern Port Storage Facilities

IFC’s second partnership is with Tiryaki Agro Gida Sanayi Ve Ticaret (Tiryaki Agro), Türkiye’s largest agribusiness exporter. This initiative focuses on developing a state-of-the-art port storage facility in Djibouti to streamline the handling of key food commodities like wheat and grains. IFC will provide critical analysis, operational planning, and stakeholder engagement to support the project’s development.

The storage facility is expected to reduce vessel transit times, improve supply chain logistics, and facilitate regional trade, bolstering food security in Djibouti and neighboring countries.

Süleyman Tiryakioğlu, CEO of Tiryaki Agro, stated, “As we celebrate Tiryaki Agro’s 60th anniversary, this collaboration with IFC is a testament to our dedication to Djibouti’s economic and logistical growth. We are committed to enhancing trade infrastructure and contributing to regional food security.”

IFC’s Broader Vision for Djibouti’s Development

Sérgio Pimenta, IFC Vice President for Africa, emphasized Djibouti’s strategic importance in the Horn of Africa, saying, “IFC is dedicated to supporting Djibouti’s sustainable development. These partnerships will expand SME financing opportunities and reinforce Djibouti’s position as a regional logistics hub, driving inclusive growth and economic resilience.”

Alignment with Strategic Frameworks

These initiatives align with the World Bank Group’s Country Partnership Framework for Djibouti (FY2022-26), which focuses on reducing poverty through inclusive, private sector-led growth, job creation, and human capital development. The projects also reflect IFC’s Private Sector Diagnostic for Djibouti, which identifies key reforms to unlock private investment in transport, logistics, and financial services.

Expanded Impact and Regional Goals

By addressing SME financing and enhancing port logistics, these projects aim to:

• Empower SMEs: Increase access to financing for small businesses, fostering entrepreneurship and job creation.
• Strengthen Food Security: Enhance the efficiency of food supply chains, reducing costs and improving accessibility for the region.
• Boost Regional Trade: Position Djibouti as a competitive logistics hub in East Africa.

Through these initiatives, IFC continues to contribute to Djibouti’s vision of sustainable, inclusive economic growth.