Djibouti, ITFC Sign $750 Million Trade Finance Deal

Under the new framework, ITFC will mobilise financing to support Djibouti's economic development agenda, with a focus on sectors considered critical for long-term growth and stability.

The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a US$750 million Framework Agreement with the Republic of Djibouti to strengthen trade finance cooperation and support the country's development priorities over the next four years. The agreement, which covers the period from 2026 to 2029, was signed on the sidelines of the IsDB Group Annual Meetings in Baku by Djibouti's Minister of Economy and Finance, Ilyas Moussa Dawaleh, and ITFC Chief Executive Officer Adeeb Yousuf Al Aama.

Funding to support key development sectors

Under the new framework, ITFC will mobilise financing to support Djibouti's economic development agenda, with a focus on sectors considered critical for long-term growth and stability. The cooperation will target areas such as energy, food security, healthcare and private sector trade finance. The agreement is expected to help ensure the continued flow of essential goods and services while supporting broader economic activity across the country. Officials said the framework will also create opportunities to strengthen local businesses and financial institutions through enhanced access to trade-related financing.

Building on a long-standing partnership

The new agreement builds on nearly two decades of cooperation between ITFC and Djibouti. Since beginning operations in the country in 2008, ITFC has approved approximately US$1.9 billion in trade finance support. Much of this financing has been directed towards strengthening energy security and facilitating the import of strategic commodities needed to support economic development and public services. The partnership has played an important role in helping Djibouti maintain access to essential imports while supporting national development objectives.

Strengthening Djibouti's role as a regional trade hub

Djibouti occupies a strategic position as one of the Horn of Africa's key logistics and trade gateways. The country's economy depends heavily on trade flows, port activities and import financing to sustain growth and meet domestic demand. The new framework is expected to help maintain these critical trade flows while opening new opportunities for cooperation in agriculture, healthcare and financial sector development.

By supporting priority sectors and facilitating access to financing, the agreement aims to contribute to economic resilience, strengthen supply chains and support Djibouti's efforts to advance sustainable development over the coming years.