AfDB Approves $8m Trade Guarantee to Support Djibouti’s Industry and Green Energy

The facility will support imports of industrial inputs, production machinery, and telecommunications equipment that contribute to Djibouti’s industrial development.

Businesses in Djibouti will receive fresh support to finance imports of machinery, production inputs, and essential goods through an $8 million trade guarantee facility approved by the African Development Bank Group. The bank's Board of Directors approved the facility for Exim Bank Djibouti on 7 October 2026 in Abidjan.

The five-year facility will serve large local enterprises and small and medium-sized businesses, including those led by women. Its focus includes green energy and manufacturing, with support for imports expected to help develop domestic industry and improve access to goods needed for food and nutritional security.

Helping Businesses Finance Machinery and Essential Imports

For businesses investing in production, access to trade finance can determine whether they can obtain the equipment and materials they need. The facility will support imports of industrial inputs, production machinery, and telecommunications equipment that contribute to Djibouti's industrial development.

The support also extends to essential goods for the population, connecting trade finance with the country's food and nutritional security needs. This gives the operation a role in both strengthening productive capacity and facilitating imports that meet everyday needs.

Under the arrangement, the African Development Bank will provide guarantees of up to 100% to confirming banks for eligible trade finance instruments issued by Exim Bank Djibouti.

Lamin Drammeh, Head of the Trade Finance Division at the African Development Bank, said the guarantees would facilitate the confirmation of letters of credit and similar instruments for large local enterprises and SMEs. This backing helps address the risk taken on by confirming banks when they support payments in international trade.

Green Energy and Manufacturing Among the Priorities

The facility targets green energy and manufacturing, two sectors central to its intended contribution to Djibouti's industrialisation. It will support projects assessed as having lower vulnerability to climate risks and minimal impact on greenhouse gas emissions.

Those priorities connect the financing of imports with the development of businesses and infrastructure that can support the country's economic growth. Access to production machinery and other inputs will be an important part of turning that financial support into practical investment.

The operation aligns with the African Development Bank's 2023–2027 Country Strategy Paper for Djibouti, specifically its focus on developing socio-economic infrastructure in the energy and transport sectors.

Exim Partnership Extends Regional Trade Support

The collaboration builds on the African Development Bank Group's existing partnership with Exim Bank Tanzania, the parent company of Exim Bank Djibouti. Exim Bank Djibouti Managing Director Jacky Kayiteshonga welcomed the agreement and linked it to the group's wider approach to supporting businesses across East Africa.

"This partnership is in line with the Exim Group's strategy, of which financing international trade is one of the main pillars of our intervention strategy in East Africa," she said. Over its five-year term, the facility is expected to help Exim Bank Djibouti support more trade transactions for local companies. The inclusion of SMEs and women-led businesses gives the program a broader reach across the country's business community, alongside its support for larger enterprises.