The World Bank today approved a US$10 million credit from the International Development Association (IDA), the World Bank’s program for the poorest countries, in support of Djibouti’s efforts to accelerate the digital transformation and build a more inclusive digital economy.
While Djibouti has made significant inroads in becoming a digital hub in regional connectivity and data markets, many Djiboutians do not fully benefit from the country’s connectivity infrastructure.
The new Digital Foundations Project aims to ensure that more citizens and businesses have access to quality and affordable internet by developing an enabling environment for the gradual introduction of competition and private-sector investment in information and communication technology (ICT), and by fostering the uptake of digital skills and services.
The project is aligned with the new Country Partnership Framework and Djibouti’s Vision 2035, which recognize the role of ICT in economic growth.
“Accelerating digital transformation in Djibouti is an urgent necessity for post-COVID-19 recovery,” said Ilyas Moussa Dawaleh, Djibouti’s Minister of Economy and Finance in charge of Industry. “Stimulating economic growth, innovation, and job creation through technology is an opportunity that will benefit present and future generations.”
The new financing will strengthen the capacity of the public sector, specifically the Ministry of Communication, with responsibility for Posts and Telecommunications, the Delegate Ministry in charge of Digital Economy and Innovation, and the Multi-sectoral Regulatory Authority of Djibouti, to promote the digital economy and market competition. It will provide support to micro, small and medium enterprises (MSMEs), while boosting Djibouti’s resilience to external shocks, including disaster response and climate monitoring.
“COVID-19 has highlighted the importance of digital technologies,” said Boubacar-Sid Barry, World Bank Resident Representative in Djibouti. “With this new project, the Bank supports Djibouti in its efforts to address vulnerabilities and create a favorable environment for the development of an inclusive and safe digital economy.”
The project will also support the development of digital skills programs for entrepreneurs and the integration of basic digital skills into school and university curricula. It is anticipated that the project will benefit all segments of Djibouti’s economy and society, including the public and private sectors, women, youth, and underserved rural populations. Citizen engagement will be an essential component of the program.
According to Eric Dunand and Tim Kelly, co-Task Team Leaders, “The project will help Djibouti to harness its digital potential.” A high-performing digital economy in Djibouti, based on a well-developed ICT sector, will have many benefits. The wider use of digital technologies will help the government improve service delivery, offer youth more job opportunities, and entrepreneurs, more business prospects in diversified economic sectors.
The World Bank’s portfolio in Djibouti consists of 14 projects totaling US$258 million in financing from IDA. The portfolio is focused on education, health, social safety nets, energy, rural community development, urban poverty reduction, the modernization of public administration, governance, and private sector development with an emphasis on women and youth.