Alongside investment in transport infrastructure, Djibouti’s economy has benefitted significantly from the ongoing expansion of its financial services sector. Liberalisation of banking activity since 2006 has made the country an attractive location for banks and insurance companies aiming to satisfy the growing demand linked to logistics services and trading. With a population of slightly more than 1m people, Djibouti remains a relatively small domestic market. But the low penetration of financial…
From The Report: Djibouti 2023
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Djibouti’s financial services sector is undergoing notable reforms that aim to support broader economic growth. There is a focus on expanding technological infrastructure to enhance efficiency and accessibility in banking, capital markets and insurance. Updated regulations are being implemented to diversify the market, attract more players and foster healthy competition. Microfinance is being leveraged to boost the penetration of financial services, particularly among underserved segments of the population. Additionally, new laws are targeting the reduction of non-performing loans, aiming to strengthen the financial stability of institutions and promote responsible lending practices. These initiatives collectively contribute to the growth and modernisation of Djibouti’s financial services industry, supporting economic development and financial inclusion.
This chapter contains interviews with Ahmed Osman Ali, Governor, Central Bank of Djibouti; Mohamed Aden, General Manager, Assurance AMERGA; and Jama Hersi Abdi, General Manager, Salaam Africa Bank.