Justification and Rationale

In spite of the progress made on the social and democratic fronts, the Republic of Djibouti continues to face structural obstacles, including a weak production base, inadequate infrastructure and, crucially, human capacities performing below their potential. The economy, which saw a four per cent growth in 2011, remains highly dependent on the services sector, which accounts for 80 per cent of gross Domestic Product (GDP). The primary sector – crops, livestock and fishing – accounts for just three per cent of GDP.

Climate change is affecting the water temperature and ocean currents and this in turn is adversely affecting fishery resources. Ecosystems and coastal habitats such as coral reefs and mangroves, which are vital for fish stocks, have shown considerable degradation. Sea level rise and extreme weather events such as storms and floods are affecting all the coastal infrastructure below a five meter elevation, including production and post-production equipment. The current change is also posing a significant threat to the coastal profile due to extreme erosion. The effects of climate change on the availability and migration of fish resources poses an additional risk to fishermen due to lack of infrastructure, equipment and knowledge appropriate to the new conditions.

The coastal region is severely affected by long periods of drought and reduced rainfall and temperature rise caused by climate change. This affects the recharge of groundwater, which is the main source of water resources in the country. Rising sea levels and reduced groundwater recharge lead to an increase in the intrusion of sea water, and thus affect the quality of water resources. An increase in the rate of waterborne diseases in coastal areas has also been reported. All these factors have made coastal rural communities more vulnerable and their livelihoods more precarious. The resulting rural exodus places greater demographic pressures on the coastal zone. In addition, the country is highly dependent on imports, which cover 90 per cent of its food needs. This leaves the population in a precarious situation in terms of food security given the high price of imported foods.

Given the country’s substantial potential in terms of fish resources, the sustainable development of the fishing sector has been identified as a source of growth and an instrument to combat vulnerability and poverty. The project would support the sustainable management of marine resources, contribute to reducing the vulnerability of coastal infrastructures, develop value chains, and enhance the adaptive capacities of institutions and communities.

Geographical Area and Target Groups
The programme will be national in scope, encompassing the rural coastal areas of Obock, Tadjourah, Arta and Loyada. These are among the poorest and most vulnerable regions in the country. Actions will be planned to benefit target groups at the port of Djibouti City, where 80 per cent of fish production and commercialization takes place. The total target direct and indirect population of the programme is an estimated 300,000 people (35,000 households) living in conditions of vulnerability, poverty and food insecurity. Special emphasis will be placed on targeting women and youth.

Key Programme Objectives
The overall objective of the programme is to reduce vulnerability, poverty and food insecurity and increase targeted communities’ resilience to climate change. The specific objective is to implement and scale-up adaptation approaches that promote poverty alleviation and co-management of coastal and marine resources.

Ownership, Harmonisation and Alignment
This project proposal responds to a specific Government request to IFAD which took place in May 2012. The programme will be implemented in close coordination with all the relevant institutions and partners in Djibouti including, among others, the World Bank, the United Nations Development Programme, the Food and Agriculture Organisation,the World Food Programme and the United Nations Environment Programme. The programme will also benefit from knowledge acquired under IFAD-funded projects in the country – the Programme for the Mobilization of Surface Water and Sustainable Land Management (PROMES-GTD) and the Microfinance and Microenterprise Development Project (PDMM).

Components and Activities
The programme focuses on building the adaptive capacity of populations in rural coastal areas and developing climate resilient coastal infrastructures and value chains. It will particularly engage rural coastal communities, fishers, small and micro-sized enterprises (SMEs), women and young people, to reduce their vulnerability and prepare them to deal with the effects of climate change. The programme will support the design and implementation of participatory management plans for ecosystem conservation to alleviate stresses and increase the resilience of fragile habitats. It will contribute to setting up a permanent system of monitoring and evaluation (M&E) of fish resources and an enhanced knowledge of commercial species in order to control the carrying capacity and develop new markets; it will also focus on integrating climate change adaptation within national policies and strategies and enhancing knowledge management, education and communication.

The programme will be structured around four components: i) support to the resilience of coastal habitats and to the co-management of natural resources; ii) support to the reduction of vulnerability of coastal resources and value chains; iii) Enhancing institutional and community adaptive capacities; and iv) management, monitoring and evaluation. The specific activities under each component will be defined during project formulation.

Costs and Financing
The programme will be carried out over a period of six years. Financing will be provided as follows: a loan from IFAD in the amount of US$ 4.1 million on highly concessional terms, and grant funding under the Adaptation for Smallholder Agriculture Programme (ASAP) in the amount of US$6.0 million.

 

Cost table

Financier	IFAD loan	ASAP	Government	Beneficiaries	Total
US$ million	4.1	6.0	1.0	0.5	11.6

Timeframe

Concept note	Detailed design	Quality Enhancement	Design completion	Quality Assurance	EB presentation
December 2012	January-February 2013	April 2013	May 2013	September 2013	December 2013