US$ 53.77 million
Total Project Cost
US$ 35.59 million
Total IFAD financing
Djibouti is a small dry country strategically-located in the Horn of Africa at the southern entrance to the Red Sea.With a population of 887,900 in 2015, according to the World Bank, its economic activity centres upon providing port services, including for its land-locked neighbour Ethiopia. This drove economic growth estimated at 6.5 per cent in 2016.
With less than 1,000 km2 of arable land among its 23,200 km2, and an average annual rainfall of 5.1 inches, Djibouti has a chronic food deficit and depends on imports to meet its food needs. This leaves it highly sensitive to external shocks, including spikes in food and fuel prices.
The national poverty rate is 79 per cent, and outside the capital, Djibouti-ville, it reaches 94.2 per cent, and the rural rate of extreme poverty is 72.5 per cent. In 2006, the national rate of acute malnutrition was estimated at 20.4 per cent, and about 20 to 40 per cent of the rural population was estimated to be either food-insecure or highly vulnerable to food insecurity.
About 30 per cent of the population are rural yet farming is underdeveloped, generating just 4 per cent of GDP. Arable land is scarce, so farming is based upon pastoralism. Improving access to water is the main priority for rural communities and for raising livestock production. Groundwater resources are widely exploited, so the Government is focusing on capturing more surface water.
In Djibouti, IFAD loans support efforts to improve the living conditions of the rural poor.
Activities target rural communities that are severely affected by adverse economic and climate conditions.
IFAD takes into account community priorities and the needs of particular groups, such as young people and women.
Key activities include:
- community-driven rural development through participation of beneficiaries in decision making, and grassroots capacity building;
- diversification of livelihood systems; and the
- mobilization of financial resources through the promotion of community-based financial institutions.
Djibouti is a small country where more than 23 per cent of the population live in extreme poverty.
Agricultural generates only 4 per cent of GDP, but is the main source of income for rural communities, home to about 30 per cent of the total population.
Since the early 1980s, IFAD has invested a total of US$30.1 million in seven projects and programmes in Djibouti, benefiting 41,850 households.
Projects and Programmes
IFAD and Djibouti sign agreement to tackle Djiboutis problem of thirst in rural areas
Managing natural resources comprehensively and sustainably to combat poverty in pastoral communities
ASAP Djibouti factsheet
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.