The African Development Fund Board has approved a $21 million grant to upgrade essential urban infrastructure and enhance climate resilience in Djibouti. The funding, sourced from the Bank Group’s concessional lending window, will support the first phase of the Djibouti Integrated Urban Infrastructure and Climate Change Adaptation Project, approved on 10 December. This phase focuses on rehabilitating seven kilometres of roads and drainage systems in Djibouti city, while introducing nature-based solutions to improve mobility, reduce flooding, strengthen climate resilience, and enhance living conditions for the city’s rapidly growing population.
The project comes at a time when Djibouti faces rapid population growth, insufficient infrastructure, and increasing climate risks. Nearly 73% of the country’s population resides in the capital, where urbanisation driven by rural-urban migration and regional instability has expanded informal settlements, strained existing infrastructure, and limited access to basic services. The city’s coral plains and reclaimed land further increase vulnerability to flooding, as evidenced by Cyclone Sagar in 2018 and the major floods in 2019 and 2020, which exposed critical infrastructure weaknesses.
Late Lawson Zankli, the African Development Bank Group’s Djibouti Program Advisor, highlighted the project’s significance, noting that it represents a major step in strengthening the city’s climate resilience while improving residents’ daily lives. Investments in modern, climate-resilient urban systems aim to transform Djibouti into a safer, more sustainable port city, supporting its strategic role as a regional economic gateway and unlocking opportunities across the Horn of Africa.
Djibouti’s transport and drainage infrastructure also hold critical regional economic importance. Approximately 90% of Ethiopia’s maritime trade passes through Djibouti’s ports, making the city’s infrastructure vital for trade facilitation, employment, and regional competitiveness. Enhancing and climate-proofing these systems is crucial not only for local communities but also for maintaining the efficiency of the Djibouti–Ethiopia corridor.
The project aligns with Djibouti’s National Development Plan and Vision 2035 and advances the infrastructure and resilience pillars of the Bank Group’s Regional Integration Strategy Paper for East Africa. By integrating climate-smart design, inclusive public spaces, and institutional capacity building, the initiative promotes sustainable urban growth and regional competitiveness, while also supporting strategic priorities outlined in the Bank Group’s 10-Year Strategy 2024–2033.
