WASHINGTON, USA, 17 January 2025 -/African Media Agency(AMA)/- The World Bank approved today a $20 million grant from the International Development Association (IDA) for a new project that will help Djibouti improve its public finance governance and digital services to support better economic conditions for the population.
The Economic and Financial Governance Project aims to improve tax administration efficiency, enhance transparency in expenditure management, and increase citizen access to digital services. To achieve these objectives, the project will focus on strengthening tax policy formulation and tax administration, along with other core government systems, as well as oversight of public finances and civil society engagement. A significant proportion of the country’s citizens, along with several public institutions, are expected to benefit from the project’s implementation.
Djibouti’s government has made progress in modernizing its public administration, although much remains to be done in terms of digitalization. The activities supported by this project will enhance the accessibility of government services through online platforms, fostering a stronger citizen-government relationship and improving service delivery efficiency.
“This project is set to substantially improve tax administration, making it more efficient and providing better access to e-services. By enhancing the use of public funds, we expect to see a positive impact on the government’s fiscal health and the well-being of Djiboutians, leading to lasting socioeconomic benefits,” said Fatou Fall, Joint Resident Representative of the World Bank Group for Djibouti. “The improvements in managing public expenditures and tax collections will also create financial flexibility, allowing the government to sustain and expand the country’s investments.’’
Due to its strategic position and political stability, Djibouti’s port contributes significantly to the national economy. However, in recent years, the country has been shaken by overlapping crises, including COVID-19, climate change, and regional conflicts like the one in Ethiopia. These crises have slowed the country’s growth and negatively impacted the population, particularly those living in rural areas with less access to public services and social welfare programs.
The project is in line with the government’s medium-term strategy, public financial management (PFM) reform strategy 2024-2030, Vision 2035, as well as the World Bank Group (WBG) Country Partnership Framework (CPF) and the World Bank Group Gender Strategy.
The International Development Association (IDA) is the World Bank’s fund for the poorest. Established in 1960, it provides grants and low- to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to 1.6 billion people. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged $21 billion over the last three years, with about 61% going to Africa.
Distributed by African Media Agency (AMA) on behalf of the World Bank Group.
Contacts
In Djibouti
Korane Faycal
kfaycal@worldbankgroup.org
In Cairo
Mouslim Sidi Mohamed
msidimohamed@worldbank.org
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