African Development Bank targets Djibouti SMEs with $10.75 million fund

The agreement offers up to 100 percent risk coverage to confirming banks, simplifying the process for international institutions to validate letters of credit issued by iib East Africa. By mitigating the risks inherent in cross-border trade, the facility allows local companies to secure necessary imports for renewable energy, manufacturing, and telecommunications sectors. This influx of capital is specifically designed to support the expansion of businesses, with a targeted emphasis on enterprises owned by women who traditionally encounter higher barriers to credit.

Lamin Drammeh, manager of the bank’s trade finance division, noted that the initiative directly connects Djiboutian entrepreneurs to global markets. For iib East Africa, the partnership serves as a cornerstone for its private sector strategy, aiming to stimulate production and sustain thousands of jobs. Chairman Sohail Sultan emphasized that providing access to hard currency is essential for long-term economic resilience, helping domestic firms withstand external financial shocks while fostering sustainable growth across the region.