Djibouti InfraSAP First Phase Overview - How to strengthen infrastructure performance to meet the Vision 2035 goals

Jul 19, 2026

Djibouti InfraSAP First Phase outlines how infrastructure can drive development and how current constraints limit jobs and private-sector growth. It examines where infrastructure performance falls short across connectivity, finance, and governance, and then focuses on ICT, electricity, and transport sectors. Key messages highlight competitive logistics and efficient ports, while identifying gaps such as insufficient electricity voltage, weak integration with industrial zones, and reliance on freight allocation mechanisms. Proposed solutions include improving rail and road operations, strengthening regulators and SOE governance, and expanding PPPs and public investment frameworks, supported by targeted pilots and private participation.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages105

Reading Time4 h 25 min

AccessFree to download

How Does Infrastructure Contribute to Development?

Macro-economic objectives

Policy goals

Where Does Infrastructure Performance Fall Short and Why?

Connectivity

Finance

Governance

Sector Coverage: ICT, Electricity and Transport

Key Messages and Priority Solutions

Ports and Logistics

Rail

Roads

Governance, Regulators, and SOE Corporate Governance

Strengthening Public Investment Framework

Expanding PPPs and Pilot Programs

Djibouti InfraSAP First Phase Overview March 2, 2022 Pub lic Disclosure Authorized Pub lic Disc losure Authorized Pub lic Disclosure Authorized Djibouti InfraSAP First Phase: How to strengthen infrastructure performance to meet the Vision 2035 goals 1. How Does Infrastructure Contribute to Development? a. Macro-economic objectives: jobs, growth, exports • How and where are the key sectors of the economy dependent on infrastructure and prejudiced by infrastructure deficiencies? b. Policy goals: social, environmental • How and where are the country’s key policy goals dependent on infrastructure and prejudiced by infrastructure deficiencies? 2. Where Does Infrastructure Performance Fall Short and Why? a. Connectivity • How well does infrastructure perform in terms of access, quality, efficiency and sustainability? b. Finance • Is infrastructure appropriately funded? • Is public expenditure on infrastructure adequate and efficient? • What constrains domestic and international private finance? c. Governance • Are infrastructure projects adequately planned and procured? • Are infrastructure markets and regulations well designed? • Are infrastructure SOEs well governed and managed? 3. Covers the ICT, Electricity and Transport Sectors Vision 2035 • “Structural transformation of the economy to make it more diversified and competitive, with an important role of the private sector. • Triple the income per capita by 2035, through the expansion of national and foreign private investment…and an infrastructure of good quality and at competitive costs.” 2 Key Messages Infrastructure investment has made major contributions to Djibouti’s growth, but obstacles remain to generate jobs and private sector development Maintaining Djibouti’s pivotal role in the development of the Horn of Africa • Djibouti currently has the most efficient port in the region and has better infrastructure linkages. However, given the development of competing ports and gateways, the country will have to maintain its competitive edge as a logistics and digital connectivity hub. This will require addressing inefficiencies in customs and logistics as well as improving the performance of the expensive investments in transport linkages to Ethiopia. • Insufficient electricity voltage • Lack of integration with industrial zones • Reliance upon (ESLSE) for the allocation of freight cargo. • Solutions include leasing diesel locomotives, marketresponsive pricing, enhancing traffic by integrating with export and industrial zonesand operationalizing petroleum transportation, and involving private players in rail operations to enhance services. Rail • Port operations are currently efficient in Djibouti relative to regional peers. • Scope to improve corporate governance strengthen the regulatory framework Ports • Road corridors to Ethiopia have segments in poor condition due to lack of maintenance andoverloading of trucks. • Investments to expand and strengthen these corridors locking-in good maintenance and operations, and consider PPPs in service delivery options Road Improving governance in markets, sectors and SOEs will be important in strengthening sector performance Establishing regulators • Regulation of the telecoms and electricity sector needs to be developed – regulator has been formally created but needs key appointments and staffing Enhancing market competition •Considerable scope for introducing competition in telecoms, as the country has one of the last remaining monopolies. Governance Gaps Improving SOE corporate governance • Benchmarking SOEs against global good practice shows substantial areas for improvement in corporate governance, around transparency of financial reporting and autonomy Strengthening public investment framework •Scope for improving approaches to public investment in infrastructure, particularly in preparation and contract management. The private sec

FAQs

What development roles does infrastructure play under the Vision 2035 agenda?

Infrastructure supports macro-economic objectives like jobs, growth, and exports, and it underpins key social and environmental policy goals required to progress toward Vision 2035 outcomes.

Which areas explain why infrastructure performance falls short in Djibouti?

The document attributes gaps to shortcomings in connectivity performance (access, quality, efficiency, sustainability), infrastructure finance adequacy, and weaknesses in planning, procurement, markets/regulation, and SOE governance.

What solutions are proposed to strengthen infrastructure performance across ICT, electricity, and transport?

Recommendations include improving port-linked logistics and customs efficiency, addressing electricity voltage shortages, strengthening road corridors and maintenance, developing telecom and electricity regulation and staffing, enhancing market competition, improving SOE corporate governance, and expanding PPPs via targeted pilots and better PPP framework and preparation.

Jul 19, 2026

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