Djibouti country economic memorandum: Djibouti beyond the ports and bases - a path to prosperity for all
As Djibouti embarks on its second phase of development, it is crucial to ensure that the benefits of growth are felt by all segments of society, particularly women and youth. To achieve this, three critical priorities have been identified in the Country Economic Memorandum (CEM): (i) enhance economic resilience and foster diversification by improving the macro-fiscal framework, promoting competitiveness, and fostering diversification; (ii) improve human capital and labor market outcomes for a more inclusive society by investing in education and health as well as enhancing the effectiveness and efficiency of the social protection system; (iii) strengthen the state-owned entreprise (SOE) sector by introducing competition in SOE dominated sectors, operationalizing the Djibouti Multi-sector Regulatory Authority (ARMD) in charge of regulating the energy and telecommunications sectors, and strengthening the institutional framework for financial oversight to mitigate fiscal risks associated with SOEs. Addressing these issues is crucial to foster a more conducive environment for businesses and stimulate economic growth. The report suggests that a progressive reduction in Djibouti’s electricity and telecommunications costs could lead to a substantial 39.1% increase in the country’s real GDP by 2030.
