The UN Economic Commission for Africa (ECA), through its Office for Eastern Africa, in partnership with the Ministry of Economy and Finance in charge of Industry of the Republic of Djibouti, today presented and launched a study examining the impact of the African Continental Free Trade Area (AfCFTA) on Djibouti’s industrialization and economic diversification.

The study provides a comprehensive assessment of how Djibouti can leverage the opportunities offered by the AfCFTA to accelerate structural transformation, expand industrial production and strengthen its participation in regional and continental value chains. The findings come at a time when Djibouti is seeking to diversify an economy that has traditionally been driven by transport, logistics and port services.

Andrew Mold, Director of ECA’s Office for Eastern Africa, highlighted the country’s remarkable economic progress over the past decade. Djibouti’s real GDP has more than tripled, increasing from US$1.34 billion in 2010 to US$4.15 billion in 2025, while GDP per capita rose from US$1,605 to US$3,501 during the same period.

The European Investment Bank Group’s international development arm, EIB Global, and Ethiopian lender Dashen Bank are joining forces to make €40 million in financing available to small and medium-sized enterprises (SMEs) in Ethiopia, with a focus on agriculture, the environment and women’s empowerment.

EIB Global is providing a €20 million loan to Dashen Bank, which will match the sum and channel the total to Ethiopian SMEs. The financing will be offered to SMEs with better terms – including longer maturities – than in the domestic commercial market. This feature tackles a persistent barrier to private-sector growth in Ethiopia: limited access to finance.

At least 70% of the financing will be directed towards agriculture and related activities. Priority beneficiaries will include SMEs exporting to Europe and elsewhere and operating in sectors such as coffee, pulses, horticultural products and cereals.