The World Bank and the European Union Delegation in Djibouti, on behalf of European Union, signed an Administration Agreement this month to support the development of Djibouti’s Micro, Small and Medium Enterprises (MSMEs).
The 3.9 million Euro contribution will support the World Bank’s MSME Business Development Project in Djibouti, which provides services to MSMEs, including access to digitalization, improved accounting practices, credit applications, business plans and legal and marketing strategies. It will also support the creation of a virtual “one-stop-shop” where MSME’s can go to one place to access permits and other services. The European funding will be channeled through the World Bank’s MENA Regional Umbrella Multi-donor Trust Fund Program.
“The project will foster the growth of MSMEs in Djibouti by supporting technology adoption and business development. This new injection of funds will also help to boost the capacity of MSME’s in Djibouti, which are an important driver of jobs and income”, says Marina Wes, Country Director for Djibouti, Egypt and Yemen.
“The project will support the diversification of the Djiboutian private sector by fostering entrepreneurship in new sectors outside of transportation and port activities, increasing turnover for firms, and thus will promote job creation” says Simona Schlede, Head of Cooperation, EU Delegation in Djibouti.
Beneficiaries of the project include (a) new or existing MSMEs needing business development services, (b) beneficiaries needing additional support from the World Bank’s Djibouti Support to Women and Youth Entrepreneurship Project, and (c) aspiring entrepreneurs. Intermediate beneficiaries include financial institutions, public institutions and programs supporting MSMEs.
The project is aligned with the World Bank Group’s 2022-2026 Country Partnership Framework for Djibouti, which aims to help Djibouti achieve its goal of reducing poverty through promoting inclusive private sector-led growth, job creation, and human capital; and strengthening the role and capacity of the state. The project, which will be implemented over four years, also complements European Union priorities in Djibouti.
Distributed by APO Group on behalf of The World Bank Group.