Djibouti is experiencing sustained economic growth, driven mainly by its port and logistics activities. But behind this performance, the country remains heavily dependent on trade with Ethiopia and exposed to regional tensions. This dynamic now raises questions about employment, economic diversification and development financing.
According to the AfDB, Djibouti’s economy continues to post strong growth. GDP grew by 6.7% in 2025, after 6.8% in 2024. The World Bank and the IMF give a slightly lower estimate of 6.5%. This growth is mainly driven by ports, logistics, transport, telecommunications, construction and trade.
The main message of this report is clear. To accelerate our development, we need to mobilize more resources and improve how they are used. This includes strengthening the mobilization of domestic revenues, improving the efficiency of public spending, developing public-private partnerships and using innovative financing, as well as strengthening economic and financial governance and transparency.
Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry
Behind these figures lies an economic model heavily dependent on Djibouti’s strategic position. Around 80% of the goods handled at Djibouti’s ports are linked to transit to or from Ethiopia, according to the World Bank. The Addis Ababa–Djibouti corridor thus accounts for more than 95% of Ethiopia’s foreign trade by volume, making Djibouti’s ports a vital commercial lifeline for its neighboring country. This dependence is both a strength and a vulnerability. Tensions in the Red Sea have also temporarily boosted port activity: in 2024, it increased by 7.4%, with a spectacular 98% rise in transshipment. But this growth has yet to translate sufficiently into jobs.
These priorities are fully aligned with the reforms undertaken by the Government of Djibouti under our national development plan, Djibouti 2025–2030, commonly known as ADEG. The 2026 AfDB report is therefore a valuable tool for analysis and decision-making. I am convinced that today’s discussions will help enrich our collective thinking and strengthen our partnership with the African Development Bank.
Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry
Behind the macroeconomic performance, the social challenge remains significant. Unemployment stands at 26%, while nearly 46% of young people aged 16 to 24 are neither employed, in education nor in training. For experts, the challenge for Djibouti will therefore be to turn its port-driven growth into jobs, public revenue and improved living conditions. Economic diversification and better resource mobilization will be essential to make this model more resilient.
