Young Entrepreneurs Reshaping Djibouti’s Business Horizon

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In Djibouti, a wave of young entrepreneurs, notably many women, is shattering barriers and spearheading innovative ventures, ranging from eco-friendly bag sales to telemedicine startups.

Traditionally, entrepreneurs in Djibouti encountered numerous hurdles, including a dearth of startup capital that stifled business initiation for many locals. However, the landscape is evolving. A transformative initiative backed by the World Bank, with a substantial investment of $15 million and executed by the Center for Leadership and Entrepreneurship (CLE), has facilitated the formalization of over 727 businesses in Djibouti. In line with global trends, many entrepreneurs initially operated within the informal sector, grappling with limited access to financial resources crucial for business expansion—a gap that the project aims to bridge.

The Djibouti Support for Women and Youth Entrepreneurship project has been instrumental in providing financial avenues for more than 2,350 entrepreneurs, empowering a diverse array of ventures to flourish. Additionally, the CLE has nurtured over 20 startups through seed funding amounting to approximately $65,000. These milestones mark a pivotal transformation in Djibouti’s entrepreneurial landscape, offering a promising trajectory for burgeoning enterprises.

Furthermore, the project has played a pivotal role in operationalizing the partial credit guarantee fund tailored for small and medium-sized enterprises (SMEs) in Djibouti. This initiative has galvanized over $2 million in investments from collaborating banks, facilitating access to crucial bank financing for over 150 Djiboutian SMEs. Such initiatives not only fuel business expansion but also invigorate economic growth and foster a more conducive environment for entrepreneurial endeavors in Djibouti’s burgeoning market.