Djibouti Secures $90 Million Facility from ITFC to Strengthen Energy Security

Djibouti’s efforts to ensure reliable access to energy received a significant boost as the International Islamic Trade Finance Corporation (ITFC) signed a $90 million syndicated facility to finance the country’s procurement of refined petroleum products.

The agreement was formalized between ITFC Chief Operating Officer Nazeem Noordali and Djibouti’s Minister of Economy and Finance Ilyas Moussa Dawaleh. Under the arrangement, the Société Internationale des Hydrocarbures de Djibouti (SIHD) will use the funds to secure essential fuel imports crucial for the nation’s energy needs.

The facility forms part of ITFC’s broader collaboration with Djibouti under a $600 million three-year framework agreement signed in 2023. That accord focuses on bolstering key sectors such as energy, agriculture, health, and private enterprise to promote inclusive and sustainable growth.

Commenting on the signing, Noordali emphasized the strategic importance of energy to Djibouti’s economic future. “Djibouti’s economic potential is closely tied to the strength of its energy sector, and substantial investment is essential to unlocking that potential,” he said. “ITFC reinforces its commitment to supporting Djibouti’s energy security and sustainable growth through this new facility.”

He added that the agreement underscores ITFC’s long-standing partnership with Djibouti and its dedication to helping SIHD meet the country’s fuel supply requirements. “We remain dedicated to advancing Djibouti’s economic development and will continue channeling funding where it creates the greatest impact,” Noordali said.

The new deal follows a similar $90 million Murabaha financing agreement signed in February 2024 between ITFC and SIHD. At that time, the Jeddah-based multilateral lender reported total approvals of $1.6 billion for Djibouti across 33 projects spanning the energy and health sectors.

Located along one of the world’s busiest maritime routes at the entrance to the Red Sea, Djibouti relies heavily on imported petroleum products to meet domestic energy demand. Ensuring a stable supply of fuel remains a top government priority as the country positions itself as a key logistics and maritime hub for East Africa.

Since 2008, ITFC — a member of the Islamic Development Bank Group — has extended $1.7 billion in financing and capacity-building support to Djibouti. The latest agreement is expected to strengthen the country’s fuel security, maintain steady electricity generation, and foster trade among member states of the Organization of Islamic Cooperation.