The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a US$35 million sovereign financing facility with the Republic of Djibouti to strengthen the country’s bunkering services and reinforce its position as a strategic maritime and trade hub in the Horn of Africa.
The agreement was signed at ITFC’s headquarters in Jeddah by the Corporation’s Chief Executive Officer, Eng. Adeeb Yousuf Al-Aama, and Djibouti’s Minister of Economy and Finance in charge of Industry, H.E. Ilyas Moussa Dawaleh. The facility forms part of a broader US$600 million, three-year Framework Agreement signed between the two parties in May 2023.
According to ITFC, the financing will support the procurement of refined petroleum products through Red Sea Bunkering (RSB), the executing agency for the project. The initiative is expected to enhance Djibouti Port’s competitiveness as a “one-stop port” offering comprehensive vessel-related services, while contributing to revenue diversification and broader economic growth.
Eng. Al-Aama noted that the facility underscores ITFC’s commitment to Djibouti’s strategic priorities, particularly in strengthening energy security, trade facilitation, and regional integration. He added that deepening the partnership reflects confidence in Djibouti’s ambitions to expand its logistics and maritime services capacity.
Minister Dawaleh described the agreement as a significant milestone for the country’s oil and gas and maritime sectors, emphasizing that the partnership supports Djibouti’s goal of positioning itself as a regional hub for integrated logistics and port services.
Since ITFC commenced operations in 2008, the Corporation has approved approximately US$1.8 billion in financing for Djibouti, primarily supporting energy sector development and trade-related initiatives.
The latest facility is expected to reinforce Djibouti’s strategic role in regional supply chains, particularly along the Red Sea corridor, while helping expand trade and logistics capabilities across East Africa and beyond.
