The African Export-Import Bank (Afreximbank) has announced a significant financial commitment to strategic infrastructure projects in Djibouti. The announcement was made during the groundbreaking ceremony for the Damerjog pipeline and storage facility, attended by regional leaders, including Djibouti's President Ismail Omar Guelleh and Ethiopian Prime Minister Abiy Ahmed. This move aims to enhance East African integration through improved infrastructure.
Afreximbank is committing $130 million to finance the second phase of the project, building on a $200 million investment in the initial Oil Jetty and pipeline in 2023. The bank is also arranging a $150 million facility to develop critical industrial roads across Djibouti, streamlining supply chain logistics and complementing maritime and storage capabilities.
The project is seen as a blueprint for African self-reliance, uniting African governments, indigenous entrepreneurial vision, and pan-African financial institutions to deliver world-class infrastructure. Afreximbank President and Chairman of the Board of Directors, Dr. George Elombi, emphasized the collaborative spirit driving the initiative.
Beyond physical infrastructure, Afreximbank is targeting the financial architecture underpinning East African commerce. The institution has approved trade confirmation lines for four Djiboutian banks and onboarded seven local financial institutions onto its pan-African payment services program. These moves aim to improve local access to trade finance, boost institutional liquidity, and smooth cross-border regional payments.
The Damerjog pipeline and storage facility expansion is expected to significantly enhance Djibouti's maritime and storage capabilities. The project is part of Afreximbank's broader strategy to support East African integration and economic growth through strategic infrastructure investments.
The groundbreaking ceremony was attended by prominent African industrialist Aliko Dangote, highlighting the project's significance and potential impact on regional economic development. The initiative is also seen as a demonstration of Afreximbank's commitment to supporting African governments and private sector initiatives.
Afreximbank's efforts to deepen East African integration through infrastructure investments and financial support are seen as crucial to the region's economic growth and development. The bank's commitment to financing strategic infrastructure projects is expected to have a lasting impact on the region's economic prospects.
Key points
- Afreximbank commits $130 million to expand Damerjog jetty and industrial road networks in Djibouti
- The project aims to enhance East African integration through improved infrastructure
- Afreximbank targets financial architecture underpinning East African commerce with trade finance and payment services initiatives
