On October 27, 2026, Djibouti's President Ismaïl Omar Guelleh chaired the 12th session of the Council of Ministers. The meeting focused on supporting youth entrepreneurship and economic diversification. President Guelleh emphasized the need to facilitate access to financing for young entrepreneurs to create sustainable jobs. He highlighted the role of the Fund for Economic Development of Djibouti (FDED) in providing training, technical assistance, and monitoring.
The President announced an exceptional allocation of 1.8 billion Djiboutian francs to the FDED to support national entrepreneurship, combat youth unemployment, and diversify the economy. This initiative aims to promote sectors such as agriculture, livestock, fishing, tourism, renewable energy, logistics, digital services, and circular economy. The President stressed that the program's success will be measured by the viability of created enterprises, jobs generated, and their sustainable contribution to national prosperity.
The Council of Ministers also examined and approved several texts, including a draft Organic Law on Finance Laws. This law aims to modernize the legal framework governing the preparation, execution, and control of the state budget. The draft law seeks to strengthen budgetary discipline, improve public expenditure efficiency, and enhance transparency and accountability in managing state resources.
The proposed Organic Law on Finance Laws is part of Djibouti's Vision 2035 and the National Development Plan (PND) ADEEG 2025-2030. The law aims to better articulate national development priorities with budget programming while ensuring more efficient allocation of public resources. It replaces the 2000 law on finance laws and adapts the regulatory framework to institutional developments and new financial governance requirements.
The draft law introduces a program-based budget approach with clear objectives and performance indicators. It also provides for the preparation of a multi-year budget and economic programming document to enhance visibility on state resources and expenditures. The law aims to improve public action evaluation and strengthen parliamentary and Court of Accounts' oversight in budgetary management.
The Council of Ministers also discussed other key aspects of the draft law, including the deconcentration of expenditure authorization, strengthened responsibility of program managers, and the introduction of internal budgetary control, management control, and internal accounting control. These measures aim to improve risk management, account quality, and public expenditure efficiency.
The implementation of the Organic Law on Finance Laws will be complemented by regulatory texts, including the public accounting regulations, revised budget nomenclature, state chart of accounts, and state financial operations table. The law is expected to provide Djibouti with a modern legal framework adapted to contemporary public management requirements, promoting better resource mobilization and utilization, financial transparency, and performance-based budget management.
Key points
- The Djibouti government has allocated $1.8 billion to support youth entrepreneurship and economic diversification.
- A new Organic Law on Finance Laws aims to modernize Djibouti's budget management and improve public expenditure efficiency.
- The law introduces a program-based budget approach and strengthens parliamentary and Court of Accounts' oversight in budgetary management.
