On October 27, 2026, Djibouti's President Ismail Omar Guelleh presided over the 12th Council of Ministers meeting. The meeting focused on several key 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's budget. The goal is to adapt to current public finance management requirements in Djibouti.
The draft Organic Law on Finance Laws seeks to strengthen budgetary discipline, improve public expenditure efficiency, and enhance transparency and accountability in state resource management. This reform aligns with Djibouti's Vision 2035 and the National Development Plan (PND) ADEEG 2025-2030. The new law will replace the 2000 law on finance laws, adapting the regulatory framework to institutional evolutions and new financial governance requirements.
President Guelleh also addressed the council on modalities to support the youth. He announced an exceptional allocation of 1.8 billion Djiboutian francs to the Djibouti Economic Development Fund (FDED). This fund will support national entrepreneurship, combat youth unemployment, and diversify the economy. The President emphasized facilitating access to financing for young entrepreneurs to create sustainable jobs.
The President highlighted the importance of the FDED in supporting beneficiaries through training, technical assistance, and activity monitoring. Priority sectors include agriculture, livestock, fishing, tourism, renewable energies, logistics, digital services, and the circular economy. The success of this program will be measured by the viability of created enterprises, generated employment, and their sustainable contribution to national prosperity.
The Council of Ministers examined and approved several texts, including the draft Organic Law on Finance Laws. This law introduces a program-based budget approach with defined objectives and performance indicators. It aims to link allocated credits to expected results and improve public action evaluation. The law also provides for a multi-year budget and economic programming document to enhance visibility on state resources and expenditures.
The draft law introduces deconcentration of the expenditure authorization function to ministers and strengthens program managers' responsibility. It also provides for credit management in commitment authorizations and payment credits, asymmetric credit fungibility, and employment authorization ceilings. The text clarifies responsibilities between budget and economy and finance authorities, particularly in budget regulation and external financing mobilization.
The Organic Law draft enhances Parliament and the Court of Accounts' prerogatives in budgetary information, control, and evaluation. It establishes a budget orientation debate in Parliament and provides for periodic transmission of budget execution situations. The law also introduces internal budgetary control, management control, and internal accounting control to improve risk management and public expenditure efficiency.
Key points
- President Ismail Omar Guelleh leads the 12th Council of Ministers meeting to discuss key projects and reforms.
- The draft Organic Law on Finance Laws aims to modernize Djibouti's budget management framework.
- The government allocates 1.8 billion Djiboutian francs to support youth entrepreneurship and job creation.
