On October 27, 2026, President Ismaïl Omar Guelleh of Djibouti presided over the 12th Council of Ministers meeting. The session began with an address by the President, where he emphasized the importance of supporting the country's youth. He highlighted the need to provide opportunities for young entrepreneurs to access financing and create sustainable jobs. The President also underscored the role of the Fonds de Développement Économique de Djibouti (FDED) in supporting national entrepreneurship and economic diversification.
During the meeting, the President announced an exceptional allocation of 1.8 billion Djiboutian francs to the FDED. This fund will be used to support entrepreneurship, combat youth unemployment, and diversify the economy. The President stressed that the success of this program will be measured by the viability of created enterprises, the number of jobs generated, and their sustainable contribution to national prosperity. Particular attention will be given to priority sectors such as agriculture, livestock, fishing, tourism, renewable energy, logistics, digital services, and the circular economy.
The Council of Ministers also examined and approved several key projects, 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 project seeks to strengthen budgetary discipline, improve public spending efficiency, and consolidate transparency and accountability in state resource management. This reform is part of Djibouti's Vision 2035 and the national development plan (PND) ADEEG 2025-2030.
The draft organic law on finance laws is designed to adapt the regulatory framework to institutional evolutions and new financial governance requirements. The project replaces the 2000 law on finance laws and introduces a program-based budget approach with clear objectives and performance indicators. This approach aims to link allocated credits to expected results and improve public action evaluation. The project also provides for the elaboration of a multi-year budgetary and economic programming document to strengthen visibility on state resources and spending.
The Council of Ministers also discussed the deconcentration of the expenditure ordonnateur function to ministers and the strengthening of program managers' responsibility. The project introduces the management of credits in engagement authorizations and payment credits, asymmetric fungibility of credits, and the fixing of ceilings for authorized state-paid employment. The text also clarifies the respective responsibilities of budget and economy and finance authorities, particularly regarding budget regulation, financial balance preservation, and external financing mobilization.
The draft organic law provides for a strengthening of parliament and court of accounts prerogatives in information, control, and evaluation of budgetary management. The project establishes a budgetary orientation debate in parliament, based on the multi-year budgetary and economic programming document, and provides for the periodic transmission of budget execution situations. It also introduces internal budgetary control, management control, and internal accounting control to improve risk management, account quality, and public spending efficiency evaluation.
The implementation of this organic law will be complemented by regulatory texts, including the public accounting regulation, revised budget nomenclature, state chart of accounts, and state financial operations table. The project aims to improve public resource mobilization and utilization, strengthen financial transparency, and promote performance-based budgetary management, accountability, and accountability. The government plans a gradual implementation of the reform, considering the scope of the envisaged transformations.
Key points
- President Ismaïl Omar Guelleh announces an exceptional allocation of 1.8 billion Djiboutian francs to support entrepreneurship and economic diversification.
