Djibouti is strengthening its urban backbone after the African Development Fund approved a $21 million grant to upgrade critical infrastructure and enhance climate resilience in the capital. The financing supports the first phase of the Djibouti Integrated Urban Infrastructure and Climate Change Adaptation Project, approved in December, as the country responds to rapid urban growth and rising climate risks.
Africa’s Power Women Shine on Forbes 2025 List.
The project will rehabilitate seven kilometres of roads and drainage systems in Djibouti City, introducing nature-based solutions designed to improve mobility, reduce flooding and enhance living conditions. With nearly three-quarters of the country’s population concentrated in the capital, pressure on infrastructure has intensified, particularly in low-lying areas built on coral plains and reclaimed land that are highly vulnerable to extreme weather.Recent floods and cyclones have exposed structural weaknesses, reinforcing the need for climate-smart urban planning. By modernising transport and drainage networks, the project aims to make the city safer and more resilient while supporting sustainable urban expansion.
Djibouti’s role extends well beyond its borders. As the main maritime gateway for Ethiopia, handling around 90 percent of its seaborne trade, the city’s infrastructure is a strategic asset for regional commerce. Improving urban systems therefore supports not only local communities but also trade efficiency, employment and competitiveness across the Horn of Africa.
The initiative aligns with Djibouti’s Vision 2035 and National Development Plan, while advancing the African Development Bank Group’s regional integration and long-term development strategies. By investing in climate-resilient infrastructure, Djibouti is positioning itself as a more sustainable, connected and resilient port city at the heart of East African trade.