The IFC has announced agreements to strengthen access to finance for SMEs in Djibouti by modernizing a movable collateral registry and improving logistics for regional food trade through a collaboration with Tiryaki Agro. These projects aim to boost economic growth and food security while aligning with World Bank Group goals.
On January 22, 2025, the International Finance Corporation (IFC) announced two significant agreements aimed at fostering sustainable private sector growth in Djibouti. These initiatives focus on enhancing access to finance for small and medium-sized enterprises (SMEs) and strengthening regional trade and food security through improved logistics at Djibouti’s main port.
The IFC is collaborating with the Central Bank of Djibouti to modernize a movable collateral registry. This upgrade aims to improve access to finance for SMEs, especially those run by women and young entrepreneurs, who often lack formal documentation and collateral required for traditional loans. By refining the regulatory framework for movable property, the collateral registry will facilitate the use of movable assets in securing loans.
Ahmed Osman, Governor of the Central Bank of Djibouti, stated, “The movable collateral registry is particularly useful as a financial instrument for small and medium enterprises in Djibouti because they often lack sufficient collateral to access traditional forms of financing.”
In a separate agreement, the IFC will partner with Tiryaki Agro Gida Sanayi Ve Ticaret, Türkiye’s largest agribusiness exporter, to develop a port storage facility in Djibouti. This project will enhance operational efficiencies in managing key food commodities such as wheat, ensuring reduced vessel transit times and improved food security through optimized supply chains.
Süleyman Tiryakioğlu, CEO of Tiryaki Agro, noted, “We are proud to collaborate with the IFC on this transformative project, which enhances both our operations and Djibouti’s economic potential.”
Sérgio Pimenta, IFC Vice President for Africa, emphasized, “At the heart of the Horn of Africa, Djibouti plays a pivotal role in driving sustainable, resilient, inclusive growth in the region.”
Both projects align with the World Bank Group’s Country Partnership Framework for Djibouti (FY2022-26). They aim to reduce poverty through inclusive growth and job creation, in addition to IFC’s Private Sector Diagnostic, which outlines strategies for investment and economic transformation in Djibouti.
The IFC, a key institution in emerging markets, committed a record $56 billion to private sector initiatives in FY2024, reflecting its mission to alleviate poverty globally. Tiryaki Agro, with over 60 years of experience, leads in agricultural supply chain management, showcasing a robust commitment to food security and sustainable practices.
The IFC’s initiatives in Djibouti focus on improving access to finance for SMEs and enhancing regional trade through logistics advancements. By modernizing the collateral registry and collaborating with Tiryaki Agro, the IFC aims to drive economic transformation and food security in the Horn of Africa, aligning with broader World Bank goals to foster inclusive growth.
Original Source: www.ifc.org
