Banking

On the back of a rise in both capital investment and transport activity, Djibouti’s banking sector has seen considerable expansion in recent years. The most visible change has been the growing number of players in the market, which has led to an increase in competitiveness, and the expansion of products and services targeting local clients. The increasingly robust regulatory role being adopted by the Central Bank of Djibouti has led to the promulgation of various new rules – ranging from risk assessment frameworks and sharia compliance to regulations for new payment systems. This should help pave the way for increased retail and corporate activity. Although some vulnerabilities persist, the range of measures currently on the sector’s reform agenda is set to further modernise the financial industry. Better payment systems and improved credit guarantees will not only help the banking sector, but will have a broader positive impact on Djibouti’s economy.