Financial Services
From The Report: Djibouti 2018
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Djibouti’s economic growth, based to a large degree on capital investment in infrastructure development and logistics, has been underscoring the expansion of its banking system. Since liberalisation of the sector in 2006, a number of new financial institutions have set up shop in the country, hoping to take advantage of its growing role as a regional transport and financial hub. With a population of approximately 900,000 inhabitants as of mid-2018, the country’s domestic financial services market remains small. However, the low level of banking penetration can also be seen as an opportunity for growth, both in terms of new customer acquisition and product sophistication. This chapter contains interviews with Ahmed Osman Ali, Governor, Central Bank of Djibouti; and with Nadhir Zouaghi, President, Professional Association of Credit Institutions.

Articles from this Chapter

Overview

A modern approach: Regulatory reforms and digitalisation to boost penetration rates
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Djibouti’s economic growth, based to a large degree on capital investment in infrastructure development and logistics, has been underscoring the expansion of its banking system. Since liberalisation of the sector in 2006 a number of new financial institutions have set up shop in the country, hoping to take advantage of its growing role as a regional transport and financial hub. With a population of approximately 900,000 inhabitants as of mid-2018, Djibouti’s domestic financial services…

Analysis

Opportunities ahead: New developments and alliances could bolster insurance uptake
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Although it remains a relatively small market with only two players, insurance in Djibouti continues to align with economic development. Most of the sector’s business is driven by the automotive line; however, new economic activities are expanding the market’s offerings. International cooperation with Djibouti’s neighbours has improved, as stronger commercial links have made cross-border transport and regional automotive insurance critical for seamless trade activities across the Horn…

Interview

Greater engagement: Ahmed Osman Ali, Governor, Central Bank of Djibouti, on the country’s increasingly sophisticated banking sector
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What are the main achievements of Djibouti’s financial sector in recent years? OSMAN ALI: Djibouti’s financial sector is comprised of 12 banks with increasingly active portfolios across a number of sectors. The rise in financial services activity after reforms in the early 2000s has led to the implementation of a rigorous regulatory framework. The country has a monetary system that provides a healthy and stable financial environment that will enable operators to mature and demonstrate…

Interview

Room to grow: Nadhir Zouaghi, President, Professional Association of Credit Institutions, on balancing priorities to foster growth
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How can Djibouti’s banking sector further support incoming foreign investment? ZOUAGHI: In recent years Djibouti’s economy has experienced average annual growth of 7%. This expansion is advantageous for all the players in the Djiboutian economy. Both market dynamism and foreign direct investments have a positive impact on productivity, consumption, purchasing power and financing, in addition to generating multiple financial transfers, account openings and requests for banking service –…