Djibouti – Technical Facility to Improve Financial Well-Being of Refugees and Host Communities — Djibouti

Overview

The proosed operation is a TSF Pillar III grant of UA 1 million to Djibouti to finance the technical facility to enhance financial well-being for refugees and hosts. The government of Djibouti seeks to transform the economy of the country ; however, many areas need support particularly financial inclusion concerning the unbanked segment. Several challenges have limited the MSMEs development and consequently job creation. Refugees and host communities find it difficult to start up or develop professional activities that could increase their economic empowerment due to (i) low financial education and literacy; (ii) limited access to formal financial systems; (iii) lack of access to financial services ; (iv) the high-risk perception associated with refugees by the financial institutions ; (v) limited access to credit and (vi) limited access to mentoring and coaching services. The project will reinforce positive impacts of previous interventions and the dynamics of transformative actions in Djibouti. The project will strengthen Djibouti's financial services sector, open avenues for expanded lending, and facilitate the provision of complementary financial and non-financial services. The project is structured around four components : (i) Broaden the offer of affordable financial services ; (ii) Strengthen Financial Literacy and Consumer Protection Frameworks; (iii) Support Access to Finance ; and (iv) Project management support & Monitoring & Evaluation.