Djibouti inaugurates Sovereign Fund to turbocharge country’s development

DJIBOUTI – Djibouti, one of the smallest country’s country in continental Africa by land mass and population size, has inaugrated the Djibouti Sovereign Fund (Fonds Souverain de Djibouti – FSD) aimed at turbocharging the country’s development.

The activities of the Djibouti Sovereign Fund were officially launched in September at presidential palace in the capital.

The launch follows the implementation decrees promulgated in June during a special inter-ministerial committee officiated by the Djiboutian President Ismaël Omar Guelleh.

During the inter-ministerial committee, the Djibouti Cabinet also had an opportunity to formalize the appointment of the Managing Director of the FSD, Mamadou Mbaye.

Mbaye who was previously Vice-President of the Sovereign Fund for Strategic Investments of Senegal brings with him an outstanding experience in both the private and public sectors.

According to a Africa Global Funds report, the Sovereign Fund will strive to modernize the country’s economy, boost the growth of a competitive private sector and, enhance the development of the public productive sector.

The creation of the FSD is a flagship project of Djibouti’s long-term development strategy dubbed “Vision 2035”, which aims to position the country as a leading commercial, logistics, port and digital hub.

Established in the form of a private limited company whose sole shareholder is and will remain the State of Djibouti, the Fund aims to “collect” national wealth to leverage Djibouti’s ability to invest quickly, Africa Global Funds reported.

Djibouti economy’s backbone is its strategic location on the Red Sea and has little development in the agricultural and industrial sectors.

As such, Djibouti’s economy is commanded by the services sector, providing services as both a transit port for the region and as an international transshipment and refueling centre.

The country has a largely unskilled labour force and the vibrant port activities have contributed to the country maintaining its unemployment rate at 10.3% for the four years now.

The sovereign fund will allow better control of projects while focusing on the national and strategic interests of the country.

It will also play the role of a strong and committed partner sought by external and domestic investors.

The Fund has a task of working towards achieving economic growth and for today’s employment while working on creating a diversified economy and building reserves for new generations.

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