ITFC signs $35mn facility with Djibouti to boost bunkering services
The financing supports Djibouti’s bunkering sector under a wider $600mn framework, strengthening its role as a regional maritime hub.
The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has signed a $35 million sovereign financing facility with the Republic of Djibouti to support the development of the country’s bunkering services sector and strengthen its position as a regional maritime and trade hub.
The facility was signed at ITFC’s headquarters in Jeddah by Eng. Adeeb Yousuf Al-Aama, Chief Executive Officer of ITFC, and H.E. Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry of the Republic of Djibouti.
The financing forms part of a broader $600 million, three-year Framework Agreement signed in May 2023 between ITFC and the Republic of Djibouti. The agreement reflects the long-standing and expanding partnership between the two parties, particularly in the areas of energy, trade, and infrastructure development.
According to ITFC, the new facility is expected to contribute to Djibouti’s economic growth and revenue diversification by strengthening the competitiveness and attractiveness of the Port of Djibouti as a “one-stop port” offering comprehensive vessel-related services. Red Sea Bunkering (RSB) will act as the Executing Agency for the facility.
The financing will support the procurement of refined petroleum products, aimed at enhancing RSB’s bunkering operations and reinforcing Djibouti’s role as a logistics and trading hub in the Horn of Africa and the wider region. Bunkering services are a key component of Djibouti’s maritime value proposition, given its strategic location along major international shipping routes connecting Asia, Europe, and Africa.
Commenting on the signing, Eng. Adeeb Yousuf Al-Aama, CEO of ITFC, said, “This financing reflects ITFC’s continued commitment to supporting Djibouti’s strategic development priorities, particularly in strengthening energy security, port competitiveness, and trade facilitation. We are proud to deepen our partnership with the Republic of Djibouti and contribute to sustainable economic growth and regional integration.”
H.E. Ilyas Moussa Dawaleh highlighted the significance of the agreement for Djibouti’s maritime ambitions, stating: “Today’s signing marks an important milestone in the development of Djibouti’s bunkering services and reflects our strong and valued partnership with ITFC, particularly in the oil and gas sector. This collaboration supports our ambition to position Djibouti as a regional hub for integrated maritime and logistics services. We look forward to deepening this partnership, creating new opportunities, and leveraging collaborative programmes to advance key sectors and drive sustainable economic growth.”
The latest facility builds on a long history of cooperation between ITFC and Djibouti. Since the partnership began in 2008, ITFC has approved a total of $1.8 billion in financing for the country, primarily supporting the energy sector and trade development objectives.
ITFC said the financing aligns with its broader mandate to promote trade, enhance energy security, and support sustainable development across its member countries. For Djibouti, the facility is expected to further consolidate its position as a key maritime services hub in the Red Sea region, supporting shipping activity and related logistics services.
