Djibouti secures $5 million loan to support SME

The Djibouti government has secured a five-million dollar loan to support its Small and Medium Enterprises (SME) and create 2,400 jobs for graduates.
The News Agency of Nigeria (NAN) quotes a statement from the Djibouti government as saying that it secured the amountfrom the Saudi Fund for Development.
The statement said the representatives of the government of Djibouti, and the Saudi Fund for Development signed the five-million dollar loan agreement on Thursday, to support Djibouti’s economic development.
It said the Djibouti Minister of Economy and Industrial Finance, Ilyas Moussa, signed on behalf of his country, while Yousef Bin Ibrahim al-Bassam, signed for the Saudi Fund for Development.
“The agreement is intended to diversify the national economy by funding Small and Medium Enterprises, expected to create 2,400 jobs for Djibouti’s graduates.“
It also said that a significant proportion of the funds would be allocated to support women in the areas of agriculture, fishing and transport.
“It will finance a number of projects in areas such as agriculture, fishing, transport and trade.“
The statement said the minister noted that reducing unemployment, particularly among the youth and women, was a priority for the government and for President Ismail Omar.
The Saudi Fund for Development is a Saudi government agency that channels bilateral aid to developing countries, predominantly through grants and soft loans.
The fund, established by a royal decree in 1974, began operations in 1975, with loans supporting infrastructure development, such as roads and dam construction.
It also supports construction and rehabilitation of hospitals and health clinics, as well as expansion of water and sanitation services.
NAN reports that the Saudi fund has also invested in supporting education, housing and urban development, as well as the energy sector.Since 1999, the fund has offered export credit and insurance facilities for non-crude oil national exports in Africa, to encourage domestic economic diversification that contributes to development within receiving countries.