Djibouti's Finance Minister Ilyas Moussa Dawaleh and Vice President of the European Investment Bank, Thomas Östros, signed the agreement in Luxembourg during a working visit to the EIB headquarters by the Minister

Djibouti, EIB Shake Hands on €79mln Loan Deal

Djibouti and the European Investment Bank (EIB) signed a 79 million euro long-term loan deal that supports water desalination and wastewater treatment in the East African nation.

The agreement was signed during a working visit to EIB headquarters in Luxembourg by Djibouti’s Finance Minister Ilyas Moussa Dawaleh.

The European Union’s lending institution says the investment will secure clean water access for more than 555,000 people, and enable solar power and renewable energy to produce clean drinking water as part of the Global Gateway Initiative.

Finance Minister Dawaleh said the EIB’s new support in water security “represents a significant milestone in enabling Djibouti to adapt to a changing climate.”

Djibouti is one of the most vulnerable countries in the world to the impact of climate change, including prolonged drought, extreme temperatures, flash floods, and long-term salinization of soils and underground water aquifers.

“The partnership between Djibouti and the European Union will help us to transform and secure water supply for thousands of people in our country and contribute to delivering our country’s sustainable development goals,” Dawaleh said.

The minister also extended his appreciation to EIB not only for financial support but also for technical expertise.

The new projects will implement advanced water desalination technologies and the enhancement of wastewater treatment infrastructure.

“By leveraging renewable energy sources, this project will significantly contribute to achieve sustainable and inclusive development in Djibouti,” EIB’s vice president Thomas Östros said. “The sanitation component will fill a chronic investment backlog in the sector and will improve public health and environmental conditions.”

The long-term loan is the first-ever EIB’s support for water investment in 44 years of operations in Djibouti, though it has previously backed energy, telecom, and business investments.