Djibouti: Download the country investment note
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Djibouti 2026
INVESTMENT PROFILE
117.9 million
(in USD) Investment sought
SUSTAINABILITY BENEFITS
78,190
Total beneficiaries
3,554
(in USD) Average capita income
The Hand in Hand Initiative in Djibouti aims at boosting the country's food and agriculture sector to enhance food security and resilience. Key investments opportunities involve promoting high-value crops, investing in sustainable aquaculture, and strengthening climate-smart approaches to reduce the country reliance on food imports. The Initiative supports efforts to attract investments in line with the country strategic documents like the National Programme for Agricultural Investments, Food Security and Nutrition, the National Plan for the Primary Sector (Plan Directeur du secteur primaire 2026-2035) and its Plan of action. Djibouti is seeking a total of USD106.2 million in investments for development of dates and market garden production, marine aquaculture, slaughtering/meat and derived products and fodder production.
Geospatial Typologies
Agro-informatics connects information technology with the management, analysis and application of agricultural data to indentify territories with untapped agrifood potential and design more accurate and targeted agrifood interventions. The use of new technologies and techniques in agriculture, such as satellite imagery, remote sensing, and geographic information systems, enable the transformation of data into actionable information.
POVERTY
POTENTIAL
EFFICIENCY
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Investment cases in Djibouti
Investment Cases and Interventions
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Date Palm Trees
INVESTMENT
USD 60.6 M
INTERNAL RATE OF RETURN (%)
31.70%
NET PRESENT VALUE
USD 269.3 M
DIRECT BENEFICIARIES
1,800
INDIRECT BENEFICIARIES
3,600
INCOME INCREASE PER CAPITA
2,493 USD/person
EMISSION REDUTION (EXACT)
-10,961 TCO2-E
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Market Gardening
INVESTMENT
USD 1.9 M
INTERNAL RATE OF RETURN (%)
22%
NET PRESENT VALUE
USD 315,000
DIRECT BENEFICIARIES
60
INDIRECT BENEFICIARIES
180
INCOME INCREASE PER CAPITA
252 USD/person
EMISSION REDUTION (EXACT)
726 TCO2-E
The Initiative will support market garden production under shaded tunnels and acclimatised greenhouses. It involves growing tomatoes, peppers, aubergines, courgettes, cucumbers and melons under shaded tunnels over an area of 5 hectares in the country's 5 regions, at a total cost of USD 928,500 to which the Djibouti government will contribute USD 92,850. The investment per hectare is USD 185,610, with an internal rate of return (IRR) of 35% and a net present value (NPV) of USD 12,632.
Acclimatised greenhouse cultivation involves the same crops as shaded tunnel cultivation, over an area of 10 ha in the country's 5 regions, at a total cost of USD 17,480,000. The cost per hectare is USD 1,748,000 to which the Djibouti government is contributing USD 174,800. The IRR is 22% and the NPV USD 315,000.
Crops grown under shaded tunnels and acclimatised greenhouses will enable excessive heat and soil salinity to be managed, with the possibility of an above-ground cultivation system, using fertilising drip irrigation controlled by automation to obtain higher yields than crops grown in open fields.
Acclimatised greenhouse cultivation involves the same crops as shaded tunnel cultivation, over an area of 10 ha in the country's 5 regions, at a total cost of USD 17,480,000. The cost per hectare is USD 1,748,000 to which the Djibouti government is contributing USD 174,800. The IRR is 22% and the NPV USD 315,000.
Crops grown under shaded tunnels and acclimatised greenhouses will enable excessive heat and soil salinity to be managed, with the possibility of an above-ground cultivation system, using fertilising drip irrigation controlled by automation to obtain higher yields than crops grown in open fields.
Aquaculture
INVESTMENT
USD 0.6M
INTERNAL RATE OF RETURN (%)
28%
NET PRESENT VALUE
USD 797,822
DIRECT BENEFICIARIES
60
INDIRECT BENEFICIARIES
180
INCOME INCREASE PER CAPITA
332 USD/person
EMISSION REDUTION (EXACT)
10,715 TCO2-E
The investment case for marine aquaculture sector focuses on the development of a complete, modern system that guarantees control of the entire production cycle. The proposed model is based on intensive Captain fish/Cobia farming, with an annual production of 200 tonnes. The floating cages at sea, specially designed to withstand local conditions, form the heart of the system. They are supported by settling basins, pumping stations and salt and freshwater circuits for constant monitoring of water quality.
Support will also include a storage warehouse and a cold room to ensure the conservation of finished products. The technical core of the project is based on a short rearing cycle of 8 to 10 months, during which the fish (Captain/Cobia) are carefully fed, monitored and cared for. Each cage is monitored daily, based on a rigorous feeding plan. The grow-out environment is controlled to maintain constant parameters (temperature, salinity, oxygenation), promoting rapid, uniform and healthy growth in the fish.
The strain of fish to be reared will come either from a pilot aquaculture farm financed by the African Development Bank (ADB) project, thereby guaranteeing traceability and controlled genetic quality, or from wild juveniles collected in the wild for captive grow-out. The fry will be fed with imported industrial feed, specially formulated to ensure rapid and balanced growth, or alternatively with locally caught sardinella, which are rich in protein and available in abundance in Djibouti waters.
The model is also based on sustainable, integrated aquaculture that respects marine ecosystems and helps to reduce carbon emissions through innovative practices (marine polyculture, low energy consumption, zero pollutant discharges).
The total investment cost (INV) is estimated at USD 624,290 with IRR: 28%, VAN of USD 797,822, and return on capital employed (ROCE): 4 years.
Support will also include a storage warehouse and a cold room to ensure the conservation of finished products. The technical core of the project is based on a short rearing cycle of 8 to 10 months, during which the fish (Captain/Cobia) are carefully fed, monitored and cared for. Each cage is monitored daily, based on a rigorous feeding plan. The grow-out environment is controlled to maintain constant parameters (temperature, salinity, oxygenation), promoting rapid, uniform and healthy growth in the fish.
The strain of fish to be reared will come either from a pilot aquaculture farm financed by the African Development Bank (ADB) project, thereby guaranteeing traceability and controlled genetic quality, or from wild juveniles collected in the wild for captive grow-out. The fry will be fed with imported industrial feed, specially formulated to ensure rapid and balanced growth, or alternatively with locally caught sardinella, which are rich in protein and available in abundance in Djibouti waters.
The model is also based on sustainable, integrated aquaculture that respects marine ecosystems and helps to reduce carbon emissions through innovative practices (marine polyculture, low energy consumption, zero pollutant discharges).
The total investment cost (INV) is estimated at USD 624,290 with IRR: 28%, VAN of USD 797,822, and return on capital employed (ROCE): 4 years.
Meat and Derivatives
INVESTMENT
USD 30.7M
INTERNAL RATE OF RETURN (%)
31%
NET PRESENT VALUE
USD 12,456 M
DIRECT BENEFICIARIES
180
INDIRECT BENEFICIARIES
540
INCOME INCREASE PER CAPITA
1,730 USD/person
EMISSION REDUTION (EXACT)
21,804 TCO2-E
The investment case for meat focuses on building a modern slaughterhouse in Djibouti as a strategic opportunity to transform the livestock value chain on a regional scale, providing direct and rapid access to high-demand markets, particularly in the MENA (Middle East and North Africa) region, where annual demand for meat exceeds 120,000 tonnes.
Buoyed by a favourable regional dynamic, the project will benefit from privileged access to an abundant herd estimated at 373 million ruminants in the IGAD (Intergovernmental Authority on Development) member countries, guaranteeing a constant and competitive supply.
Djibouti already has two efficient quarantine centres, through which more than 800,000 head of live cattle pass every year. Djibouti's ambition is now to take a new step forward by making the most of these animal resources, estimated at 150 million US dollars, through the implementation of this modern slaughterhouse project.
This project will incorporate strict international standards in terms of quality, traceability and hygiene. It will not only ensure the health safety of local consumers but also open access to the most demanding international markets.
The total cost of the project is expected to be around USD 30 725 000. The project's IRR is estimated at 18%, with an NPV of USD 12.456.000 million.
Buoyed by a favourable regional dynamic, the project will benefit from privileged access to an abundant herd estimated at 373 million ruminants in the IGAD (Intergovernmental Authority on Development) member countries, guaranteeing a constant and competitive supply.
Djibouti already has two efficient quarantine centres, through which more than 800,000 head of live cattle pass every year. Djibouti's ambition is now to take a new step forward by making the most of these animal resources, estimated at 150 million US dollars, through the implementation of this modern slaughterhouse project.
This project will incorporate strict international standards in terms of quality, traceability and hygiene. It will not only ensure the health safety of local consumers but also open access to the most demanding international markets.
The total cost of the project is expected to be around USD 30 725 000. The project's IRR is estimated at 18%, with an NPV of USD 12.456.000 million.
Cattle Feed
INVESTMENT
USD 17M
INTERNAL RATE OF RETURN (%)
18.10%
NET PRESENT VALUE
USD 4,880,000
DIRECT BENEFICIARIES
600
INDIRECT BENEFICIARIES
1,800
INCOME INCREASE PER CAPITA
331 USD/person
EMISSION REDUTION (EXACT)
-28,000 TCO2-E
The project aims to develop fodder production over an area of 1,000 hectares to address the structural deficit in the national market, estimated at more than 570,000 tonnes per year. Current domestic production remains very limited (less than 15,000 tonnes annually), resulting in a heavy dependence on imports.
With a total estimated investment cost of USD 16.95 million, the project will enable the establishment of efficient irrigation systems, the production of adapted seeds, and the development of harvesting, storage, and marketing infrastructure. The project is expected to produce approximately 60,000 tonnes of fodder annually, thereby helping to reduce the national deficit and supporting the development of the livestock sector.
The project offers attractive profitability, with an Internal Rate of Return (IRR) of 18.1% and a capital payback period of six years. It is expected to generate around 100 direct jobs and 300 indirect jobs, benefiting a total of 2,400 people. In addition, the project will contribute to strengthening the resilience of agricultural systems to climate-related shocks and improving the sustainable management of natural resources.
With a total estimated investment cost of USD 16.95 million, the project will enable the establishment of efficient irrigation systems, the production of adapted seeds, and the development of harvesting, storage, and marketing infrastructure. The project is expected to produce approximately 60,000 tonnes of fodder annually, thereby helping to reduce the national deficit and supporting the development of the livestock sector.
The project offers attractive profitability, with an Internal Rate of Return (IRR) of 18.1% and a capital payback period of six years. It is expected to generate around 100 direct jobs and 300 indirect jobs, benefiting a total of 2,400 people. In addition, the project will contribute to strengthening the resilience of agricultural systems to climate-related shocks and improving the sustainable management of natural resources.
Resources
FAO's Hand-in-Hand Initiative
21/12/2023
The Hand-in-Hand (HIH) Initiative supports the implementation of nationally led, ambitious programmes to accelerate agrifood systems transformations...
In the Media
Contacts
For more information, please contact the Hand-in-Hand team