What is the potential for development in the energy sector in Djibouti?

The potential for development in Djibouti's energy sector remains high. The page below gives an overview of the energy sector in Djibouti.

Where does Djibouti's energy come from?

Most of Djibouti's energy supply, around 80%, is sourced from neighboring Ethiopia. At the end of 2023, Djibouti was among the select few countries throughout the world that had yet to install any PV capacity, according to the International Renewable Energy Agency (IRENA).

What is 'Doing Business' in Djibouti?

Djibouti is a subject of study in the 'Doing Business' project, which provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level.

What is the economy of Djibouti like?

Djibouti's economy is mostly barren, with little development in the agricultural and industrial sectors. The country has a harsh climate, a largely unskilled labour force, and limited natural resources. Its most important economic asset is its strategic location, connecting the Red Sea and the Gulf of Aden.

What challenges does Djibouti face?

The African Development Bank Group published the 2016-20 Country Strategy Paper on Djibouti, revealing that the nation faces challenges such as insufficient distribution networks and high electricity prices. Most of Djibouti's energy supply, around 80%, is sourced from neighboring Ethiopia.

Will AMEA Power Invest in Djibouti's first IPP project?

The solar plant is the country's first IPP project and will be developed under a BOOT model. “The Sovereign Fund of Djibouti (FSD) will be joining the project before financial close as a minority shareholder,” AMEA Power said, without providing additional details.