Investment Opportunities
Investment Opportunities › Banking
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Legal framework

The Reference texts of the sector are:
  • Law n°91/AN/05 related to the Central Bank of Djibouti
  • Law n°92/AN/05 governing the opening, activities, and functioning of credit institutions

In order to establish and engage in an activity, the commercial banks must obtain prior required agreement, among which, possessing up to 30% shares of a credit institution or benefit of a stand by refinancing in currencies from an international bank while observing the national standards and norms established by the Central Bank.

The minimum capital amount of the financial and banking institutions, or minimum endowment in capital for the branches and agencies establishments which are headquartered abroad, is fixed at 300 hundred million francs.

Furthermore, all economic actor whether residing or not residing are entitled to open an account without delay. A great freedom of transfer everywhere in the world thanks to an adequate regulation constitutes one of the advantages of Djibouti.

Market potentialities

With around 10% of the GDP, the Djibouti’s banking sector plays a vital role in the national economy. Thanks to an exchange policy maintaining fixed parity with the dollar, Djibouti’s banking sector has opted for financial liberalism, which enables it to promote a stable, dynamic, and reassuring financial environment for regional investor.
Owing to a strict application of international regulatory provisions and prudential standards, Djibouti’s financial sector has become a reliable and sound banking system, backed by major banking groups, and benefitting from free capital flows.

The importance of the banking sector can also be attributed to the absence of exchange restrictions and to the stability of the Djiboutian Franc, the national currency. In fact, financial liberalism, reflected by the domestic commercial role played by Djiboutian banks, has attracted substantial foreign deposits in Djibouti.

Besides the Central Bank of Djibouti, the country’s financial sector includes today 10 deposit and credit institutions.
New banks have also been included in the list approved by the Central Bank. Djibouti disposes of a stable financial sector with a market that goes beyond borders.
However, the country still lack for a specialised banking services providers that respond to the increasing demand of the local population and businesses.

Authorities encourages private sector into the investment, but not limited, of the following:
  • Establishment of more facilities and customers oriented banks
  • Establishment of Investment Banks that provide funds to sectors that are placed priority by the government namely, the agricultural sector and industrial sector
  • Private and local partnership to develop the microcredit and microfinance sector
  • Mutual Fund Agencies
  • Portfolio Management Agencies