$35 million Grant to Expand Safe Water Access for Rural Communities in Djibouti

WASHINGTON, March 16, 2026 - As part of a broader regional effort to address one of the Horn of Africa's most pressing development challenges, the World Bank has approved a $35 million grant for the Government of Djibouti to expand access to safe and reliable water resources for rural communities in Djibouti.

The Djibouti Groundwater Resilience and Water Supply Project (DJIRESA) marks the country's entry into the Horn of Africa - Groundwater for Resilience Program, a World Bank-supported $455 million regional initiative that also includes Ethiopia, Kenya, and Somalia. The Intergovernmental Authority on Development (IGAD) serves as the regional coordinating body and will receive an additional $1.5 million to strengthen cross-border knowledge sharing and data management.

At the country level, the project is expected to enhance climate resilience for at least 167,000 people and provide access to reliable basic water services for 127,000 people in rural areas of Djibouti. It will finance the construction and rehabilitation of rural water systems, expanding and restoring access to safe water.

To ensure sustainability, the project will professionalize operations and maintenance, addressing a chronic challenge in rural Djibouti, where many water systems fall out of service due to inadequate upkeep. It will also strengthen the capacity of the Rural Hydraulic Directorate through targeted training and the establishment of new regional offices. To underpin sound decision-making, the project will establish a national Groundwater Information Management System, linked to the IGAD regional platform and will support the formulation of a Water Resources Master Plan.

"Access to water is essential to the well-being of our citizens and to the country's development," said Ilyas Moussa Dawaleh, Minister of Economy and Finance of Djibouti. "This investment will make a tangible difference in the lives of rural communities and is consistent with Djibouti's Vision 2035, which places human development and equitable access to services at the center of our national priorities."

Djibouti has renewable water resources of only 185 cubic meters per person per year - well below the 500 cubic meter threshold for absolute water scarcity. In some areas, groundwater is already being extracted faster than it can be replenished, a trend intensified by climate change through more frequent droughts, floods, and rising groundwater salinity. The consequences are felt most acutely in rural areas, where only 47 percent of residents have access to basic drinking water, compared to 83 percent in urban areas - a gap that reflects decades of unequal investment.

"Improving water access in rural Djibouti is both a humanitarian and an economic imperative. Drought can cost the country up to 4 percent of GDP, and it is pastoral and rural communities who bear the heaviest burden," said Fatou Fall, World Bank Group Joint Resident Representative for Djibouti. "This project directly addresses those vulnerabilities while building the institutions and data systems Djibouti needs to sustainably manage its water resources for generations to come."

About IDA

The International Development Association (IDA) is a part of the World Bank and focuses on assisting low-income countries. Established in 1960, IDA complements the World Bank's original lending arm, the International Bank of Reconstruction and Development (IBRD). It comprises 175 member countries. IDA provides grants and low to zero-interest loans that help countries invest in their futures, improve lives, and create safer, more prosperous communities worldwide. IDA is one of the largest sources of assistance for 78 low-income countries and the single largest source of donor funds for essential social services in these nations.