By: Staff Writter
The Republic of Djibouti announces the creation of the Djibouti Sovereign Fund (Fonds Souverain de Djibouti – FSD) following the enactment of a law dated 29 March 2020 and the promulgation of the implementing decrees on 24th June 2020.
The creation of this fund is a key measure of the “Vision 2035” policy which guides the government’s actions and the economic strategy of the country in the long term: to position itself as a front-line international commercial, logistics and digital hub. It constitutes a major milestone as it shall serve as an instrument of action that mobilizes resources, with real investment capacities, and as an efficient tool for accelerated economic transformation.
Established in the form of a public limited company under private law whose sole shareholder is and will remain the State of Djibouti, the Fund belongs to all Djiboutians. Its purpose and missions are fully aligned with the country’s development goals. It is aimed at “gathering” national wealth in order to increase Djibouti’s capacity to invest in an optimized and efficient way. And to modernize and maximize the country’s economic potential and attractiveness. The Fund will serve as a tool for today’s growth and employment, while at the same time fostering the creation of large reserves for future generations. It is an inter-generational instrument that brings together the requirements of the short term with those of the long term.
The Fund will also have the role of enhancing Djibouti’s “capacity to act”. It will enable enhanced management of projects while giving priority to the country’s national and strategic interests, to increase its bargaining power with domestic or international partners and to be the strong and committed partner sought by foreign investors.
The Fund’s investments primarily target the Republic of Djibouti and countries with economic connections to it, particularly in the region of the Horn of Africa. The goal is to invest and co-invest in key sectors of the economy such as telecoms, new technologies, energy, infrastructure, logistics, agriculture and fishing. The Fund will focus on projects that support sustainable growth and the implementation of the energy transition.