Under the chairmanship of the President of the Republic, Prime Minister, Mr. Ismail Omar Guelleh, the Council of Ministers held its 23rd session on Tuesday, the 26th of December, the largest part of which was devoted to continuing to ratify the final accounts and estimated budgets of public institutions for the year 2024.
During this session, the Council of Ministers discussed and approved two draft laws related to two agreements on the promotion and protection of investments between the Republic of Djibouti and the Kingdom of Morocco and the Republic of Rwanda, as well as three draft decisions related to the ongoing training of contract notaries, judicial bailiffs, and student lawyers at the National School of Judicial Studies.

Moreover, the largest part of the session was devoted to continuing to ratify the final financial accounts and estimated budgets of public institutions for the year 2024.
These are the most important topics of the intensive agenda in the session:

  State Secretariat in charge of Investment and Private Sector Development

1. A draft law related to the ratification of the agreement to encourage and protect investments concluded with the Republic of Rwanda.

The draft law aims to ratify the investment promotion and protection agreement concluded between the Republic of Djibouti and the Republic of Rwanda.

The primary purpose of the agreement is to establish a legal framework conducive to investments by Djiboutian and Rwandan citizens by creating favorable conditions for increased investments by economic operators of each state party in the territory of the other state.

This agreement reflects the commitment of the two countries to encourage investments and create a solid legal framework, in addition to ensuring the promotion and protection of investments, and thus stimulating economic cooperation between the two countries.

2. A draft law related to the ratification of the agreement to encourage and protect investments concluded with the Kingdom of Morocco.

The draft law aims to ratify the agreement signed on July 25, 2022 in Rabat, between the Republic of Djibouti and the Kingdom of Morocco, related to the encouragement and protection of mutual investments.

The main objective of this agreement is to encourage, stimulate and protect investments in a mutual manner, as well as to enhance the transfer of capital, technology and technical expertise with the aim of rationalizing and maximizing investments.

This bilateral agreement would stimulate private initiatives and contribute to social and economic development in accordance with the laws and procedures in force on both sides.

Ministry of Economy and Finance, in charge of industry

3. Draft laws related to approving the final financial accounts of the Guarantee Fund in Djibouti, for the fiscal years 2022, 2021, 2020, 2019, and 2018.

The financial accounts of the Djibouti Guarantee Fund for the year 2022, with a balance between revenues and expenditures, amounted to 69,247.96 Djiboutian francs.

The Fund's general income consists of guarantee commissions, which witnessed a relative decline in the year 2022, compared to the fiscal year 2021, in addition to fixed government support of more than 69.2 million Djiboutian francs.

Operating expenses consist of employee costs, which witnessed a slight increase in the year 2022, while other operating expenses increased to reach 17.2 million Djiboutian francs in 2022 compared to 10.8 million Djiboutian francs in 2021.

Liquidity in 2022 amounted to 810.7 million Djiboutian francs, compared to 832.6 million Djiboutian francs in 2021, while the investment budget amounted to 2.4 million Djiboutian francs, which covers the costs of acquiring office furniture and computer equipment, as well as air conditioning equipment.

It should be noted that during the fiscal year 2022, the Djibouti Guarantee Fund processed 201 files, which led to supplying the economy with bank credits worth 568 million Djiboutian francs.

  On the other hand, the Council of Ministers settled the Fund’s financial accounts for the years extending from 2018 to 2021.

4. A draft resolution related to approving the estimated budget of the Guarantee Fund in Djibouti for the year 2024

The estimated budget of the Djibouti Guarantee Fund for the fiscal year 2024, balanced in terms of revenues and expenditures, amounts to 81,295,276 Djiboutian francs.

The expected budget records a significant increase (15.2 + million Djiboutian francs), exceeding the ceiling of 66 million Djiboutian francs in 2023 to 81.2 million Djiboutian francs in 2024.

The investment budget is mainly related to the renewal of information technology equipment, as the Fund expects to pump 624 million Djiboutian francs through bank loans in 2024.

In 2023, the Djibouti Guarantee Fund is scheduled to begin activities focusing on affordable housing over a 5-year period for 2,700 families.

It should be noted that the files already being processed amount to 171 with a total value of 568.8 million Djiboutian francs.

Ministry of Information in charge of Posts and Communications

5. Draft laws related to approving the financial accounts of Djibouti Post for the years 2021, 2020 and 2019

The financial accounts of Djibouti Post regarding revenues for the year 2021 amounted to 496,888,923 Djiboutian francs, 666,236,847 Djiboutian francs regarding expenses, and the total products increased (+32.2 million Djiboutian francs) in the year 2021.

This increase in revenues is linked to increased other revenues, in particular support from Djibouti Telecom, support from the Universal Postal Union, as well as revenues from licences.

The Foundation's total expenses amounted to about 646 million Djiboutian francs in 2021, compared to 578 million Djiboutian francs in 2020.

Djibouti Post invested 9.2 million Djiboutian francs in 2021 in developing buildings and acquiring furniture, office equipment, IT equipment, as well as air conditioning.

It should be noted that the Council of Ministers also settled the financial accounts of the Post Office for the fiscal years 2019 and 2020.

6. A draft resolution related to approving the estimated budget for Djibouti Post for the year 2024.