Standard Transfer Specification (STS) Webinar Now Available On-Demand to Empower Utilities with Smart Metering Solutions

ESI Africa, in collaboration with the STS Association, is excited to announce that the recent webinar, “STS – The Evolution into Smart Metering,” is now available on-demand. This insightful session provides utilities, municipalities, and energy professionals with a comprehensive guide to leveraging the Standard Transfer Specification (STS) for efficient and interoperable prepayment metering.

The webinar explores the globally accepted STS ecosystem, a South African-developed technology powering over 70 million smart meters worldwide. Key discussions include the benefits of the Key Management Centre, implementation strategies, and the interoperability of STS-compliant systems, enabling municipalities to work seamlessly with multiple vendors while ensuring secure transactions.

Riccardo Pucci, Marketing Manager at the STS Association, emphasized the consumer and utility benefits of prepaid smart meters:
“STS enables energy conservation by empowering consumers to monitor usage in real-time, enhances revenue flexibility by reducing billing disputes, and boosts operational efficiency by eliminating manual meter readings.”

Franco Pucci, Technical Consultant, highlighted STS’s 25-year track record and its adaptability to modern technology, with access to 1,350 metering products for scalable solutions. The STS Association also offers extensive training resources, including user guides, manuals, and customizable in-person or online sessions, available through their website.

The on-demand webinar includes expert commentary on audience poll results, addressing key challenges in prepayment systems, making it a valuable resource for utilities seeking practical solutions.

Watch now at: https://apo-opa.co/3HTOVPT
 

Distributed by APO Group on behalf of Vuka Group.

For more information, contact:
ESI Africa at  info@esi-africa.com
www.STS.org.za for training and resources

About ESI Africa:
ESI Africa is the leading platform for African energy and sector coupling news, insights and webinars, connecting industry stakeholders with innovative solutions.

About STS Association:
The STS Association promotes the adoption of the Standard Transfer Specification, ensuring interoperable, secure, and scalable prepayment metering solutions globally.

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Employment and Labour Committee Welcomes Presentations on 2025-2030 Strategic and 2025/26 Annual Performance Plans of the Compensation Fund and Unemployment Insurance Fund (UIF)


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The Portfolio Committee on Employment and Labour has welcomed presentations on the 2025-2030 strategic plans, 2025/26 annual performance plans and budget estimates of the Compensation Fund and the Unemployment Insurance Fund (UIF).

The Compensation Fund and UIF are entities of the Department of Employment and Labour. The committee encouraged them to work in a coordinated manner together with sister entities within the portfolio, such as the Supported Employment Enterprises.

The committee believes that there is a minimal impact when the department and its entities work in silos on skills training and programmes to empower people living with disabilities.

The committee has directed the UIF to put measures in place to monitor and evaluate the impact made through its Labour Activation Programme. This programme is the department’s initiative to minimise unemployment and stimulate job creation through skills development and financial assistance to employers and employees through the Temporary Employer/Employee Relief Scheme (TERS); it is implemented through the UIF.

The committee has encouraged the Compensation Fund and UIF to strengthen their ICT infrastructure to improve the turnaround time on benefit payments and minimise queues at service centres.

Having been briefed on the 2025-2030 strategic plans, 2025/26 annual performance plans and the medium-term expenditure framework of the department and its entities, the committee will now meet on Friday, 27 June 2025, to consider its 2025 budget vote report.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.

President Museveni Welcomes Former Opposition Youth To National Resistance Movement (NRM), Commends Them For The Wise Decision


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The converts from the districts of Mubende, Kassanda and Mityana have been undergoing a two-week ideological training at the National Leadership Institute (NALI) in Kyankwanzi.

The 2025/2026 cohort of youth converts comprised 145 males and 46 females.  They were introduced to the principles of the NRM, its ideology, and other patriotic values.

During a meeting held at State House Entebbe, the President commended the youth for making what he called a wise and courageous decision.

President Museveni also pledged Shs 100m to support their SACCO as a token of encouragement and empowerment.

He also lauded the converts for abandoning political factions that, according to him, have long misled the youth and discouraged them from engaging in government programs meant to fight poverty and foster economic transformation.

“Those opposition groups are merciless. They use you for foreign-funded agendas and then tell you to shun government programs,” the President remarked.

“When we were giving out coffee seedlings under Operation Wealth Creation, they said the seedlings wouldn’t help them, but you have made the right choice, and I congratulate and welcome you.”

President Museveni further drew on his own political journey, sharing that he too was once an opposition supporter.

“I was in the Democratic Party from 1960 to 1970. Even though UPC rigged the elections in 1962, I told my fellow DP supporters, Obote may have stolen votes, but he didn’t steal your food. We had to be smart and take full advantage of the government’s programs,” he said.

He commended the youth instructors for equipping the converts with a strong understanding of NRM’s core principles particularly the third mission: socio-economic transformation.

“I am happy that your instructors taught you the mission of socio-economic transformation. As Africans, we must move from subsistence living to the money economy,” he said.

Modernizing African Livelihoods:

The President illustrated how daily life for most Africans still relies on outdated practices that need urgent modernization.

“In developed countries, machines fetch water. Here, our girls still carry jerry cans on their heads. We cook with firewood while others use gas or electricity. That’s what the NRM seeks to change,” he said.

The President also emphasized education as a key driver of transformation, highlighting the role of the government’s Universal Primary and Secondary Education (UPE and USE) programs as well as the Presidential Skilling Hubs.

“The skilling hub in Kassanda is proof that youth can access quality training for free. If we fully embrace free education, it will play a major role in changing lives.”

President Museveni further revisited his Four-Acre Model, a strategy he first introduced in the 1996 NRM Manifesto to guide smallholder farmers towards profitable and calculated farming.

“If you have only two acres and grow cotton or tobacco, you’ll remain poor. But if you plan well, with ekibalo (calculation) you can generate serious income,” he explained.

For those with four acres, the President advised; One acre for coffee (earning up to Shs15 million per year), one for fruits, one for pasture to support up to eight cows, and one for food crops.

He added that backyard farming activities like poultry, piggery (for non-Muslims), and fish farming could generate even more income.

“Fish farming, for instance, can bring in up to Shs 80 million a year from one acre of ponds,” President Museveni revealed.

Industrialization and ICT as Game Changers:

He also pointed to Uganda’s manufacturing sector, which now employs over 1.2 million people, more than double the public service sector’s 480,000.

“From small dairy coolers to big factories, manufacturing has become a major source of jobs and wealth,” he said.

The President also praised growth in the services sector particularly tourism, transport, professional services, and religious work which employs about four million Ugandans.

Finally, he underscored the transformative potential of ICT, especially in business Process Outsourcing (BPO).

“With our strong internet and telecom infrastructure, Ugandans can now work for international companies and earn globally competitive salaries right from here,” President Museveni noted.

Ms. Hellen Seku, the Commissioner of the National Secretariat for Patriotism Corps (NSPC), expressed gratitude to President Museveni for hosting the youth converts from parishes, villages, and sub-counties in the three districts.

“We thank Your Excellency for welcoming these young people, many of whom were once leaders in the opposition. This meeting marks a turning point in their journey of transformation,” Ms. Seku said.

“These youth have been receiving ideological training focused on civic duty, patriotism, and the core principles of the NRM. The goal has been to equip them to become responsible, value-driven citizens who contribute meaningfully to their communities,” she explained.

Ms. Seku also emphasized that the training covered key themes such as teamwork, peacebuilding, national unity, embracing government programs, and serving the country with loyalty and discipline.

“We have taught them the pillars of society, how to protect the peace we have, and the importance of working together as one. These young people are now prepared to return home and help drive progress in their areas,” she added.

She further urged the youth to be responsible citizens and take care of both the environment and their personal health.

“Go back and plant trees in your communities. Let us care for our environment. Above all, maintain discipline in your health. HIV/AIDS has become rampant in our societies. Guard yourselves. It is spreading like wildfire, and we must stop it,” she advised.

On his part, Col. Okei Rukogota, the Director of NALI expressed his appreciation to President Museveni for his unwavering efforts in empowering young people through anti-poverty programs.

“Your Excellency, I thank you for your tireless fight against poverty among the youth. Your leadership continues to create opportunities for transformation,” Col. Rukogota said.

He also commended the NALI team for their dedication and commitment in organizing and facilitating the ideological training for the youth.

“To the entire NALI team, thank you. Without your hard work and support, this success would not have been possible,” he added.

Col. Rukogota further applauded the converts for their commitment to learning and embracing the values and principles taught during the retreat.

“I also thank the youth converts. Your willingness to learn and change is a sign of true patriotism. Uganda needs you,” he said.

Speaking on behalf of the group, Mr. Mutumba Byakatonda, a youth representative and councilor from Mubende Municipal Council, said the converts were once affiliated with opposition political parties but have now decided to cross to the NRM.

“Your Excellency, I personally crossed to the opposition after you commissioned the Mubende Central Market. However, today, I stand before you as a proud convert back to the NRM,” he said.

“Your Excellency, for a while, many of us were misled by opposition narratives. We were persuaded into ideologies that alienated us from government programs aimed at creating wealth and improving livelihoods,” Mr. Byakatonda explained.

“We sincerely thank the Director and entire staff at NALI for the training, mentorship, and welfare support. Through lessons on the principles and ideology of the NRM, we have experienced a complete mindset change.”

He thanked the President for his continued facilitation, time, and attention, saying: “We are deeply grateful for your support and for sparing time out of your busy schedule to meet us today. We do not take it for granted.”

As part of their next steps, the group expressed interest in registering a Youth Converts SACCO across their districts.

“We plan to form a SACCO where we can access funds at low interest rates and start small businesses. Your Excellency, we also humbly request coffee seedlings under Operation Wealth Creation to help us kick-start our income-generating activities and contribute to the national development agenda,” Mr. Byakatonda said.

He concluded by reaffirming their loyalty to the NRM government.

“We are ready to enroll fully into the NRM and support you in building a transformed and prosperous Uganda,” he added.

Distributed by APO Group on behalf of State House Uganda.

Future political agreements must reflect the aspirations of all Libyans, say southern representatives in public consultation


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Special Representative of the Secretary-General Hanna Tetteh met with twenty-eight representatives from the south at UNSMIL’s premises in Tripoli. The meeting aimed to gather their views on the Advisory Committee’s recommendations as part of the Mission’s ongoing public consultations.

The representatives from Sebha, Birak al-Shati’, Murzuq, Ghat, Jufrah, Ubar, Gatroun and Tahala, welcomed the briefing by SRSG Tetteh on the outcomes of the Advisory Committee. They emphasized the importance of equal representation, equitable development, and fair access for all to political mechanisms. They highlighted that any future agreement must reflect the aspirations of all Libyans, especially those historically marginalized.

Participants addressed the representation of cultural components in the political process, saying: “15% is not enough, Libya is ethnically diverse, and we must guarantee fair representation to all Libyans.” Many participants also expressed support for option four, viewing it as a path that would grant Libyans a greater voice in the process but highlighted concerns it could repeat previous failed political processes.

Comprising of  mayors, municipal council members  and representatives of political parties, the meeting was also attended by Deputy Special Representative of the Secretary General, Political, Stephanie Koury, who briefed the participants on the full process of the Advisory Committee’s report.   

UNSMIL published the Executive Summary of the Advisory Committee’s Report in May, including its four proposed options to move the political process forward. 

It also launched a public consultation and survey  to ask people to put forward their recommendations and ideas and decided which of these options they would prefer:  

  1. Conducting presidential and legislative elections simultaneously;  
  2. Conducting parliamentary elections first, followed by the adoption of a permanent constitution;  
  3. Adopting a permanent constitution before elections; or  
  4. Establishing a political dialogue committee, based on the Libyan Political Agreement to finalize electoral laws, executive authority and permanent constitution.

Distributed by APO Group on behalf of United Nations Support Mission in Libya (UNSMIL).

Eritrea: Nationals Abroad Commemorate Martyrs Day


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Eritrean nationals in Italy, France, the Netherlands, South Africa, Belgium, Uganda, Zambia, Zimbabwe, and the US commemorated Martyrs Day by renewing their pledges and contributing towards augmenting the Martyrs Trust Fund and supporting families of martyrs.

At commemorative events held in various South African cities, nationals contributed 36,510 Rand towards the Martyrs Trust Fund and pledged an additional 16,000 Rand. Three nationals also pledged to assume responsibility for supporting one martyr’s family each.

Nationals in various cities across Italy expressed their readiness to uphold the trust of the martyrs and contributed 39,000 Euros.

Eritreans residing in several cities in France commemorated Martyrs Day with various programs honoring the martyrs who gave their lives for Eritrea’s independence and sovereignty. They also made material contributions towards augmenting the Martyrs Trust Fund.

At a commemorative event organized by nationals in the Netherlands, over 53,000 Euros were contributed in support of the Martyrs Trust Fund and 24 families of martyrs.

Similarly, nationals in the US cities of Harrisburg, Pennsylvania, and Cincinnati, Ohio, commemorated Martyrs Day. Nationals in Harrisburg contributed 3,055 US Dollars in support of martyrs’ families.

Nationals in Belgium, Uganda, Zambia, and Zimbabwe also marked Martyrs Day with candlelight vigils and walkathon programs.

Distributed by APO Group on behalf of Ministry of Information, Eritrea.

South Africa: Any Review of Labour Legislation Must Be Clear About Its Intentions, says Select Committee Chair

Source: Africa Press Organisation – English (2) – Report:

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The Chairperson of the Select Committee on Economic Development and Trade, Ms Sonja Boshoff, has called on the Department of Employment and Labour to give careful thought to what it aims to achieve through the review of South Africa’s labour legislation.

The department informed the committee that it intends to review and amend approximately six pieces of labour legislation – a process that has already commenced at Cabinet level. On Wednesday, the department presented its strategic plan and annual performance plan to the committee.

Ms Boshoff emphasised that the review of labour legislation must take into account the country’s stagnant economy and soaring unemployment rate. “Any review or future amendment to labour legislation must be practical and responsive to the realities faced by small players in the economy. Legislation must serve as an enabler for job creation and economic growth,” she said.

“In today’s South Africa, we should be preoccupied with reducing red tape and moving away from race-based policy positions. This is not to suggest that the economic empowerment of the previously disadvantaged should be abandoned, but rather that we must rethink our priorities and focus on the broader population – not just the politically connected.”

Ms Boshoff added that the legislative review process must unlock economic participation, particularly for emerging and marginalised market players. “As a committee, we will not tire in advocating for conditions that make it easier to do business and that create opportunities for deserving and competent individuals. It is truly ironic that labour legislation, which should be designed to protect and promote employment, is in some cases the very reason job creation is being stifled. We still owe it to South Africans to empower both job seekers and potential employers alike,” Ms Boshoff said.

– on behalf of Republic of South Africa: The Parliament.

Ghana, Eswatini forge stronger ties during King Mswati III’s state visit

Source: Africa Press Organisation – English (2) – Report:

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Ghana rolled out the red carpet for His Majesty King Mswati III of the Kingdom of Eswatini, signalling a strong mutual desire to deepen bilateral relations and promote the cause of African unity and trade.

President John Dramani Mahama and Vice President Naana Jane Opoku-Agyemang officially welcomed the King and Queen at the presidency’s forecourt with a vibrant display of Ghanaian music and dance.

Following the ceremonial reception, President Mahama and King Mswati III engaged in bilateral talks in the Credentials Hall, culminating in the signing of a Memorandum of Understanding (MoU) to establish a Permanent Joint Commission for Cooperation. The agreement will provide a formal framework for enhancing cooperation across various sectors.

In his remarks, President Mahama welcomed the Eswatini delegation, emphasising the significance of the visit in cementing the existing ties. “We’re very honoured to have you on this visit,” President Mahama stated. “We believe that this visit would cement the ties and relationship between our two countries.”

President Mahama highlighted Ghana’s historical role as the first sub-Saharan nation to gain independence and its contribution to liberation struggles across the continent, welcoming the King to the “country of freedom and justice.” He reiterated Ghana’s commitment to fostering closer ties among African nations, recalling the vision of Ghana’s first president, Dr Kwame Nkrumah, for African unity.

The Ghanaian President also emphasised the importance of the African Continental Free Trade Area (AfCFTA) protocol, which Ghana has ratified. The protocol enables the free movement of goods and services across African markets. He hoped the bilateral discussions would strengthen cooperation and leverage the opportunities presented by the AfCFTA.

“Your visit and the bilateral discussion that will take place after will form the framework for the cooperation between our two countries,” President Mahama remarked.

President Mahama also stated that the King’s visit would feature a significant cultural exchange. The king is scheduled to visit the Asante Kingdom to meet his “brother,” His Royal Majesty the Asantehene Otumfuo Osei Tutu II, who had previously visited the Presidency in anticipation of the King’s arrival.

– on behalf of The Presidency, Republic of Ghana.

United Nations (UN) Women Executive Board lauds progressive gender equality and women’s empowerment work in Zimbabwe

Source: Africa Press Organisation – English (2) – Report:

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UN Women Executive Board’s visit to Zimbabwe from 4-10 May 2025 marked a pivotal moment in the country’s ongoing efforts to advance gender equality and women’s empowerment. The visit, led by H.E. Ms. Nicola Clase, Ambassador and Permanent Representative of Sweden to the United Nations and President of the UN Women Executive Board, provided an opportunity to showcase the impact of UN Women’s programming in the country while strengthening strategic partnerships with key stakeholders.

“I note the strong legal frameworks for gender equality and women’s empowerment,”acknowledged Ambassador Nicola Clase, President of the UN Women Executive Board.  “We encourage the government and partners to focus on the effective implementation of these laws.”

High-Level Engagements

Throughout the week, the delegation engaged with government officials, development partners, civil society organizations, traditional leaders, the private sector, and women’s rights organizations to deepen collaboration and assess progress on gender-responsive policies and initiatives.

In a productive meeting with the country’s president , H.E  Emmerson Mnangagwa, there was reaffirmation of Zimbabwe’s commitment to gender equality. “We believe gender equality is not only a fundamental right, but also a necessity for national growth. Zimbabwe remains steadfast in its commitment to empowering women and girls,” assured President Mnangagwa.

The delegation also met  Senator Monica Mutsvangwa, Minister of Women Affairs, Community, and Small and Medium Enterprises Development. She highlighted the government’s ongoing initiatives saying,”Zimbabwe has made significant strides in advancing women’s rights, and will continue to strengthen policies that ensure women’s full participation in economic and social development.”

Jacob Francis Mudenda, Speaker of Parliament, emphasized the importance of inclusive governance. “Ensuring women’s full participation in governance and business will drive Zimbabwe forward into a more inclusive future,” he said.

Field Visits Showcasing Impact

The Executive Board members visited Umzingwane Safe Market, Epworth Safe Market, Maker Space Innovation Hub, and the Knowledge Hub at Rosaria Memorial Trust where the team saw the impact of innovative approaches to supporting women’s economic empowerment and safety in informal marketplaces. These engagements demonstrated UN Women’s commitment to creating sustainable opportunities for women, improving livelihoods, and fostering gender-responsive practices.

Speaking about her transformation as a clothing trader in the market, Sarah Muchengeti had this to say, “The biggest challenge before the Epworth Safe Market was finding a secure and reliable place to work. This initiative gave me a proper workspace, where I can now take larger orders and grow my operation. My vision  has changed—I am no longer just working to survive; I am building a legacy. My family now sees me as a successful businesswoman, and my children are inspired by what I have accomplished.”

Reflections from the Region and Country 

The visit by the board was a proud moment for the UN Women Zimbabwe team, whose extensive preparations ensured a seamless and impactful experience.

Anna Mutavati, Regional Director for East and Southern Africa, emphasized the significance of the engagement, “This visit reinforced the importance of partnerships in driving change. It is inspiring to see the Executive Board acknowledge the progress we’ve made in Zimbabwe.”

Fatou Lo, UN Women Zimbabwe Country Representative, who spearheaded  the visit, highlighted the collaborative effort involved, “This was a collective achievement, the dedication of our teams and partners made it possible to showcase our work and deepen strategic discussions on gender equality.”

Lovenes Makonense, Deputy Country Representative, reflecting on the experience, said, “Being able to present the tangible impact of our work was incredibly rewarding. The enthusiasm from stakeholders reaffirmed our mission to empower women across all sectors.”

Looking Ahead

As the Executive Board concluded its visit, the momentum gained from these discussions will continue to shape UN Women’s programming in Zimbabwe. The visit amplified the power of collaboration and the need for sustained investment in gender equality initiatives.

UN Women Zimbabwe remains deeply appreciative of all partners, stakeholders, and government officials who contributed to the success of this visit. As the team reflects on the week-long engagements, one message remains clear: the commitment to empowering women in Zimbabwe is stronger than ever.

– on behalf of UN Women – Africa.

Eritrea: Human Rights Council must vote to extend Special Rapporteur’s mandate

Source: Africa Press Organisation – English (2) – Report:

Ahead of the 59th session of the UN Human Rights Council (HRC) which is scheduled to decide on numerous draft resolutions between 4th and 7th July, among them a resolution to extend the mandate of the Special Rapporteur on Eritrea and another to end the mandate of the Special Rapporteur, Amnesty International’s Regional Director for East and Southern Africa, Tigere Chagutah, said:

“The Special Rapporteur’s work in Eritrea is far from finished – member states of the UN Human Rights Council must vote to extend the Special Rapporteur’s mandate and address the ongoing human rights violations as well as the lack of accountability for ongoing and past abuses. The European Union, which is leading the resolution to extend the mandate, should further strengthen it and heed the Special Rapporteur’s calls on the need for accountability, as we prepare to mark a decade since the Commission of Inquiry on Human Rights in Eritrea warned that crimes against humanity may have been committed in the country.

“Eritrea’s attempt to table a counter resolution, designed to force an end to the Special Rapporteur’s mandate, is a cynical attempt to undermine the UN human rights system. HRC member states should reject this show of open defiance against the body’s mechanisms by voting against it”

Background

The mandate of the UN Special Rapporteur on the human rights situation in Eritrea was created by the UN Human Rights Council in 2012 and supplemented by a two-year Commission of Inquiry on Human Rights in Eritrea from 2014 to 2016.

Initial resolutions maintaining the Special Rapporteur on Eritrea were led by Djibouti and Somalia since 2012 until 2019.

Speaking to the ongoing HRC session on 16 June the Special Rapporteur emphasized that “nearly a decade has passed since the Commission of Inquiry on Human Rights in Eritrea concluded that crimes against humanity may have been committed in a context of widespread and systematic human rights violations. Yet, no meaningful progress has been made toward accountability.”

Following this presentation, Eritrea announced that it would counter the annual EU-led resolution with a resolution of its own to terminate the mandate of the Special Rapporteur.

– on behalf of Amnesty International.

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Djibouti: Staff Concluding Statement of the 2025 Article IV Mission

Source: Africa Press Organisation – English (2) – Report:

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Djibouti has been navigating regional tensions well, with robust growth, moderate inflation, and recovering reserves. In response to global uncertainties and domestic debt challenges, the authorities plan significant fiscal consolidation, including leveraging state-owned enterprises (SOE) dividends meaningfully, and advancing creditor dialogue. The authorities remain dedicated to investing in human capital and creating favorable investment conditions for job creation.  

Djibouti’s economic resilience and contribution to regional stability 

Djibouti helps maintain regional stability by supporting maritime security and facilitating humanitarian responses during crises. Djibouti’s GDP per capita has effectively doubled over the past decade thanks to significant investments that have contributed to the modernization of the economy. However, declining government revenues and increasing debt service have placed considerable strain on public finances, leading to unsustainable levels of public debt and diminishing reserves. Growth has not created enough jobs in the formal sector, while fiscal space to finance development needs is limited.

The authorities are leveraging Djibouti’s growth resilience to advance fiscal consolidation and rebuild reserves. Growth is expected to have exceeded 6.5 percent in 2024 due to increased transshipments amid Red Sea tensions, while moderate international food and energy prices kept inflation in check. The government deficit was reduced from 3.5 percent of GDP in 2023 to 2.6 percent in 2024 following a brief period of fiscal overruns and deficit monetization, and reserves have begun to recover partially offsetting the decline observed since late 2023, though they remain below the monetary base. 

The outlook is positive but subject to risks in an uncertain global context. Growth is projected to remain dynamic at around 6 percent this year and to continue over the medium term, albeit at a slower pace. Ethiopia’s robust economy is expected to boost Djibouti’s port activities; however, fiscal consolidation and the phasing out of large-scale investments may temper growth. Key risks include regional conflicts potentially increasing migration and affecting social stability amid a constrained fiscal space, and trade policy shifts that could depreciate the dollar and Djibouti franc, enhancing service exports but also raising inflation. Nonetheless, it is worth noting that Djibouti has successfully navigated several shocks over the past few years, including COVID-19, the 2022 Tigray crisis, the Ukraine war, and the 2024 Red Sea maritime disruptions.

Leveraging resilience for fiscal sustainability and rebuilding reserves  

In the face of high global and regional uncertainty, Djibouti needs to quickly strengthen its economic resilience by restoring debt sustainability, safeguarding the currency board, and fostering inclusive growth. To this end, the authorities intend to strengthen fiscal consolidation and enhance financial transparency and governance of state-owned enterprises (SOEs) to unlock sustainable and meaningful dividend contributions to the national budget, restore reserves, and encourage private sector growth while protecting vulnerable populations.  

Durable fiscal consolidation is essential for restoring debt sustainability. The substantial fiscal adjustment frontloaded in the 2025 budget and the balanced budget target for 2026 onward are welcome steps. To sustain progress, it is essential that all governmental entities endorse annual fiscal targets that align with a medium-term fiscal consolidation strategy. Success depends on robust expenditure management via the diligent operationalization of the recently approved Public Financial Management Reform Strategy and Action Plan 2024–27. Furthermore, a comprehensive fiscal roadmap should continue to broaden the tax base by enhancing VAT and capital income taxation, rationalizing tax exemptions included in the investment code and the Free Zones regime, and finalizing the digitization of tax agencies. The effective establishment of the tax policy unit remains a priority for accurately assessing tax bases and enhancing tax reform efficiency. Operationalizing the recently created large taxpayer office will also bolster compliance and revenue collection.

As Djibouti negotiates new terms for debt liabilities with creditors, well-managed and profitable SOEs can significantly aid national fiscal consolidation and restore reserves at the Central Bank of Djibouti (CBD), particularly following the dissolution of the Sovereign Wealth Fund (SWF). Building on ongoing efforts to improve SOE transparency and governance, it will be critical for the Executive Secretariat in charge of the State Portfolio (SEPE) to collect all SOEs’ financial statements and monitor their performance. Swiftly implementing the Code of Good Governance is also essential for establishing a more transparent dividend policy tied to SOE performance, thereby mobilizing dividends more consistently and meaningfully for the budget, improving SOE efficiency and services, and appropriately right-size them. Additionally, fiscal transparency can be strengthened by discontinuing financial settlement practices for clearing government arrears with SOEs, and by improving coordination among the Ministry of Budget, line ministries, and SEPE for more effective budget risk management.

Alongside fiscal consolidation, completing ongoing debt negotiations and addressing outstanding arrears with external partners are critical for debt sustainability. Equally important is implementing binding limits on borrowing for the central government, SOEs, including their participation in public-private partnerships, and ensuring these are enforced by the Public Sector Debt Committee. 

The mission is encouraged by the recent recovery in reserves and urges continued progress. To strengthen the currency board, the authorities plan to amend the CBD law to enhance its autonomy, which will help sustain reserves, exchange rate, and inflation stability. They also plan to introduce reserve requirements as a prudential tool, with implementation expected to follow a phased approach. Additionally, under MENAFATF’s enhanced monitoring, Djibouti is reforming its AML/CFT framework, improving the business climate, and enhancing oversight of the banking sector due to its significant offshore component and rising government exposure. To facilitate policy making, the authorities are leveraging technical assistance provided by the IMF to enhance their coverage and quality of statistics relevant to surveillance, with a focus on national accounts, the fiscal and external sectors.

Advancing inclusivity through private sector development and employment creation  

The government aims to foster economic growth and social equity. They aim to improve the existing targeting of the current fuel subsidy scheme. In order to create a more effective and equitable social protection system and reduce budget exposure to international energy prices, the authorities should gradually replace the current subsidy system with the strengthening of targeted cash transfers to the most vulnerable households, relying on the national social register. To attract investments and create jobs, they are enhancing access to education and job training under the 2021–35 education master plan. They aim to diversify the economy in sectors such as logistics and connectivity, tourism, agribusiness, and fisheries. To enable economic diversification, it is essential to develop a comprehensive roadmap with specific actions aimed at enhancing access to finance, streamlining administrative procedures, and expanding reliable and affordable internet services and electricity, including through increased bill collection, technical efficiency, and the adoption of cost-efficient renewable energy. These initiatives will enhance Djibouti’s business environment, which is already supported by a stable macroeconomic climate, a currency board, ports infrastructure, and connectivity to Ethiopia’s large market, all aligning with the objectives of Djibouti Vision 2035.

 “The mission team expresses deep appreciation to the Djiboutian authorities and other counterparts for their warm hospitality, excellent cooperation and candid discussions, and looks forward to continuing close engagement.” 

– on behalf of International Monetary Fund (IMF).