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, according to a press release published on March 16, 2026. The funding will finance the Djibouti Groundwater Resilience and Water Supply Project (DJIRESA), marking Djibouti’s entry into the Horn of Africa – Groundwater for Resilience Program. The project targets rural populations where access to basic drinking water remains critically low.
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. Rural areas are most affected, where only 47 percent of residents have access to basic drinking water, compared to 83 percent in urban areas. Drought can cost the country up to 4 percent of GDP, with pastoral and rural communities bearing the heaviest burden.
DJIRESA is part of a broader $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. It will finance the construction and rehabilitation of rural water systems, expanding and restoring access to safe water.
The project will also 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 strengthen the capacity of the Rural Hydraulic Directorate through targeted training and the establishment of new regional offices. A national Groundwater Information Management System will be established, linked to the IGAD regional platform, alongside a Water Resources Master Plan.
Ilyas Moussa Dawaleh, Minister of Economy and Finance of Djibouti, stated:
“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.”
Fatou Fall, World Bank Group Joint Resident Representative for Djibouti, said the project “directly addresses those vulnerabilities while building the institutions and data systems Djibouti needs to sustainably manage its water resources for generations to come.”
The grant is financed by the International Development Association (IDA), which provides grants and low to zero-interest loans to low-income countries. 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. The DJIRESA project represents a key step in Djibouti’s broader effort to close the rural-urban water access gap.
