The government of Djibouti and the Saudi Fund for Development has signed a $5 million, about N807 million loan agreement to support Djibouti’s economic development.
According to the statement from the Saudi government sighted by NaijaAgroNet loan is to support Djibouti in its Small and Medium Enterprises (SMEs) and create 2,400 jobs for graduates.
The signing of the agreement was done by the Djibouti Minister of Economy and Industrial Finance, Ilyas Moussa, who signed on behalf of his country, while Yousef Bin Ibrahim al-Bassam signed for the Saudi Fund for Development.
According to the statement, a large proportion of the funds would be allocated to support women in the areas of agriculture, fishing and transport.
The Saudi Fund for Development NaijaAgroNet learnt is a Saudi government agency established by a royal decree in 1974, began operations in 1975 to channel bilateral aid to developing countries, primarily through grants and soft loans.
President Ismail Omar, in the statement also said that the government main concern through the provision of the loans and grants is to drastically reduce unemployment among the women, youths, including the construction and rehabilitation of hospitals and health clinics, expansion of water and sanitation services
The statement also revealed that the Saudi fund has offered export credit and insurance amenities for non-crude oil national exports in Africa, to promote domestic economic diversification that contributes to development within recipient countries.
*With additional report from NAN