Djibouti to get more banks this year

Mar 23, 2010

The financial sector in Djibouti is set to expand over the coming months, the Governor of the central bank said in an interview with Reuters.

Djama Haid told the news agency a further two foreign banks are set to start business in the country this year, while the number of bank accounts is predicted to almost double by the beginning of 2011.

Warka Bank for Investment and Finance and Shoura Bank are both expected to enter Djibouti in the coming months and Mr Haid said the finance market "has seen an explosion" recently. "Last year eight new banks, Islamic and conventional, opened their doors and are doing well. More will arrive this year," he was quoted as saying.

He added the central bank is working on giving more people in the country access to finance, as presently just 15 per cent of the population holds a bank account, which is below the African average of 28 per cent.

Djibouti is one of five African countries - along with Nigeria, Zambia, Mali and Malawi - that received a share of a $187 million (€140 million) fund from the African Development Bank in September 2008.