Ilyas Moussa Dawaleh: Djibouti’s Finance Minister Steering Economic Growth

Ilyas Moussa Dawaleh has served as Djibouti’s Minister of Economy and Finance since May 2011, making him one of the longest-serving and most influential figures in the country’s economic landscape. His tenure has been marked by ambitious development plans, a focus on attracting foreign investment, and navigating the challenges of a rapidly changing regional and global economy.

Dawaleh’s appointment came at a crucial time for Djibouti. The nation was strategically positioning itself as a vital trade and logistics hub for East Africa, leveraging its location at the Bab-el-Mandeb Strait. He quickly became a key architect of the country’s “Vision 2035” strategy, a long-term development plan aimed at transforming Djibouti into a middle-income nation by diversifying its economy, improving infrastructure, and creating employment opportunities. This vision heavily relies on attracting foreign direct investment (FDI), particularly in sectors like port infrastructure, logistics, energy, and tourism.

Under Dawaleh’s leadership, Djibouti has witnessed significant investment in its port infrastructure, including the development of new ports and free trade zones. He has been instrumental in negotiating deals with international partners, including China, to finance these projects. The expansion of Djibouti’s port capacity has significantly boosted its role as a transshipment hub, connecting East Africa to global markets. He champions the idea that Djibouti’s geographic advantage, combined with strategic investment, can make it a vital link in global supply chains.

Beyond infrastructure, Dawaleh has also focused on improving the business climate in Djibouti. He has overseen reforms aimed at simplifying regulations, reducing bureaucracy, and promoting transparency. These efforts are intended to make Djibouti a more attractive destination for foreign investors and encourage domestic entrepreneurship. He acknowledges the need to continuously improve the regulatory framework and address concerns about corruption to ensure sustainable and inclusive economic growth.

However, Dawaleh’s tenure has also faced challenges. Djibouti’s heavy reliance on FDI, particularly from a single source, has raised concerns about debt sustainability. The country’s public debt has increased significantly in recent years, prompting scrutiny from international financial institutions. Dawaleh has consistently defended Djibouti’s debt strategy, arguing that the investments are crucial for long-term economic growth and will ultimately generate the revenue needed to repay the loans. He also emphasizes the importance of diversifying funding sources and pursuing fiscal consolidation measures.

Furthermore, while Djibouti has experienced strong economic growth, the benefits have not been evenly distributed. Addressing income inequality and creating jobs for the country’s young population remain key priorities. Dawaleh has emphasized the importance of investing in education and skills development to equip Djiboutians with the tools they need to participate in the modern economy. He also advocates for policies that promote inclusive growth, ensuring that all segments of society benefit from Djibouti’s economic progress.

In conclusion, Ilyas Moussa Dawaleh has played a pivotal role in shaping Djibouti’s economic trajectory over the past decade. His focus on attracting foreign investment, developing infrastructure, and improving the business climate has transformed Djibouti into a key player in the regional economy. While challenges remain, his continued leadership will be critical in navigating the complexities of a globalized world and realizing Djibouti’s vision for a prosperous future.