East Africa Bank, one of the three Islamic banks operating in Djibouti, is close to obtaining a guarantee of up to $5 million provided by the International Finance Corporation (IFC) under its global trade finance program.

The resource will support local import-export companies engaged in cross-border trade. It will help maintain the flow of essential goods (medical equipment and other goods) into the country.

"The partnership will secure trade-related payment obligations. Through our trade program, banks can support the smooth flow of trade globally, as trade is a key driver of economic growth," said Cheick-Oumar Sylla, IFC's head in Djibouti.

The announced facility follows a consulting agreement signed last April between the IFC and the Djibouti bank. It aims to help East Africa Bank, which offers financing solutions in accordance with the principles of Islamic law, to develop effective financial risk management systems, credit, and enable the Bank to attract capital and investors.

The financial sector in Djibouti is dominated by banks, which account for more than 94% of the country's financial assets.

Chamberline Moko