• Djibouti, Visa sign deal to develop national digital wallet
• Project aims to expand digital access, boost financial inclusion
• No final agreement or timeline announced for implementation

Djibouti's government signed a memorandum of understanding with U.S. payment solutions provider Visa on Tuesday, September 16, to develop a national digital wallet, dubbed "Smart Wallet." The authorities view the initiative as a catalyst for accelerating the country's digital transformation.

According to a statement from the Ministry of Digital Economy and Innovation, "this project will enable citizens, entrepreneurs and residents to access public services, digital payments and digital identity within a secure and inclusive environment."

Djiboutian authorities consider digital payments a central pillar of the digital economy and a key driver for its development, as highlighted in a 2024 World Bank report.

In a study conducted with U.S. strategy consulting firm Kearney, Visa notes that digitizing interactions between citizens and the public sector can help governments achieve strategic objectives. These include improving access to public services, strengthening trust in government among citizens and businesses, fostering innovation for small businesses and boosting overall prosperity by creating a favorable environment for individuals, businesses and the broader economy.

The ministry expects the initiative to broaden financial inclusion in the country, where the World Bank reports only 25% of the 1.1 million population holds a bank account. The exact format of the digital wallet remains unclear. It is not yet known whether it will be a smartphone application or also incorporate the USSD protocol. If the latter is not included, a segment of the population using basic phones could be excluded.

Beyond this uncertainty, it is worth noting that the government and Visa have only signed a memorandum of understanding to date. While this signals a mutual willingness to collaborate, it does not guarantee a definitive agreement for the development of the national digital wallet. No timeline has been announced for the next steps.

Isaac K. Kassouwi