African Development Bank provides $22 million grant for urban road rehabilitation in Djibouti City
By Global Infrastructure Sherpa · Feb 19, 2026
Integrated Urban Infrastructure and Climate Adaptation Project
Project
The African Development Bank provided a $22 million grant from the African Development Fund (ADF) to support rehabilitation of seven kilometers of urban roads in Djibouti City as part of Phase I of the Integrated Urban Infrastructure and Climate Adaptation Project.
Deal Analysis
The African Development Bank (AfDB) has announced a $22 million grant from the African Development Fund (ADF) to Djibouti for the rehabilitation of seven kilometers of urban roads in Djibouti City. This financing supports Phase I of the Integrated Urban Infrastructure and Climate Adaptation Project. The East and Southern African Trade and Development Bank (TDB) is also involved as an investor. This deal signifies a commitment to improving urban infrastructure and climate resilience in Djibouti, a strategically important location in the Horn of Africa.
The grant from the AfDB is notable due to its focus on urban road rehabilitation, a critical component of urban development and connectivity. The involvement of the AfDB and the TDB highlights the importance of multilateral development banks in supporting infrastructure projects in Africa. While the $22 million grant is relatively modest in size, it represents a significant investment for Djibouti and could catalyze further infrastructure development in the region. The project's focus on climate adaptation is also noteworthy, reflecting a growing emphasis on sustainable infrastructure development.
- AfDB provides a $22 million grant for urban road rehabilitation in Djibouti City.
- The project is part of Phase I of the Integrated Urban Infrastructure and Climate Adaptation Project.
- The East and Southern African Trade and Development Bank (TDB) is involved as an investor.
- The deal highlights the importance of multilateral development banks in African infrastructure development.
Market Context: The transport sector in Djibouti is crucial for its economy, given its strategic location as a gateway to East Africa. Investments in road infrastructure are essential for facilitating trade, improving connectivity, and supporting economic growth. The focus on climate adaptation reflects the increasing awareness of the need to build resilient infrastructure in the face of climate change.
Source Intelligence
KEY DETAILS
The agreements include a $22 million grant from the African Development Fund (ADF) for urban road rehabilitation, a $30 million ADF grant for the Djibouti‑Ethiopia‑South Sudan Regional Transport Corridor Project, and a grant and loan of $14 million each from the Green Climate Fund for the Building Resilience around Food and Livelihoods (BREFOL) program.
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Deal Size
African Development Bank and Djibouti Sign Agreements for $80 million to strengthen Infrastructure and food Security
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Location
will support rehabilitation of seven kilometers of urban roads in Djibouti City as part of Phase I of the Integrated Urban Infrastructure and Climate Adaptation Project.
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Announcement
Posted on February 19, 2026
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Signing
African Development Bank and the government of Djibouti have signed, on 5 February, agreements for $80 million in financing
PARTIES MENTIONED IN SOURCE
A
African Development Bank
lender
"African Development Bank and the government of Djibouti have signed, on 5 February, agreements for $80 million in financing"
D
Djibouti
borrower
"African Development Bank and the government of Djibouti have signed, on 5 February, agreements for $80 million in financing"
high quality
Enriched Feb 22, 2026
Market Context
This deal is part of the Transport sector in Djibouti.
1 of 110 Transport deals tracked this month · Updated daily
Global Infrastructure Sherpa