IMF-World Bank Spring Meetings

Washington, April 20, 2026 - Djibouti has warned of far-reaching and “exceptional” consequences of the current global crisis on African economies, during the IMF-World Bank Spring Meetings held from April 13 to 18 in Washington.

Representing Djibouti, Central Bank Governor Ahmed Osman Ali described the global environment as “unprecedented,” citing the ongoing Middle East tensions and disruptions to the Strait of Hormuz, a critical maritime corridor through which an estimated 20% of global oil flows.

He noted that these disruptions have triggered sharp increases in energy prices, higher maritime transport costs, and widespread supply chain instability, with direct implications for international trade and food systems.

Despite these external pressures, Djibouti reported continued macroeconomic resilience, with growth estimated at 6.5% in 2025 and projected at around 6% in 2026, supported by strong port activity and infrastructure-driven economic performance. Authorities also indicated that inflation remains contained and the banking sector stable.

However, officials cautioned that this resilience remains fragile due to structural vulnerabilities, particularly the country’s heavy reliance on imported food and energy. Rising freight and energy costs are increasingly affecting both businesses and household purchasing power.

Djibouti has responded with a series of emergency measures, including price controls, strategic stock management, prioritisation of essential imports, and targeted support interventions, particularly in the energy sector. A national task force has also been activated to coordinate responses between public and private actors.

During discussions with the IMF Managing Director, the Central Bank Governor described the situation as a “tipping point,” stressing that the intensity of current global shocks is placing significant strain on fiscal stability, particularly through rising fuel import costs and price stabilisation policies that have increased pressure on public finances.

He also highlighted the social dimension of the crisis, noting that food inflation remains particularly severe in a country where households spend a large share of their income on basic consumption needs.