Djibouti has intensified efforts to strengthen fiscal discipline by expanding training for public finance officials, as the government pushes ahead with reforms to improve budget management amid sustained fiscal pressures and international recommendations.
The country’s Public Finance Training Center (Centre de Formation en Administration Financière – CAF) held a training session on Sunday, January 18, at the People’s Palace, bringing together civil servants from the Ministry of Budget for practical instruction in public finance management. The session was led by international experts Stéphane Kessler and Fabien Delome and was attended by senior officials, including CAF Director General Abdourazack Khaireh Bouraleh.
The training programme is funded by the French Development Agency (AFD) and benefits from technical assistance provided by Expertise France. It is designed around short, targeted modules aimed at rapidly strengthening operational skills among public servants, complementing longer academic or professional training programmes.
According to officials, the approach is intended to produce “job-ready” civil servants capable of immediately contributing to improved budget planning, execution and oversight. The modules focus on core areas of public financial management, including budget preparation, expenditure control, transparency and compliance with fiscal rules.
Since CAF was established, nearly 100 civil servants have completed its training programmes and now occupy key roles across the Ministry of Budget and other public institutions. Authorities say this growing pool of trained staff is already contributing to improved coordination and technical capacity within the public finance system.
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Further sessions are scheduled to be rolled out gradually over 2026 and 2027, as part of a longer-term capacity-building strategy. The first training session targeting entry-level staff is expected to take place in February or March, following a competitive selection process based on a public call for applications, CAF officials said.
The expanded training initiative comes as Djibouti faces mounting pressure to strengthen fiscal sustainability. Under its 2024–2027 government action plan, authorities have committed to a series of reforms aimed at tightening budget discipline, broadening the tax base and improving transparency in public spending.
Sector reviews conducted in recent years have highlighted weaknesses in budget execution, revenue mobilisation and expenditure monitoring, prompting calls for stronger institutional capacity and better-trained personnel within the public administration. Officials see the CAF programme as a key tool to address these gaps and support the implementation of fiscal reforms.
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International financial institutions have echoed these concerns. In its 2025 assessment, the International Monetary Fund urged Djibouti to accelerate efforts to consolidate public finances, warning that elevated fiscal deficits and debt levels could undermine long-term stability if left unaddressed.
The IMF recommended measures including raising tax revenues, improving tax administration and increasing dividend income from state-owned enterprises. According to the Fund, such steps could help restore debt sustainability and strengthen foreign exchange reserves, even as the economy continues to post solid growth driven by logistics, ports and infrastructure-related activity.
Despite positive growth prospects, the IMF cautioned that fiscal deficits are expected to remain high in the near term, underscoring the need for sustained reforms and stronger public financial management to prevent further deterioration in government finances.
Djibouti’s reform agenda has also attracted support from international partners. In January 2025, the World Bank approved $20 million in financing aimed at improving public finance governance and expanding digital public services. The programme seeks to modernise tax administration systems, enhance efficiency in revenue collection and increase transparency in public spending through greater use of digital tools.
Officials say the World Bank support complements ongoing training and institutional reforms, creating a more comprehensive framework for strengthening fiscal governance. Together with capacity-building initiatives such as those led by CAF, authorities hope the measures will help improve budget credibility, reinforce accountability and support sustainable economic development.
As Djibouti navigates rising spending needs alongside fiscal constraints, the government has signalled that strengthening human capital within the public finance system will remain a priority, with training and institutional reform seen as central to restoring and maintaining fiscal discipline.
