Djibouti Launches Community Fund to Drive Urban Development in Balbala

Djibouti, January 18, 2026 Djibouti’s Social Development Agency (ADDS) has launched a third call for local project proposals under a multi-million-euro urban development initiative, introducing a community development fund aimed at supporting neighbourhood associations in the rapidly growing municipality of Balbala, according to Djibouti News Agency. The announcement was made during a meeting with 37 community association leaders from the Layabley and Mosquaire districts on Sunday, where ADDS presented the Community Development Fund, a core component of the second phase of the Integrated Urban Development Program (PDUI2). Under the initiative, selected associations will each receive one million Djibouti francs (approximately $5,600) to implement business plans or community-based projects intended to improve local living conditions. The program prioritizes locally identified needs and encourages resident-led solutions to social and economic challenges. The meeting was attended by members of parliament and representatives of the French Development Agency (AFD), which is financing the program. The fund is designed to complement major infrastructure investments already underway in Balbala, including road construction, water distribution networks, and the development of community facilities. Balbala, located on the outskirts of Djibouti City, has experienced rapid population growth and significant westward expansion in recent years. PDUI2 seeks to address the pressures of urban densification by combining large-scale infrastructure development with targeted social and economic support at the neighbourhood level. Government representatives described the fund as a mechanism to strengthen the local socio-economic fabric, enabling residents to directly manage and implement improvements in their communities. Community leaders welcomed the transparent selection process, emphasizing the role of associations as key partners in sustainable urban development. The PDUI2 program forms part of a broader strategy by the Djiboutian government and international partners, including the AFD, to upgrade informal settlements and proactively meet the infrastructure and service needs of the capital’s expanding suburban population.