NSI Group has opened a new branch in Djibouti. The company NSI Djibouti, incorporated in 2019, will start servicing the financial sector of Djibouti on the fourth quarter of 2020.
On the back of a rise in both capital investment and transport activity, Djibouti’s banking sector has seen considerable expansion in recent years. The most visible change has been the increase in the number of players in the market, which has led to an uptick in competitiveness and the expansion of products and services targeting local clients.
The increasingly robust regulatory role that is being adopted by the Central Bank of Djibouti (Banque Centrale de Djibouti, BCD) has led to the promulgation of various new rules – ranging from risk assessment frameworks and sharia compliance to regulations for new payment systems – which should help pave the way for increased retail and corporate activity.
Overall, financial services account for 13% of GDP. Banking accounts for the vast majority of Djibouti’s financial services industry, with 97% of assets. The insurance sector accounts for an additional 2.5% of assets, while microfinance is responsible for the remaining 0.5%.
The country’s recent high headline growth rate – which has hovered between 6% and 6.5% over the past 24 months – combined with legislation changes has led to a significant rise in the number of commercial banks, from two in 2006 to 11 by 2014. The penetration of banking services has not unexpectedly also experienced a steep rise, going from 5% of the country’s adult population in 2007 to 20% in 2015, according to the BCD. Source: Oxford Business Group