Djibouti's private sector is 78% informal, mostly in the capital, and not growing

Djibouti's economy grew by 6.5% in 2025, but most jobs are informal and concentrated in the capital. This means the country's economic growth is not creating enough formal jobs for its young population.

Djibouti's economy relies heavily on its port and services in Djibouti City. But the vast majority of private sector jobs are informal, meaning they lack benefits, security, and contribute little to the tax base. This report highlights a structural problem: economic growth is not translating into broad-based job creation, especially for young people entering the workforce.