Fiscal Year 2025
Capacity Development Activities
Central Bank Operations
Improving Foreign Reserve Management
At the request of the Banque Centrale of Djibouti (BCD), METAC provided a technical assistance mission during 6-16 May aimed at improving BCD’s foreign reserve management. The BCD currently operates in a challenging environment with declining foreign reserves, resulting in currency board coverage ratio below 100 percent. The mission proposed that the BCD immediately adopt a comprehensive framework for the management of foreign exchange reserves, as it is currently subject to a high concentration of credit risk. The mission provided detailed documentation for an Investment Policy, Investment Strategy, and Investment Guidelines, calibrated to the BCD context. This includes limited investment in Shariah-compliant products to enable the remuneration of the required reserves of Islamic banks.
Government Finance Statistics and Public Sector Debt Statistics
Compiling government finance statistics
METAC conducted a technical assistance mission on government finance statistics (GFS) and public sector debt statistics (PSDS) for Djibouti’s Ministry of Budget during 15-29 August. The mission had a two-fold purpose: (1) to assess the current conditions for GFS compilation in the Ministry of Budget and (2) to raise the authorities’ awareness of the main GFSM 2014 concepts and compilation practices. The Ministry of Budget organized the workshop “Atelier de réflexion sur les statistiques de finances publiques” with a large number of participants from the Ministry of Budget and other institutions. The mission provided an overview of the GFSM 2014 and set a plan for aligning the statistical reporting with international standards and discussed current conditions for a re-start of the GFS compilation. The mission was followed by virtual meetings during September and October.
Public Financial Management
Analysis of Fiscal Risks related to State-owned Enterprises
During 12-16 May, a mission team worked with the Public Accounting Department at the Ministry of Budget (MoB) and held meetings with other stakeholders to analyze the current fiscal risk management systems linked to State-owned Enterprises (SOEs). The mission trained the DCP teams on the use of the SOE-"Health Check Tool”, developed by the IMF Fiscal Affairs Department. Fiscal risks were analyzed for two public enterprises, and recommendations were proposed for improving fiscal risk monitoring and management. Finally, MoB staff applied the "Health Check Tool” to a third SOE and analyzed the results with the mission team.
Revenue Administration
Strategic Plan and Generate Projects for the Djibouti Customs
METAC conducted a remote mission during 1-16 May to support Djibouti Customs in developing a strategic plan and generate projects which will implement the priorities of the plan, specifically focusing on the development of terms of reference for tiers of the selected governance framework and review of project initiative documents.
Supporting the reform management capacity of the tax administration
A workshop (22-26 September) on reform and project management provided skills to a team of 14 tax administration professionals who successfully completed the VITARA module on reform management. The mission recommended establishing a dedicated reform management team as an important governance element. The mission also highlighted establishing a fully-fledged Large Taxpayers Office (LTO) as a key priority to improve revenue mobilization and advised on the immediate steps to be taken in this regard.
Tax Policy
Establishing a new tax policy unit
A joint METAC – HQ remote mission assisted the Djiboutian Ministry of Budget during 17-30 September in establishing a new tax policy unit (TPU). The mission discussed the responsibilities of the planned TPU, international best practices, and the appropriate institutional framework to enable the TPU to conduct a reliable and independent tax policy analysis and formulate reform proposals. The mission tailored its recommendations to Djibouti’s institutional arrangements and called for formalizing the creation of the TPU through legislation to ensure transparency, accountability, and a meaningful mandate of the TPU.
