05/11/2023

THE PRIME MINISTER PRESIDES OVER THE OFFICIAL LAUNCH CEREMONY OF DJIBOUTI’S FIRST CROWDFUNDING COMPANY

Last Thursday, Prime Minister Abdoulkader Kamil Mohamed presided over the launch ceremony of the first Crowdfunding company ‘Inclufin’ by the Djibouti Sovereign Wealth Fund (FSD) at Djibouti Palace Kempinski.

Several government members attended the ceremony, including the Minister Delegate for Digital Economy and Innovation, Mariam Hamadou Ali, the Chief Executive Officer of the Djibouti Sovereign Wealth Fund (FSD), Dr. Slim Feriani, the President of the Djibouti Ports and Free Zones Authority (APZFD), Aboubaker Omar Hadi, the Secretary-General of the Presidency, Mohamed Abdillahi Waïs, the Governor of the Central Bank, Ahmed Osman Ali, the President of the Djibouti Chamber of Commerce, Youssouf Moussa Dawaleh, parliamentarians, representatives from diplomatic and consular missions, as well as Technical and Financial partners from Djibouti.

This marks the establishment of the first crowdfunding platform in Djibouti, aiming to connect project owners, young entrepreneurs, startups, innovators, and potential investors. This represents an alternative and participative financial approach.
In the era of Fintech, digital revolution has profoundly altered financing mechanisms. This is why the Djiboutian State, through the Djibouti Sovereign Wealth Fund (FSD), is creating a flagship for the economy, a facilitating service, and a source of hope for the youth of Djibouti driven by the idea of establishing their own brand – ‘Inclufin.’
The name is a fusion of ‘inclusion’ and ‘finance.’ In essence, Inclufin is a crucial instrument for social and financial inclusion, promoting the integration of the informal economy.

This initiative involves an innovative digital financing mechanism that allows the solicitation of financial resources from individuals and institutions complementary to those mainly offered by banks. Inclufin also benefits from the support of the Djiboutian ecosystem, notably the Djibouti Sovereign Wealth Fund. It aims to be a launching pad for high-potential projects in Djibouti by facilitating a structured and secure connection between entrepreneurs and investors.
During his speech, Prime Minister Abdoulkader Kamil Mohamed depicted crowdfunding as complementary to the banking system, offering our young entrepreneurs the opportunity to directly address a broad audience, whether locals or members of the Djiboutian diaspora. As he mentioned, some will be able to seek financial support to initiate a project or a specific business in the form of equity, while others will do so through loans. Additionally, the Prime Minister highlighted that these platforms also facilitate capital raising for community and humanitarian projects.

In a speech delivered on this occasion, Minister Delegate for Digital Economy and Innovation, Mariam Hamadou Ali, indicated that the ongoing legislative framework aims to ease and stimulate Djibouti’s entrepreneurial ecosystem. She emphasized that it would establish a robust structure for the growth and sustainability of startups by addressing challenges such as regulation, tax incentives, and access to capital.
According to her, this synergy between the Startup Act and crowdfunding would lay down regulatory and incentive foundations so that startups, combined with crowdfunding, offer an accessible and democratic financing source, ultimately providing Djibouti with a powerful synergy. On his part, Dr. Slim Feriani, the CEO of the Djibouti Sovereign Wealth Fund, highlighted that ‘with the FSD’s first project, we mark the beginning of a new chapter in the life of this young sovereign fund, signifying the take-off phase of this institution.’ He stated that the FSD is the promoter and, for the time being, the sole shareholder
of Inclufin. Ultimately, the credit goes to the state of Djibouti for creating a new tool for financing young entrepreneurs, startups, and SMEs that are meant to become the spearhead of the Djiboutian economy in the long run. He also added that this initiative will support the government initiative ‘Djibouti ICI’ (Inclusion-Connectivity-Institutions) and provide young entrepreneurs with access to funding.
In Djibouti, we firmly believe that crowdfunding is a powerful tool to materialize the aspirations defined in the ‘Vision Djibouti 2035’ of the President of the Republic, emphasized the DG of the Djibouti Sovereign Wealth Fund.
‘We remain committed to working together to ensure a better future for the younger generations’ – Abdoulkader Kamil Mohamed, Prime Minister.

Crowdfunding, as a funding method mobilizing a broad audience through online platforms, and currently represents a promising opportunity for Djibouti’s SMEs and
startups. This funding model, which preceded the era of new technologies, has experienced significant growth with the advent of the digital age, particularly following the global banking crisis of 2008/2009.
In the era of Fintech, the digital revolution has fundamentally transformed financing mechanisms, allowing a direct connection between individuals seeking funding and those with financial resources, all through dedicated platforms.
Since 2020, crowdfunding has gained further momentum; it has become one of the favored approaches for individuals to raise funds for causes, projects, or events. For instance, on a global scale during that same year of 2020, the total amount collected via crowdfunding reached an impressive sum of 34 billion dollars – I repeat, 34 billion dollars! Accumulating to several hundred billion dollars over the last decade. As
highlighted by the Director-General of the FSD during his speech, this sector is beginning to develop in Africa, and Djibouti now stands among the few African countries benefiting from crowdfunding.

Crowdfunding is complementary to the banking system, offering our young entrepreneurs the opportunity to directly address a broad public, whether local residents or members of the Djiboutian diaspora. Some will be able to seek financial support to initiate a project or a specific business in the form of equity, while others
will do so through loans. Know that these platforms also facilitate capital raising for community and humanitarian projects.
I am convinced that crowdfunding will have a positive impact on Sustainable Development and Youth. It goes beyond fundraising. It represents a way to bring forth bold ideas, promote entrepreneurship, and shape a promising future for our nation. It helps to preserve and showcase the talents of our youth, who are fully immersed in the digital age, connected and ready to take advantage of technology’s opportunities. This aspect is of paramount importance to encourage entrepreneurship and, by extension, promote the sustainable development of our nation.
Today, I want to emphasize the impact that this IncluFin platform will have on our society and the benefits that our population will derive from it. It is clear that the main advantage of these online link networks between finance enthusiasts and entrepreneurs is access to financing.
We remain committed to working together to ensure a better future for the younger generations. This day marks the beginning of a significant change in our approach to economic development, and our mindsets must adapt to the digitalization of financing circuits.
“Crowdfunding represents a revolution that allows everyone to participate in value creation” – Dr. Slim Feriani, CEo of the Djibouti Sovereign Wealth Fund (FSD)

With the launch of Djibouti’s first Crowdfunding platform (Inclu-Fin, Inclu for Inclusion and Fin for Financial, hence IncluFin for Financial Inclusion ), the first project of the FSD, we are marking the beginning of a new chapter in the life of this young sovereign fund. The FSD is the initiator and, for the moment, the sole shareholder of Inclufin, and since the FSD is 100% owned by the state, the credit ultimately goes to the state of Djibouti for creating a new tool for financing young entrepreneurs, startups, and SMEs that are meant to become the spearhead of the Djiboutian economy.
For the past 18 months, we have been actively working with numerous experts and partners in the field to make this Crowdfunding platform, led by Effectus, our international crowdfunding expert, a reality and functional.
Crowdfunding, or participatory financing, is much more than a simple fundraising method. It embodies a community, solidarity, an opportunity to see dreams become reality, a way to support ideas and projects that are dear to us. It represents a revolution that democratizes investment and its financing, allowing everyone the
opportunity to participate in creating value.

The establishment of Inclufin represents a significant advancement in our quest for innovation, entrepreneurship, and development for Djibouti. Inclufin is the bridge that connects dreams to reality, where innovative ideas find the necessary support to grow and thrive.
We believe in the power of collaboration, in the diversity of ideas, and in the magic that emanates from solidarity and the unity of communities around the projects that drive them. Unity is strength.

“This initiative reflects our commitment to innovation, entrepreneurship, and sustainable economic growth in our country” – Mariam Hamadou Ali, Minister Delegate for Digital Economy and Innovation.

Today marks a historic milestone for Djibouti with the launch of our first participatory financing platform. This initiative reflects our commitment to innovation, entrepreneurship, and sustainable economic growth in our country.
Crowdfunding, or participatory financing, is not limited to just a platform; it is a revolution that allows each of us to actively contribute to entrepreneurial development. It encourages citizen participation, giving everyone the opportunity to support promising projects, whether they come from young innovators or seasoned investors.
Crowdfunding will cover a wide range of needs, from innovative entrepreneurship to citizen projects, without geographical limits.
In this context, the Startup Act plays a crucial role. This legislative framework, currently under development, aims to facilitate and stimulate Djibouti’s entrepreneurial ecosystem. It establishes a solid structure for the growth and sustainability of startups by addressing challenges such as regulation, tax incentives, and access to capital.
The link between the Startup Act and crowdfunding is intrinsic. While the Startup Act lays the regulatory and incentive foundations for startups, crowdfunding complements this by offering an accessible and democratic source of funding.
By combining the Startup Act and crowdfunding, Djibouti is equipped with a powerful synergy. The Startup Act will facilitate the creation and development of nascent companies, while crowdfunding provides the means to realize their visions. Together, they foster an environment where digital economy and innovation are not only encouraged but also financed and supported at every stage.

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Le Premier ministre préside la cérémonie de lancement officiel de la première société de Crowdfunding à Djibouti | LA NATION