Driving Growth Andinnovation: How Cac International Bank Thrives Amid Djibouti's Economic Transformation

Established in 2008, CAC International Bank is Djibouti's second largest bank. Ahmed Al Deib, its chief executive officer, believes the bank's growth mirrors the broader transformation going on in the country, as the small eastern African country builds up its infrastructure to take full advantage of its strategic location along the Red Sea and the Gulf of Aden.

Over the last decade in particular, Al Deib tells us, Djibouti has made some crucial interventions to enhance its infrastructure and by extension, trade, lending a significant fillip to the economy. It is making investments in energy, such as the 60 MW Ghoubet Wind Power Station the Galafi-Nagad high voltage power line and the Grand Bara solar power station, which is set for commissioning this year. It has strengthened its industrial sector through the establishment of free trade zones designed to attract foreign investment, particularly in manufacturing and logistics.

The ports have, naturally, received the most attention, as the country enhances its role as a gateway for cargo, particularly for Ethiopia. Ongoing investments in port infrastructure aim to handle increasing trade volumes, reinforcing the country's position as a leading transshipment and logistics hub. At the same time, transportation infrastructure is also receiving substantial investment, with road and rail projects improving connectivity both within the country and across borders. For investors, this makes it easier to take advantage of the country's natural geographical advantages and utilise it as a logistics hub with easy access to international markets.

These efforts have provided a conducive environment for businesses, including CAC International Bank, which has embraced its role as a development enabler. "We have ignited a revolution here from digital services to customer care, cybersecurity, diversified products and social responsibility," Al Deib says.

One of the 12 banks in a country with a population of just over a million, CAC International Bank has stiff competition to deal with, although Al Deib is quick to describe the competition as "healthy". He says, however, that too high a level of competition can incentivise risky behaviour, but for CAC International Bank caution is key and remaining liquid is king.