Djibouti secures $10 million facility from TLG, International Investment Bank to boost digital economy

TLG Capital, a British-owned alternative asset manager, has joined forces with banking institutions—International Investment Bank (IIB) East Africa and IIB Group Holdings (Bahrain) — to provide $10 million in debt financing to Djibouti’s small and medium-sized enterprises. The financing facility marks a major milestone for the country’s growing digital economy and its efforts to strengthen connectivity across the Horn of Africa.

The transaction was led by Mehdi Zehaichi and Adnan Siddiqui for IIB, while Ayoola Oladipupo and Aum Thacker represented TLG Capital. Legal advisers to the deal included ENS and Hannaford Turner for TLG Capital, and Trowers & Hamlins for IIB East Africa.

The facility will enable the rollout of critical digital infrastructure projects to improve internet quality, expand broadband access, and serve thousands of business customers. SMEs are expected to be the direct beneficiaries, aligning with Djibouti’s national development priorities and its goal of becoming a regional tech and logistics hub.

Over the past decade, Djibouti has emerged as a key digital and logistics gateway linking East Africa to the Middle East and Europe. The country’s strategic location on the Red Sea has made it a landing point for multiple submarine internet cables, positioning it as a vital digital corridor for the region. However, while Djibouti handles over 95% of Ethiopia’s maritime trade, its domestic digital ecosystem has lagged in terms of connectivity and affordability. The new financing facility aims to bridge this gap by accelerating infrastructure development that enhances data access and business productivity.

“Our job is to make African private credit investable at scale. This private credit deal in Djibouti is asset-class building, designed to catalyse capital that crowds in investors and allocators into new markets and products,” said Aum Thacker, Senior Investment Professional at TLG Capital.

“This is the kind of intelligent capital Djibouti deserves: fast to deploy and designed to serve real businesses,” added Sohail Sultan, Chairman of the IIB Group. “Together with TLG, we have shown how to turn complexity into executable finance—pioneering a development model whereby British commercial capital can advance development across Africa while delivering strong returns to investors.”