Djibouti is facing a significant debt to China. The Belt and Road Initiative has provided a means for smaller, less developed countries to finance desperately needed infrastructure projects. However, some additional financing does go to other unneeded and unsustainable projects, causing heavy debt burdens. Djibouti is positioned to take on public debt worth around 88 percent of the country’s overall $1.72 billion GDP, with China being own a large portion of this figure.
