Djibouti is a unique and strategic partner for the United States because of its location in a conflict-prone region and its commitment to peaceful moderation. The country is making progress on its complex social and economic challenges, including high vulnerability to natural disasters, such as earthquakes, drought, and floods. USAID Djibouti manages a dynamic $60 million portfolio that addresses a high youth unemployment rate, education, civil society, strengthening the health care system, and a diversifying energy sector.

USAID manages Djibouti's prepositioning warehouse, the largest in Africa, which enables timely responses to emergencies in Djibouti, the Horn of Africa, and the wider region. It is one of only five such warehouses in the world. The two USAID-supported warehouses in Djibouti are the main source of food aid for the Greater Horn of Africa, and the UN World Food Program (WFP) stores 30% of its global food reserves in Djibouti.