Djibouti is a key strategic partner to the United States in the Horn of Africa. USAID reestablished its office here in 2003 and has since provided development assistance for basic health services, basic education, and democracy and good governance. With the growing importance of the US/Djibouti relationship and given tremendous need, USAID is also planning various new Economic Growth initiatives in partnership with the government of Djibouti (GoDj).  Djibouti faces many challenges, including chronic drought and food insecurity; a lack of skilled workers; high unemployment; high electricity costs; poor health indicators; and a growing influx of climate change refugees and Yemeni refugees.  Combined, these challenges severely strain the already limited resources of the Djiboutian government. Sustained assistance to this small but strategically important country is critical to its prosperity and to stability across the Horn of Africa.