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Analysis

A safe source: New infrastructure projects to boost water supply and access
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Djibouti’s geographic position and arid climate have made water access intrinsically difficult. The challenges are more clearly visible in rural areas, where communities dependent on small agricultural activity and husbandry have trouble securing sufficient water resources. However, several projects are under way to improve water access across the country. One key development will be the…

Analysis

Opportunities ahead: New developments and alliances could bolster insurance uptake
OBG
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Although it remains a relatively small market with only two players, insurance in Djibouti continues to align with economic development. Most of the sector’s business is driven by the automotive line; however, new economic activities are expanding the market’s offerings. International cooperation with Djibouti’s neighbours has improved, as stronger commercial links have made cross-border…

Analysis

Regional drive: Foreign financing and cooperation are reshaping the region’s transport capabilities
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With the aim of growing its influence in geopolitics and trade, China has been channelling financing into new infrastructure projects across Africa. As part of this, the east of the continent and the countries that make up the Horn of Africa have taken up an increasing role in the Asian country’s long-term plans. Sectors such as transport and logistics, energy generation and housing are all…

Analysis

Gas link: New liquefied natural gas (LNG) project fosters regional and international trade relationships
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The economic and commercial relationship between Djibouti and Ethiopia is becoming increasingly interlinked, with the two countries recently signing a deal that will allow for the export of Ethiopia’s gas resources through its neighbour maritime trade routes. Although Djibouti already handles the majority of imports to Ethiopia, the planned LNG project will further strengthen the Djiboutian-Ethiopian…

Analysis

Wind in their sails: The revamping of its port infrastructure is putting Djibouti on the global logistics map
OBG
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In an effort to capitalise on its strategic position at the entrance to the Red Sea, significant efforts to modernise Djibouti’s maritime infrastructure are being undertaken. Providing landlocked Ethiopia, which was ranked as Africa’s fastest-growing economy by the IMF in April 2018, with a connection to one of the busiest shipping lanes for global commerce has put Djibouti in an enviable…

Analysis

Feeding a nation: Formal, modern grocery chains see expansion on the back of middle class growth
OBG
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As Djibouti’s economy evolves and the number of modern shopping outlets grows, grocers and the distribution channels that supply them have proven to be key drivers of the country’s retail industry. The retail foodstuff segment had traditionally been dominated by independently run, small-scale grocery stores called mercatos, but consumer habits have changed in recent times with the expansion…

Analysis

Linking up: A strategic location appeals to foreign governments and international organisations alike
OBG
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With strong ties to France, its former colonial power, as well as good relations with its African neighbours, Djibouti is well placed both politically and geographically to serve as a regional trade leader. After gaining independence, Djibouti’s territorial integrity and external defence were guaranteed under the 1977 Treaty of Friendship and Cooperation with France. This was most recently…

Overview

Useful information for new arrivals to Djibouti
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Etiquette In business meetings across Djibouti it is customary to exchange greetings and shake hands. However, in some cases women prefer not to shake hands; it is therefore best to wait for an indication from the person herself. Relationship building and creating a network is important in the Djiboutian business community, and meetings are often opened by having a casual discussion about…

Overview

Helpful telephone numbers in Djibouti
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FOREIGN MISSIONS Australia +253 21 35 38 44 Austria +253 21 35 38 44 Canada +253 21 35 59 50 China +253 21 35 22 47 Cuba +253 21 34 06 71 +253 21 34 06 42 Denmark +253 21 35 10 65 France +253 21 35 09 63 EU Delegation +253 21 32 44 40 +253 21 35 26 15 Egypt +253 21 35 82 84 Eritrea +253 21 35 49 61 Ethiopia +253 21 35 07 18 Germany +253 21 34 40 24 India +253 21 35 01 42 Japan +253 21 35 49 81 Oman +253…

Overview

Tax liabilities: Impacts of the trend towards lower corporate tax rates on developed and developing economies
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Recent decades have seen a downward convergence in corporate tax regimes as advanced, emerging and developing economies moved to grab a bigger slice of the global investment pie. Headline corporate tax rates have fallen by 20 percentage points since the early 1980s. Alongside lower average rates, special tax incentives aimed at capturing investment have emerged, further reducing the effective…