Boosting industrial output is a core goal of Djibouti Vision 2035, the country’s governing development blueprint, with a focus on expanding industries with trade potential in COMESA and beyond. Free zones have a key role to play in these development efforts, helping to attract capital with targeted incentives, and allowing participating firms to benefit from the economies of scale that clustered…
Gains in internet connectivity in Djibouti over the last decade are laying the foundation for more online-based commerce to flourish. Although e-commerce is at an early stage of development in the 1m-strong domestic market, online retail presents a strategic opportunity to create new income sources for communities that have traditionally remained outside the formal economy, notably women and small-scale…
The energy transition continued apace in 2022 despite Russia’s invasion of Ukraine in February of that year, ongoing disruptions to supply chains and inflationary pressures – all of which translated into high energy prices around the globe. However, sustained high prices may mark an inflexion point in shifting the global energy system away from a dependence on hydrocarbons and towards lower-cost…
Located in the Horn of Africa, Djibouti is one of the hottest and driest countries in the world, with annual rainfall at around 220 mm and an average temperature of 28.5°C. As climate change brings more extreme temperatures and increases the risk of water scarcity, ensuring sustainable access to water is a policy imperative. Given the added importance of clean water in decreasing the spread of diseases…
Desalination is considered an expensive and energy-intensive process. However, mega-projects are seeking to tap renewable resources to limit the cost and environmental concerns associated with this crucial process. In June 2022 ENOWA, the energy, water and hydrogen subsidiary of Saudi Arabia’s NEOM mega-project, signed a memorandum of understanding with French energy company Veolia and Japanese trading…
In recent years Djibouti and Ethiopia have aligned bilateral cooperation efforts to grow their economies. Despite having a significantly smaller land area and lack of sizeable natural resources, Djibouti has used its access to trading routes on the Indian Ocean and the entrance to the Red Sea to become a trans-shipment nexus for its landlocked neighbour. Ethiopia’s hydroelectric dams have been key…
As environmental concerns become increasingly pressing for governments and businesses alike, the shipping industry is taking steps to reduce its carbon footprint. In August 2021 Danish shipping company Maersk, the world’s largest container shipping line, announced that it had invested $1.4bn in eight new vessels to be powered by methanol, rather than oil-based fuels. The ships, expected to be delivered…
As Djibouti continues to expand transport infrastructure to leverage its geographic position, rising energy consumption has required additional investment in energy infrastructure to increase supply. Beyond securing enough electricity to support economic growth and an expanding population, Djibouti has taken on the more challenging endeavour of deriving 100% of its power supply from renewable sources. As…
Multi-modal freight is becoming increasingly popular, seen as an efficient means to enhance trade with landlocked countries across continents. It has been found to increase efficiency and decrease costs when compared to traditional transport. It is optimal for countries such as Djibouti that offer vital trade links from seaports to landlocked countries through rail, road and air links. Situated on…
Amid rising inflation and debt levels in emerging markets, in June 2022 G7 leaders pledged to raise $600bn in private and public funds over five years to finance infrastructure in developing countries and counterbalance the influence of China’s Belt and Road Initiative (BRI). The Partnership for Global Infrastructure and Investment (PGII) seeks to address many of the long-term global challenges related…
