Analysis

Increased financing incentives in Djibouti's housing market
OBG
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One of the housing sector reform’s most important changes is the establishment of the Housing Bank of Djibouti (Banque de L’Habitat de Djibouti). The new institution aims to give the state a new position in the financing mechanisms for the country’s housing sector, something that private banks, despite their increased presence in the country, have so far been unable to do. The state will channel…

Analysis

Sourcing local cement in Djibouti a challenge
OBG
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As Djibouti executes its $14bn infrastructure development plan, securing the necessary building materials has become a crucial necessity for construction companies and suppliers. This is most visible in terms of cement, an industry which has become the beneficiary of new investment across the continent, as major producers like Lafarge and Dangote look to raise capacity in high-growth economies. Production…

Analysis

Private sector participation key to funding development of Djibouti tourism
OBG
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Attracting 500,000 visitors annually by 2030 will necessitate infrastructural and capital improvements across the board, alongside a significant increase in current spending on promotional campaigns. As a result, the financing requirements are sizable. However, with the country already devoting a large portion of its budget to upgrades focused on the cargo and bulk transport sector, its ability to…

Analysis

New free trade areas to boost Djibouti's economic growth
OBG
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As part of its strategy to become a major centre of commerce in the region, Djibouti is complementing the development of new transport infrastructure with the establishment of new trade areas. Full Capacity Free trade areas (FTAs) – which look to provide fiscal and bureaucratic incentives for businesses, as well as turnkey infrastructure – are not new for Djibouti. The first FTA to be set up,…

Overview

Djibouti developing infrastructure to become key trading hub
OBG
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In political terms, Djibouti is a young country. It achieved independence less than 40 years ago and has only had two presidents in that time. This comparative stability in what is a volatile region has allowed the country to develop relatively speedily. Political System The political structure in Djibouti is presidential, with legislative power shared between the executive and the parliament. The…

Overview

Djibouti's location key to its prosperity
OBG
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A small but important country, Djibouti benefits from its highly strategic location. With access to the Gulf of Aden and the Indian Ocean beyond, the country is a significant gateway to the Horn of Africa and the wider region of East Africa. Djibouti is reliant on this competitive advantage. Port, logistics and associated services remain the dominant economic activity. The country has limited natural…

Overview

Hikmat Daoud, Chairman, National Confederation of Djiboutian Employers; and Djama Aouled, Chairman, Federation of Djiboutian Corporations: Interview
OBG
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Interview:Hikmat Daoud,Djama Aouled What can be done to strengthen cooperation between foreign investors and local enterprises? HIKMAT DAOUD: It is important to create an environment in which foreign investors and local enterprises share knowledge and work together. As a member of the International Organisation of Employers, our organisation does the match-making between foreign and Djiboutian…

Overview

Rising investment and improved policies diversifying Djibouti's economy
OBG
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Located along a strategic international trade route that connects Africa, the Middle East, Europe and Asia, Djibouti’s economic development has been linked with rising global commerce. In order to fully harness its geographic advantages and maintain its competitiveness, the country is now focusing on infrastructure improvements and a gradual diversification of its economy. This will require considerable…

Overview

Djibouti's financial sector boosted by competition and improving regulations
OBG
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On the back of a rise in both capital investment and transport activity, Djibouti’s banking sector has seen considerable expansion in recent years. The most visible change has been the increase in the number of players in the market, which has led to an uptick in competitiveness and the expansion of products and services targeting local clients. The increasingly robust regulatory role that is being…

Overview

New transport infrastructure positions Djibouti for trade
OBG
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In light of Djibouti’s fortuitous positioning between East Africa and the Middle East, and on a key trade route between Asia and Europe, the country has long played a central role in regional trading. Increasingly, however, it is looking to parlay that lineage into an even greater role, expanding infrastructural capacity and linkages to ensure the small 800,000-person nation is able to act as a prominent…