Construction & Real Estate
From The Report: Djibouti 2016
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Benefiting from several years of consistent macroeconomic stability and the roll out of more business-friendly regulation, Djibouti has attracted a rising amount of investment – equivalent to as much as 52% of GDP – with the vast majority directed towards capital projects. This in turn is having a noticeable impact on Djibouti’s construction sector. Urban renovation programs in the cities, especially the capital, are improving housing infrastructure, while large-scale transport infrastructure projects aiming to better connect the country and establish its position as an international commerce hub are helping reshape this small nation in the Horn of Africa. New transport, energy, water and urban infrastructure will be key for Djibouti to solidify its economic integration with international markets, but equally important will be its impact on the overall improvement in living conditions. Making the housing construction sector more dynamic will significantly help in this respect, though tackling the country’s housing deficit will remain a critical challenge, both in terms of quality and quantity. The government is working to devote a higher amount of public resources and attention to the development of adequate housing solutions. In addition to helping expand housing options for the 875,000-person country’s middle-class, large-scale efforts are also being directed towards the elimination of informal settlements in major cities, with a view to replacing temporary housing with adequate long-term construction. Policy changes – both in terms of the allocation of budgetary resources, as well as stronger encouragement for private sector participation – are expected to accelerate the construction of new homes across the country over the coming years. This chapter contains an interview with Amina Abdi Aden, Secretary of State for Housing.