Country Profile
From The Report: Djibouti 2016
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In 2014 Djibouti’s economy achieved a growth rate of nearly 6%, according to estimates from the African Development Bank. While unemployment remains a challenge, this growth figure, coupled with a young and expanding population, points to the strong potential of the country. Ports, logistics and associated services remain the dominant economic activity, accounting for more than 90% of GDP, though Djibouti also has some natural advantages. In terms of metals and minerals, the country is home gold, granite, limestone and marble deposits. Djibouti is also looking to leverage its significant geothermal resources to satisfy domestic energy demand. According to World Bank estimates, the country’s population reached 876,200 in 2014 – the majority of which, more than 500,000 people, live in the capital, Djibouti City. Djibouti is also a young country, with more than half of the population under the age of 25. The two official languages are French and Arabic; however, with the ethnic composition of the country consisting mostly of Somalis (60%) and Afars (35%), these groups’ languages are also widely spoken. Djibouti is a relatively young country in political terms. It achieved independence less than 40 years ago and has had just two presidents in that time. Djibouti’s comparative stability in an otherwise volatile region has allowed the country to develop relatively quickly. This chapter contains interviews with President Ismaïl Omar Guelleh; and Carlos Lopes, Executive Secretary, UN Economic Commission for Africa; and viewpoints from John Kerry, US Secretary of State; and Mahamoud Ali Youssouf, Minister of Foreign Affairs.

Articles from this Chapter

Overview

Natural advantages: The country’s location is key to its prosperity
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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 resources, industry or agricultural potential. Nonetheless, it continues to post impressive results.…

Interview

Big ambitions: OBG talks to President Ismaïl Omar Guelleh
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Interview:President Ismaïl Omar Guelleh Where do infrastructure projects fit into Djibouti’s development plans, and how can these be financed in a sustainable way? ISMAÏL OMARGUELLEH: Our economy has been expanding since 2005 with its growth rate rising from 3% some years ago to 6% today. This growth has been driven primarily by the tertiary and services sector. Under the Vision Djibouti 2035 strategy we instigated the desire to diversify the sources of our growth. The choice to…

Overview

Looking ahead: The young nation is developing infrastructure to reach its goal of becoming a key trading hub
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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 president is elected for a five-year term by absolute majority in a two-round system. As the head…

Viewpoint

Common interests: John Kerry, US Secretary of State, on strengthening cooperation with Djibouti
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In 2014, President Obama and President Guelleh announced the annual US-Djibouti Binational Forum, and we held the initial round of that in 2015 in Washington. We had a very fruitful conversation there laying out a lot of the agenda. We’re following up on that agenda, I must say, speedily and effectively. The US and Djibouti are friends, and we are working together in common interest on any number of things, obviously security, but well beyond security too. This part of the world has an incredibly…

Analysis

A central role: Foreign policy targets developing ties with neighbours and global economic powers
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Djibouti is a small country in an often turbulent neighbourhood. Much of its foreign policy since independence has been based on the dual goals of maintaining sovereignty and promoting development within its borders. However, over the past decade, the country has played an increasingly central role in regional diplomacy, not only for its strategic location – which has allowed it develop close ties with neighbouring Ethiopia and a host of other large global economic powers – but also for its comparative…

Analysis

Mutual benefits: Building on the bilateral relationship with Ethiopia will play a key role in securing future prosperity
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A good neighbour policy often makes for an appealing sound bite but in practice – as countries from Turkey to the US have found – it can prove extremely difficult. However, Djibouti has managed to develop a canny strategy towards its neighbours in order to ward off threats to its stability and ensure prosperity. Bordered by Ethiopia and Eritrea – two countries with a chequered history of conflict with each other – and Somalia, a failed state, this is no small feat for the nation. Djibouti…

Viewpoint

Fostering cooperation: Mahamoud Ali Youssouf, Minister of Foreign Affairs, on Djibouti’s role in international cooperation
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Over the years, Djibouti has demonstrated both the value and the importance of having a foreign policy approach that not only emphasises economic development but also paves the way for close cooperation with external partners in pursuit of this goal. For Djibouti, cooperation with our economic partners has always been a two-way process, and done correctly, it yields benefits for both parties. This can be seen clearly in our relationship with the rest of the region. Djibouti has historically positioned…

Interview

Diverse offering: OBG talks to Carlos Lopes, Executive Secretary, UN Economic Commission for Africa
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Interview:Carlos Lopes What are the obstacles to increasing economic integration in the Horn of Africa? CARLOS LOPES: One obvious obstacle is the question of stabilisation in Somalia. Regional peace and security is a prerequisite for greater economic integration. But in areas like cross-border cooperation on energy, or trade facilitation, enormous progress has been made. The benefit of deepening cross-border cooperation and collaboration among countries like Ethiopia, Djibouti and Somalia…