Economy
From The Report: Djibouti 2016
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Located along a strategic international trade route connecting 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. While growth rates over recent years attest to the fact that the country’s position as a center for international commerce can be leveraged successfully, maintaining this level of economic development will depend on how its infrastructure programme is implemented. The ongoing expansion of transport networks and facilities will need to be coupled with careful management of Djibouti’s fiscal position. This chapter contains interviews with Ilyas Moussa Dawaleh, Minister of Economy and Finance; Mahdi Darrar Obsieh, Director, Djiboutian Investment Promotion Agency; and Youssef Dawaleh, President, Chamber of Commerce of Djibouti; and a dialogue between Hikmat Daoud, Chairman, National Confederation of Djiboutian Employers; and Djama Aouled, Chairman, Federation of Djiboutian Corporations.

Articles from this Chapter

Overview

Diversification drive: Rising investment levels and improved policies are helping move the economy away from the public sector and transport
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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 amounts of foreign investment over the coming years, but it will also depend on support measures…

Interview

A model for success: OBG talks to Ilyas Moussa Dawaleh, Minister of Economy and Finance
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Interview:Ilyas Moussa Dawaleh How can Djibouti implement an economic model that is inclusive and reduces poverty? ILYAS MOUSSADAWALEH: To guarantee sustainable and long-term economic development, we have to focus on the realisation of Djibouti Vision 2035, which emphasises the expansion of the country’s soft and hard infrastructure. Where there were none, we have now built schools, clinics and extensive port, road and soon rail infrastructure. Although when looking back we can already…

Interview

Attracting investment: OBG talks to Mahdi Darrar Obsieh, Director, Djiboutian Investment Promotion Agency
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Interview:Mahdi Darrar Obsieh What measures can be taken to encourage foreign enterprises to set up shop in Djibouti? MAHDI DARRAROBSIEH: The government’s strategy to attract investors has led to a growth in foreign direct investment (FDI) and to a diversification of these investments, which were traditionally oriented towards the port and corresponding logistics infrastructure. In the past five years, mainly through investments in the Free Zone, the National Investment Promotion…

Analysis

Room to trade: New free trade areas set to boost economic growth
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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, the Djibouti Free Zone, opened its doors in 2004, and has been fully occupied since 2011. The zone…

Analysis

Creating connections: New infrastructure and better regulation to improve trade conditions
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With its strategic position on the Gulf of Aden, along a primary Europe-Asia shipping route, and its status as an entry-point to the hundreds of millions of consumers in East Africa, Djibouti’s economic strategy is predicated on leveraging its potential as a trade platform. This stance is supported by ambitious plans to build new ports, airports and railways, and to significantly raise transport capacity for a multitude of commercial products and materials. The economy already depends heavily…

Overview

Building expertise: OBG talks to Hikmat Daoud, Chairman, National Confederation of Djiboutian Employers; and Djama Aouled, Chairman, Federation of Djiboutian Corporations
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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 enterprises. Generally, a foreign entrepreneur willing to set up in Djibouti can do so without…

Analysis

Balancing act: Rapid expansion must be tempered with prudent decision making
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Djibouti’s economic strategy, as outlined under the Djibouti Vision 2035 plan, is in large part dependent on growth led by construction activity and infrastructure spending. While much of the $14bn worth of ongoing or planned projects is being financed directly by overseas investors, a large percentage is also being funded from the government’s budget, or with financing assistance from development institutions. This is having an impact on the state’s fiscal sustainability, with the budget now…

Analysis

Living off land and sea: Plans to develop agriculture and fishing to promote food and employment security
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The goal of diversifying Djibouti’s economy will depend on raising the contribution of several sectors to the country’s GDP. Among the government’s priorities are the expansion of agriculture and fishing activities. The contribution of agriculture to the national GDP is expected to increase from 3.7% in 2012 to 4.1% in 2022 and 5% of GDP by 2035, according to government plans stated in the Djibouti Vision 2035 strategy document. There is quite a lot of scope for expansion. Currently, the sector…

Interview

Meeting of minds: OBG talks to Youssef Dawaleh, President, Chamber of Commerce of Djibouti
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Interview:Youssef Dawaleh How can cooperation between local enterprises and international investors be strengthened? YOUSSEFDAWALEH: It is important to highlight that beyond arbitration, the Chamber of Commerce is willing to encourage the participation of the local private sector in on-going big investment projects in Djibouti, and, more specifically, those related to transport infrastructure. This participation can manifest itself through partnerships or joint ventures between international…