Industry & Retail
From The Report: Djibouti 2016
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Given Djibouti’s economic reliance on international trade, manufacturing industries have traditionally played a secondary role in the country’s economic development. However, authorities are now looking to drive their expansion as a means to cut unemployment, and foster more sustained and inclusive economic growth. As the gateway to East Africa, Djibouti is well positioned to supply manufactured goods to the surrounding landlocked countries. By encouraging FDI in its free zones, Djibouti has an opportunity to boost manufacturing activities. Meanwhile, there is strong potential for growth in other subsectors, particularly cement and building materials, bolstered by the country’s ongoing infrastructure investments. With fisheries and salt mining pegged to see greater investment due to rising local demand and efforts to strengthen the business climate, there is definite scope for industry to play a larger role in the economy. This chapter contains interviews with Ahmed Osman Guelleh, CEO, GSK Group; and Abdoulkarim Al Gamil, Chairman, Al-Gamil Group.

Articles from this Chapter

Overview

Expand and upgrade: Investing in key segments and removing bottlenecks to growth promise to expand industry’s role in the economy
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Given Djibouti’s economic reliance on international trade and the scarcity of natural resources, manufacturing industries have always played a secondary role in the country’s economic development. However, authorities are now looking to boost their development as a means to cut unemployment and foster more sustained and inclusive economic growth. Sector Size In line with many emerging markets in Africa, Djibouti’s manufacturing sector has seen its contribution to GDP trend downwards in recent…

Interview

Building a local base: OBG talks to Ahmed Osman Guelleh, Chairman, GSK Group
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Interview:Ahmed Osman Guelleh What potential exists for manufacturing development in Djibouti over the next five years? AHMED OSMAN GUELLEH: Strategically located, Djibouti has proven to be a beacon of stability and a gateway to more than 100m inhabitants in one of the fastest growing regions in Africa which is not dependent on oil exports. However, the region remains entirely dependent on imports, presenting an enormous opportunity for the manufacturing of all types of consumer goods. The…

Interview

Encouraging developments: OBG talks to Abdoulkarim Al Gamil, Chairman, Al-Gamil Group
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Interview:Abdoulkarim Al Gamil How can Djiboutian retailers move to expand their regional footprint? ABDOULKARIM AL GAMIL: Until recently, Djiboutian retailers were predominantly focused on the domestic market. However, rising levels of purchasing parity and the emergence of a middle class have led to increased local consumption. The development of key infrastructure has resulted in easier access and lower transit times for goods moving across the border. Retailers are now beginning to realise…

Analysis

Retail rethink: With the entrance of larger, formal players, competition in the foodstuff retail market is increasing
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Djibouti’s foodstuff retail sector has traditionally been characterised by the presence of myriad small-scale, neighbourhood grocery stores, called mercato, which are frequented by the vast majority of Djibouti’s citizens. However, modern trade has started to become more significant over the past decade, with the development of several distribution groups – both international and local – which have slowly changed consumers’ habits. The Market After an average annual growth rate of 5-10%…