Industry & Retail
From The Report: Djibouti 2018
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Economic activity in the country is dominated by the tertiary sector – representing roughly 80% of GDP – while the primary sector remains underdeveloped due to an unfavourable natural climate and geography. However, while industry accounts for less than one-fifth of GDP, investment in free trade zones and port facilities is expected to lead to more robust growth in the sector in the coming years. Foreign investment, mainly from China, will help expand Djibouti’s redistribution capacity, as will continued partnership with Ethiopia. Over time, these facilities will provide opportunities for increased manufacturing and contribute to economic diversification. As Djibouti’s economy evolves and the number of modern shopping outlets grows, grocers and the distribution channels that supply them have proven to be key drivers of the country’s retail industry. This chapter contains an interview with Youssef Dawaleh, President, Chamber of Commerce of Djibouti.

Articles from this Chapter

Overview

Leveraging strengths: Partnering free trade zones with port facilities to attract investment in a wider range of industries
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Djibouti, a small East African country of about 900,000 people that has few natural resources, relies heavily on international trade for both basic needs and industry inputs. Economic activity in the country is dominated by the tertiary sector – representing roughly 80% of GDP – while the primary sector remains underdeveloped due to an unfavourable natural climate and geography. However, while industry accounts for less than one-fifth of GDP, investment in free trade zones and port facilities…

Interview

Positive evolution: Youssouf Moussa Dawaleh, President, Chamber of Commerce of Djibouti (Chambre de Commerce de Djibouti, CCD), on prospects for local industry and investing in human resources
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What do you consider to be the main challenges faced by industry players in Djibouti? DAWALEH: The problem of industrialisation has always been at the heart of discussions when it comes to the economic development of Djibouti, as well as its dependence on other countries in meeting industry demands. If we consider the distribution of value added by sector, industry represents only a small percentage. Our economy is more oriented towards the tertiary sector because of the country’s strategic…

Analysis

Feeding a nation: Formal, modern grocery chains see expansion on the back of middle class growth
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As Djibouti’s economy evolves and the number of modern shopping outlets grows, grocers and the distribution channels that supply them have proven to be key drivers of the country’s retail industry. The retail foodstuff segment had traditionally been dominated by independently run, small-scale grocery stores called mercatos, but consumer habits have changed in recent times with the expansion of regional supermarket groups such as Coubèche. MARKET STRUCTURE: The segment has seen significant…