The Report: Djibouti 2023
With its strategic location at the crossroads of Africa, Asia and the Middle East, Djibouti’s stability and solid macroeconomic fundamentals make it an emerging market stand-out in 2023. Although the transport and logistics sector forms the backbone of the country’s economy, Djibouti is diversifying significantly to transform itself into a regional centre of trade and investment.
Country Profile
Djibouti, a republic located on the Horn of Africa, is characterised by a young, urbanised and rapidly growing population, which presents opportunities for economic development. Political stability is another key strength, providing a favourable environment for domestic and foreign investment. With its advantageous location between Africa, Asia and the Middle East, Djibouti serves as a crucial centre for international trade and logistics. Its strategic positioning along major shipping routes and well-developed port infrastructure make it an attractive destination for businesses seeking connectivity and access to regional markets. With strategic planning and continued investment in key sectors, Djibouti has the potential to further harness its advantages and drive sustainable economic growth, while boosting the social well-being of its population. This chapter contains interviews with President Ismaïl Omar Guelleh; Workneh Gebeyehu, Executive Secretary, Intergovernmental Authority on Development; and Ngozi Okonjo-Iweala, Director-General, World Trade Organisation.
Explore chapterEconomy
Djibouti is experiencing a rapid and sustained expansion of GDP. Public investment has led to the establishment of new transport links, enhancing connectivity and facilitating trade. Furthermore, the country has long-term development plans in place to diversify its economy beyond traditional sectors such as transport and logistics. This strategic approach aims to create a more balanced and sustainable economic base. Additionally, Djibouti is poised to benefit from the accelerated uptake of ICT, which is expected to drive economic growth. The rise in digital infrastructure and the adoption of ICT solutions can enhance efficiency, promote innovation and create new business opportunities. This chapter contains interviews with Slim Feriani, CEO, Sovereign Wealth Fund of Djibouti; and Ilyas Moussa Dawaleh, Minister of Economy and Finance.
Explore chapterFinancial Services
Djibouti's financial services sector is undergoing notable reforms that aim to support broader economic growth. There is a focus on expanding technological infrastructure to enhance efficiency and accessibility in banking, capital markets and insurance. Updated regulations are being implemented to diversify the market, attract more players and foster healthy competition. Microfinance is being leveraged to boost the penetration of financial services, particularly among underserved segments of the population. Additionally, new laws are targeting the reduction of non-performing loans, aiming to strengthen the financial stability of institutions and promote responsible lending practices. These initiatives collectively contribute to the growth and modernisation of Djibouti's financial services industry, supporting economic development and financial inclusion. This chapter contains interviews with Ahmed Osman Ali, Governor, Central Bank of Djibouti; Mohamed Aden, General Manager, Assurance AMERGA; and Jama Hersi Abdi, General Manager, Salaam Africa Bank.
Explore chapterTransport & Logistics
Transport and logistics play a crucial role in Djibouti's economic development. The country is actively developing routes and infrastructure to enhance connectivity, both domestically and internationally. New port services are being introduced to facilitate industrial development and trade, attract foreign investment and promote growth. Significant investment is being made to upgrade and expand the transportation infrastructure to support increased trade and logistics activities. In addition, Djibouti is investing in livestock facilities to encourage the legal and regulated trade of animals, tapping into its strategic location as a gateway for livestock exports in the region. These efforts collectively contribute to Djibouti's position as a key transport and logistics centre in the region, driving economic opportunities and regional integration. This chapter contains interviews with Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority; and Robleh Mohamed Barreh, President, Djibouti Freight Forwarders Association.
Explore chapterEnergy & Utilities
As Djibouti’s demand for energy grows, the country is undergoing a transition towards renewables given its lack of domestic hydrocarbons reserves, while also aiming to reduce its carbon footprint and promote sustainable development more broadly. Various projects are underway to strengthen electricity links with neighbouring countries such as Ethiopia, fostering regional cooperation. Djibouti is also working to reduce its dependence on imported power by investing in domestic production and diversifying its energy mix. The government has ambitious plans to become the first country in Africa to fulfil 100% of its electricity demand from clean energy sources while also extending the power grid to reach 100% of the population. This chapter contains interviews with Dabar Adaweh Ladieh, Director-General, International Hydrocarbons Company of Djibouti; and Yonis Ali Guedi, Minister of Energy and Natural Resources.
Explore chapterIndustry & Retail
The industrial sector is one of the key targets for the country’s diversification agenda. One potential area for growth is in agri-business, where the demand for palm oil and its derivatives is projected to increase. The development of free zones in Djibouti is unlocking the potential for global trade, attracting foreign investment and facilitating international commerce by harnessing the country’s existing expertise in logistics and port services to boost growth in related sectors. Additionally, the nascent e-commerce segment has promising growth prospects, as more consumers embrace online shopping and digital platforms for retail transactions.
Explore chapterICT
ICT is playing a vital role in Djibouti's development as the country diversifies and its economy becomes increasingly more complex. The country has been investing in cable infrastructure development, improving connectivity and broadband access to make the country the fourth-most-connected in Africa. Privatisation initiatives are being implemented to foster a more inclusive and competitive ICT market, attracting private sector investment and driving innovation. Digitalisation is a key component of Djibouti Vision 2035 objectives, aiming to leverage technology to transform various sectors and enhance efficiency. By harnessing the potential of ICT, Djibouti is paving the way for digital transformation, economic growth and the achievement of its long-term development goals. This chapter contains an interview with Mohamed Assoweh, CEO, Djibouti Telecom.
Explore chapterConstruction & Real Estate
In light of its infrastructure push, construction is among the most dynamic sectors of Djibouti’s economy. Railways and road development have strengthened connectivity with East African neighbours, fostering regional trade and economic integration. The country's strategic port infrastructure leverages its advantageous position along major trade routes, attracting investment and driving economic growth. In the real estate sector, efforts are underway to improve housing availability through financing initiatives, addressing the growing demand for residential properties. Additionally, Djibouti's capital city is witnessing an expansion of hotel offerings, catering to the increasing influx of business travellers and tourists. This chapter contains interviews with Habon Abdillahi, COO, Habone Construction; and Amina Abdi Aden, Minister of City, Urban Planning and Housing.
Explore chapterTourism
Tourism in Djibouti is an essential component of the country's economic diversification push, with the goal of attracting 500,000 visitors by 2035 set to make the sector a key source of economic growth and employment going forward. With the introduction of new airports and routes, there has been a significant increase in international arrivals. Major hotel projects have attracted investment and catered to the needs of visitors, bolstering the hospitality sector. Looking ahead, Djibouti's future tourism development will focus on offering ecotourism experiences, leveraging its unique natural landscapes and biodiversity. This strategic approach aims to promote sustainable tourism practices while providing visitors with the opportunity to explore and appreciate Djibouti's diverse offerings. This chapter contains an interview with Osman Abdi Mohamed, Director-General, National Tourism Agency of Djibouti.
Explore chapterHealth & Education
There have been improvements in numerous indicators in Djibouti’s health care sector, reflecting efforts to enhance services and promote public health initiatives. Medical services are expanding in scope, reaching rural areas and ensuring broader access to quality care. While the Ministry of Health is responsible for the sector at the national level, medical directors of regional hospitals ensure localised health care provision. In terms of education, Djibouti continues to improve nationwide access to learning, particularly primary and secondary schooling. Additionally, there is a growing focus on vocational and tertiary education opportunities, providing students with the skills and knowledge needed for the job market and supporting the country's development goals. This chapter includes interviews with Deka Ahmed Robleh, Director-General, National Social Security Fund; and Nabil Mohamed Ahmed, Minister of Higher Education and Research.
Explore chapterTax
Tax policies in Djibouti provide certain benefits and incentives to specific sectors through general exemptions. For instance, there are no time restrictions on carrying out remittances, facilitating ease of financial transactions. The requirements for registering a business have been streamlined, reducing the capital needed to start a company, thereby encouraging entrepreneurship and business growth. In terms of income tax, Djibouti follows a progressive system that applies to both local residents and foreigners, ensuring a fair and equitable taxation structure. These tax measures contribute to a favourable business environment, promoting economic activity and attracting investment in Djibouti. This chapter includes a viewpoint with Ramiss Houmed, Managing Partner and Owner, HLB Djibouti.
Explore chapterThe Guide
The Guide contains listings of some of the leading hotels and resorts in Djibouti and contacts for important government offices and services. It also contains useful tips and information for first-time or regular and business and leisure visitors alike.
Explore chapterContents
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President Ismaïl Omar Guelleh
Ngozi Okonjo-Iweala, Director-General, World Trade Organisation
Slim Feriani, CEO, Djibouti Sovereign Fund (Fonds Souverain de Djibouti, FSD)
Ilyas Moussa Dawaleh, Minister of Economy and Finance
Ahmed Osman Ali, Governor, Central Bank of Djibouti (Banque Centrale de Djibouti, BCD)
