Construction & Real Estate
From The Report: Djibouti 2023
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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.

Articles from this Chapter

Overview

Harnessing potential: Ongoing projects to enhance regional connectivity and boost employment indicate growth for the sector
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Djibouti’s economy grew by an average of over 6% per year in the decade leading up to the start of the Covid-19 pandemic. Investment in transport and port infrastructure, enabled by the rollout of business-friendly regulations and external financing, has been a key driver of this growth. These efforts reflect long-term objectives to leverage the country’s geostrategic location and deepwater port to serve as a regional trade and logistics centre. This focus has had a considerable impact on construction…

Interview

Strong foundations: Amina Abdi Aden, Minister of City, Urban Planning and Housing, on leveraging finance mechanisms and private sector support to provide sustainable and affordable housing options
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Interview:Amina Abdi Aden What has been done to facilitate private participation in the affordable housing segment? AMINA ABDI ADEN: It is important that the private sector is encouraged to engage in real estate projects, especially for middle-income households. To that end, legislation was enacted in July 2013 to regulate real estate development, facilitating the emergence of several private developers. However, these developers remain focused on the high-income segment. To address this, the…

Analysis

Ready access: Efforts to bolster the availability of locally produced building materials present opportunities to expand the industry
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Facilitating access to locally produced construction inputs forms part of the government’s long-term development agenda, Djibouti Vision 2035. The blueprint prioritises the industrial production of construction inputs, alongside other building materials, to meet the needs of the local market for construction and public works. Such developments could help reduce the reliance on imports and lower building costs. Local Capacity In the face of electricity costs that often deter large energy consumers…

Interview

Building up: Habon Abdillahi, COO, Habone Construction, on the impact of a growing middle class and the areas best suited for investment
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Interview:Habon Abdillahi What are the construction sector’s key strengths and drivers that underpin growth? HABON ABDILLAHI: The construction sector’s main strengths are the country’s steady GDP growth and political stability. Between 2018 and 2022 this expansion has facilitated a cycle of construction in both the private and public sectors. Djibouti Vision 2035 and President Ismaïl Omar Guelleh’s blueprint for Djibouti provide a reliable roadmap of where the industry is going and…

Analysis

Green by design: Innovative practices are seen as key to lowering emissions
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Amid efforts to reduce the carbon footprint associated with the construction industry, there is increasing recognition of the benefits of sustainable and regenerative architecture as a means of lowering emissions. According to the “2022 Global Status Report for Buildings and Construction” report published by the UN Environment Programme (UNEP), the sector is one of the world’s biggest polluters and accounts for close to 40% of global energy-related greenhouse gas emissions. In light of this,…

Overview

Safe haven: Projects aimed at widening housing provision and boosting investment indicate new growth opportunities
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As a key driver of long-term socio-economic growth in recent years, Djibouti has focused on investing large volumes of capital in infrastructure projects, including real estate. Other priorities within the Djibouti Vision 2035 long-term development agenda include improved living conditions through the construction of affordable accommodation and enhanced access to quality housing, improved sanitation for clean cities and the elimination of informal settlements. This focus has translated into reforms…