Economy
From The Report: Djibouti 2023
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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.

Articles from this Chapter

Overview

Expansion plans: Djibouti continues to modernise its economy amid a challenging global macroeconomic environment
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Having successfully leveraged its geographic position economically, Djibouti has recently weathered a combination of regional and global instability. Despite these headwinds, the country’s resilience remains anchored in the comparative advantage of its location. Djibouti has continued to attract investors across multiple sectors, serving as a transit point between African, Middle Eastern and Asian markets. Indeed, as a natural gateway to the trade routes that cross the Red Sea and the Gulf, the…

Interview

Great expectations: Slim Feriani, CEO, Djibouti Sovereign Fund (Fonds Souverain de Djibouti, FSD), on diversifying the economy
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Interview:Slim Feriani How do you assess the role of the FSD in strengthening the diversification of the economy? SLIM FERIANI: Creating new engines of inclusive wealth through economic diversification is key to the National Development Plan 2020-24. The FSD furthers this goal by improving governance and catalysing investment in strategic economic sectors, such as sustainable natural resources and energy, digital infrastructure, financial services, tourism, health care and education. This is…

Analysis

Inclusive connectivity: Long-term development planning seeks to diversify the economy and establish the country as a centre for logistics
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While the Covid-19 pandemic and conflict in Ethiopia have impacted the regional economic environment in the short term, the government is moving ahead with longer-term development ambitions. Indeed, most of the ongoing economic reforms and infrastructure construction under way are part of the country’s economic and diversification development strategy, Djibouti Vision 2035. The government began to implement Djibouti Vision 2035 in 2014, aiming to focus development efforts and financial resources…

Interview

Net gains: Ilyas Moussa Dawaleh, Minister of Economy and Finance, on fostering economic resilience and expanding the revenue base
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Interview:Ilyas Moussa Dawaleh How would you assess the resilience of Djibouti’s economy amid global headwinds? ILYAS MOUSSA DAWALEH: Despite myriad external shocks, from the Covid-19 pandemic to the war in Ukraine and Ethiopia, the national economy has remained resilient, with growth expected to stand at 3.4% in 2022 and inflation stabilising at 6%. The government’s fiscal measures to protect consumer purchasing power, robust domestic consumption, and respective increases in local trade…

Analysis

Digital expansion: E-governance and ICT uptake are expected to accelerate growth
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To extend the benefits of economic growth to a larger proportion of the population, Djibouti is relying on expanding the use of IT across the public and private sectors. In addition to improving the competitiveness of small and medium-sized enterprises, an increase in IT adoption is viewed by the authorities as a way to reduce youth unemployment. Under Djibouti Vision 2035, the country’s longterm economic and diversification development strategy, policymakers have prioritised the ICT sector and…

Analysis

Grey area: A dynamic informal sector can provide an important buffer to external shocks for many emerging markets
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Long viewed as a barrier to market development and fiscal sustainability, a dynamic informal economy is increasingly being recognised as an important source of resilience and a target for financial technology (fintech) services. The informal economy accounts for approximately one-third of economic activity in emerging markets, compared to 15% in more mature markets, underscoring its outsized impact. Also known as the “shadow” or “grey” economy, the informal sector comprises legal activities…