Industry & Retail
From The Report: Djibouti 2023
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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.

Articles from this Chapter

Overview

Catalysing production: Financial incentives and the development of free trade zones are helping to expand manufacturing capacity
OBG
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Historically, industrial development has been the backbone of sustained economic growth and development. The transition from subsistence farming to formal manufacturing labour has consistently underpinned gains in jobs, wages, government revenue and infrastructure development in low-, middle- and high-income nations. The Covid-19 pandemic-induced economic fallout underscored the imperative of inclusive and sustainable industrialisation, as enshrined in the 2030 Agenda for Sustainable Development…

Analysis

In the zone: Port and free zone development aims to drive industrialisation and promote intraregional commerce
OBG
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Boosting industrial output is a core goal of Djibouti Vision 2035, the country’s governing development blueprint, with a focus on expanding industries with trade potential in COMESA and beyond. Free zones have a key role to play in these development efforts, helping to attract capital with targeted incentives, and allowing participating firms to benefit from the economies of scale that clustered industrial operations offer. Given Djibouti’s geostrategic location as the entry point for trade with…

Analysis

Online empowerment: Nascent e-commerce segment offers an avenue for job creation and economic inclusion for small-scale entrepreneurs
OBG
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Gains in internet connectivity in Djibouti over the last decade are laying the foundation for more online-based commerce to flourish. Although e-commerce is at an early stage of development in the 1m-strong domestic market, online retail presents a strategic opportunity to create new income sources for communities that have traditionally remained outside the formal economy, notably women and small-scale entrepreneurs. Female Participation Less than one-third of women between the ages of 15 and 64…

Analysis

The right direction: Industries not eligible for the green bond market have a new option to fund their shift towards more sustainable activity
OBG
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As companies look to shift towards more environmentally sustainable operations, those in fossil fuel or heavy-polluting sectors are increasingly turning to transition bonds – a relatively new class of debt instrument used to fund a company’s shift towards reduced environmental impact or lower carbon emissions. They are often issued in large carbon-emitting industries that would not normally qualify for green bonds, such as oil and gas, iron and steel, chemicals, aviation and shipping. In the…