Djibouti a New Economic Force Anticipating, Shaping and Powering a Sustainable Future in Djibouti

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Special Report Djibouti A new economic force Anticipating, shaping and powering a sustainable future in Djibouti

Energy access rates and reliability in Africa are the lowest in the world and electricity costs are some of the highest. Djibouti has ambitious plans to change its energy mix with the country's ﬁrst renewable energy project. The 59MW wind farm will almost double the country's current installed power generation capacity to reach over 200MW.

Siemens Gamesa is starting Djibouti's energy transition to provide cleaner, more reliable and affordable energy to its people and key industries, while supporting long-term sustainability and economic growth. SPECIAL COUNTRY FOCUS DJIBOUTI Djibouti – punching above its weight

Djibouti is in many ways Indian Ocean and the all- between restive Somalia, an outlier. Thanks to its important Suez Canal. With ambitious Ethiopia and strategic geographic location 30 per cent of global trade gradually emerging Eritrea, it has become a regional passing through routes it and looking across the water commercial and logistics hub oversees, its leadership has at Aden, has also developed and an important military had to learn how to keep one of the most modern and base for the US, France and several balls in the air and efficient ports in Africa. It China. It is also slap bang has acquired a mastery of has now set its sights even at the centre of one of the international diplomacy. higher with the launch of its most militarised areas This tiny country, nestling Vision 2035 and sees itself of the world, controlling along the Bab el-Mandeb becoming a continental, if access to the Red Sea, the strait (Gate of Tears), not global ITC hub.

SUITES HOTEL GARDENS Below: Women from the Afar people doing Raks-al-Sayf, a traditional sword dance

Plot 1415 Adetokunbo Ademola Street, PMB 12724 Victoria Island, Lagos, Nigeria, Tel: +23412772700-5 (ext,6124) +23414606100 -29 Fax +234 1 2704071 [email protected], [email protected] banquet@ekohotels, www.ekohotels.com SPECIAL COUNTRY FOCUS DJIBOUTI Overview

small country in a very arid region, apparently with limited natural resources, Djibouti Placing Djibouti did not appear to be a viable economic prospect when it became independent in 1977. Yet the governmentA has managed to make at the heart of the most of the country’s strategic location to carve out a niche as an important trading centre. It now aims to build on this by attract- global trade ing manufacturing and processing investment around the various port terminals, while developing an internationally- important digital communications hub. Djibouti had little going for it when it became independent Djibouti’s strategic position may be its in 1977, but by expertly exploiting its geographic position and main selling point today but it has always been at the centre of interactions be- putting into place ambitious but well thought-out policies, this tween Africa, Arabia and the wider world. small country has developed into a global trading centre – and These cultural exchanges meant that the Afar and Somali people who lived in the its desire to become the financial and logistical hub for the area were quick to adopt Islam in the 7th region seems well on the way to being realised. Report by century. Djibouti’s location on the Red Neil Ford. Sea also attracted growing French interest, which translated into it becoming Europe. for Ethiopia was cemented in 2017 when a French protectorate in . The first Djibouti Ports Free Zones uthority the new Ethiopia-Djibouti Railway was railway to Addis Ababa was completed in DPFZ acts as port landlord, regulating completed. It replaced the ageing colonial- 1917 as it began its long-running role sup- the activities of private sector operators. era line and reduced freight transport porting Ethiopia. The territory gradually Following the cancellation of DP orlds times between ddis baba and the Port gained greater selfrule until it finally concession to operate Doraleh Container of Djibouti from 50 hours to 12 hours. emerged as an independent nation. Terminal DT, the government now The first electrified crossborder rail- Two factors have driven the develop- seems to be banking on China Merchants way in Africa, the 756km line was built by ment of the port. Firstly, Djibouti’s stra- Group driving port development in the the China Civil Engineering Construction tegic location at one of the world’s most country and fulfilling the same role in Corporation and China Railway Group, as important crossroads, near the entrance the future. Beijing looked to Djibouti to strengthen to the Red Sea and the approaches to the The hinese firm jointly funded the the growing Chinese-Ethiopian eco- Suez Canal in one direction; and close to $590m cost of building the Doraleh nomic relationship. ith average annual the Indian Ocean trade routes to East Asia ultipurpose Port, which was com- economic growth of 9% over the past 15 in the other. pleted in , with the DPFZ, and said years, thiopia offers an ideal maret to In addition, the port has established that it wanted to turn Djibouti into the enable Djibouti’s economic development. itself as the main outlet for Ethiopia. That ‘Shekou of East Africa’, in reference to the vast country of 100m people has been massive Chinese port. DCT has an annual landlocked since the secession of Eri- handling capacity of 1.6m TEU, or twenty- trea in 1993 and so 90% of its trade has foot equivalent units, the standard size of owed through the Port of Djibouti. s the container. ith the latest cargo handling economies of East Africa begin to grow, euipment, it has an efficient unloading Below: An aerial view of Doraleh Container Djibouti is also well placed to handle trade rate of 35 containers an hour. Terminal. The Port of Djibouti is visible 11km away between the region, the Middle East and Djibouti’s position as the main entrepôt in the north (top left) SPECIAL COUNTRY FOCUS DJIBOUTI Overview Partner Insight Premier port in the Horn of Africa Red sea Yemen The government of Djibouti is determined growth; to strengthen the country’s position as the • Investing in human capital: building premier port site in the Horn of Africa. Gulf of Aden a hardworking, healthy and educated Ethiopia is seeking to diversify its range workforce; of port options and has signed deals to Djibouti • egional integration: increasing trade Our success story use Port udan in eastern udan and the and commerce with regional partners. emerging port of Lamu in Kenya. Djibouti In addition, relations with Eritrea have Somaliland It is hoped that attracting tech compa- xim Bank is part one of the leading financial known international banks, allowing us to provide a bouquet thawed over the past two years, raising Addis Ababa nies to the country will generate economic services providers in countries and Tananias fi rst of world class banking services to suit the business needs the possibility that Eritrean ports could growth but can also benefi t the people of international ban. ince welcoming our fi rst customers of our clients. The Bank values the strong partnerships and again serve Ethiopian trade. Yet the Su- the country directly through the provision in Samora Branch, Dar es Salaam, in 1997, Exim Bank fi nancial cooperation with leading lending institutions such Ethiopia has continued to expand its national and regional reach. as IFC, PROPACO, NORFUND and FMO. Some of our international danese and Eritrean ports are nowhere of digital services, digital literacy and ul- Exim Bank has over the years leveraged on the banking partners include Citibank. near as developed as Djibouti’s various timately, employment. The infrastructure Eunderlying resilience to grow our asset base and to successfully port terminals, while Lamu is considerably is already being put in place, with eleven expand our reach Tanzania and overseas subsidiaries in the Awards and Recognitions further from Addis Ababa than Djibouti, subsea cables having connections with Moroni Islands of the Union of Comoros, in the Republic of Our strength makes us even more valued and valuable. Exim so the latter can continue to build on its the country and support provided by the Djibouti and Uganda– an international presence. Bank Djibouti SA has won for 3 consecutive years 2017, 2018, lead if investment is sustained. Somalia orld an. Exim Bank Djibouti SA is a subsidiary of EXIM BANK and 2019 awards bank of the year within Djibouti, named by TANZANIA which has been recognized as Tanzania’s Best Retail the BANKERS of Financial Times in London. Djibouti has one source of income Kenya Regional demand for high-bandwidth Bank by Banker’s Africa East Africa 2017 and has a vintage of Hawa Hamadou Ali shared by few other nations. It has es- international connectivity continues to years of success, growth and pioneering fi nancial solutions Head of Business Forward Thrust tablished itself as the most popular place grow rapidly, with a twentyfold increase in in new markets across the continent. Development of Exim Today, we serve a prominent and diverse set of clients and in the world for foreign countries to set data usage in the Horn of Africa between Our core purpose is to be the bank of choice - helping Bank Djibouti SA investors, including leading multinational corporations, large up military bases. Former colonial power 2009 and 2018, so there is huge scope for customers become fi nancially better off . im ans continued institutional investors and fi nancial sponsors, small and growth and success is founded on several key factors: medium enterprises. We continually strive to enhance our capabilities France has been joined by Italy, China and Djibouti to develop an international role by bolstering our infrastructure, reinforcement in customer service and Japan in setting up military operations in for itself. The government is particularly • A committed team that lives our shared values and works together to centralizing key processes in order to provide the highest caliber of service the country, while the US has about 4,000 een to attract digital fi nancial services provide customers with the best services to our clients. soldiers and contractors on Camp Lemon- investors to the country. • straightforward business model anchored in diversifi cation by business, nier, plus a drone base at Chabelley. geography, risk, and people, as well as a clear focus on our business Bringing Value to People strategy We are an equal opportunities employer and our breadth and diversity The forces based in Djibouti are able to Renewable energy • We embrace the future by establishing ourselves in unbanked markets is re ected in our people. e welcome people from all bacgrounds and undertake a vast range of activities from The country currently has less than where we connect our customers to wider opportunities. recognize that in order to be successful, we need to create an inclusive anti-piracy, peacekeeping and humanitar- of installed power generating capacity and • We’re continuing to develop our range of products and services, to meet environment where everyone can realize their potential and succeed. Our ian roles to anti-terrorism, intelligence much more is needed to back the rapid customer changing need. employees come from a wide range of backgrounds, skills and specializations and surveillance work. Apart from the fees growth plans. The current focus is on ex- and we value the richness that diversity brings. Gender diversity and balance that the foreign governments pay Djibouti ploiting the country’s renewable energy We have over the years worked purposely to develop strong foundations is central to the Bank’s brand image and is an integral part of our growth that support the best possible future of our operations. We have forged and competiveness. to host the installations, the presence of potential and two substantial projects have relationships and partnerships that have given us opportunities to exchange We understand that our people drive our success. That is why we work so many strong military nations provides already been agreed. ideas, enabled communities to utilize our products and cross boundaries. hard to make our organisation a place where every one of our people is Djibouti itself with a degree of security. Above: A Djiboutian girl wearing a traditional ast une, French fi rm ngie signed a Today, Exim Bank is one of the leading banks in Djibouti, respected for its valued for the contribution they make and are supported in achieving their headdress contract to develop a photovoltaic excellent service delivery, robust infrastructure driven by innovation and individual goals. We are committed to building a creative and inclusive Economic diversifi cation solar power plant in the Grand Bara re- operating on advanced banking. culture where the ideas, beliefs, attitudes and skills of all our people are valued. The Bank is committed to fostering an environment that nurtures The orld an estimates that Djiboutis gion, south of Djibouti. It is expected to Pioneer solutions in Banking professional development and growth. DP grew by . in and predicted be the fi rst phase of a much larger Innovation is a promise we give to our customers and clients. The Bank has growth of 7.5% in 2020 and 8% for the DJIBOUTI – KEY FIGURES scheme with estimated investment costs had signifi cant breathrough innovations through the deployment of world A sustainable bank period. These fi gures are liely to Government: of €360m. class technology and customer focused products. We are proud to be part of We believe in playing a positive role in the economy and society by providing be downgraded as a result of the corona- Unitary dominant-party In addition, the Africa Finance Corpo- the project of digitalization of Port community system. individuals and businesses with the fi nancial services they need to meet their ambitions. We ensure our business is sustainable by taking a long- virus crisis but the country’s long-term Presidential epublic ration F announced in February that Global partnerships and alliances term view: valuing our employees; addressing the impact we have on the economic prospects look very sound. The Ruling Party: it would invest m in the hou We have retained excellent banking relationships with a number of well- environment; and investing in the future of local communities. n economic base is already beginning to The Peoples ally for Progress bet wind farm near Lake Assal. The pro- widen with the emergence of construction President: ject is backed by a consortium of Climate materials and food processing sectors. Ismaïl Omar Guelleh Fund Managers, Great Horn Investment Under Vision 2035, the government Prime Minister: Holdings and Dutch development bank, aims to create a more diverse economy Abdoulkader Kamil Mohamed FMO. by developing a digital technology hub, Population: 1.0 million The developers have already secured a promoting light manufacturing export Capital: Djibouti 25-year power purchase agreement to sup- processing zones and improving national GDP: $2bn ply electricity to power distributor Elec- infrastructure, as the port and logistics Economic Growth rate: tricité de Djibouti, starting in 2021. The sector continues to grow. Plans have also . means of provision will involve 15 wind been drawn up to attract investment in GDP per capita (PPP): turbines, each with a generating capacity fi nancial services, tourism and renewable $3,700 of .. energy. Concrete targets have been set, Currency: In a statement, the F said: lectric including creating more than 200,000 jobs Djiboutian franc ity demand is also expected to consider- and tripling per capita income by 2035. Unemployment: 11.1% ably increase due to various large-scale The vision is based on fi ve core pillars: Breakdown of GDP: infrastructure projects including ports, griculture: . free trade zones and railways that the • Peace and national unity: strength Industry: . government of Djibouti has undertaken.” ening unity, peace and solidarity; ervices: . In the longer term, Djibouti’s posi- • ood governance: reinforcing good Trading partners: tion on the Great Rift Valley has given it governance and democracy; eading suppliers: , of geothermal potential, which • diversifi ed economy: promoting France, United Arab Emirates could provide the constant, baseload power competitive and healthy economic eading customers: thiopia, France production that industry craves. n For more details call + 253 21 35 15 14 or visit www.eximbankdj.com Partner Insight Our success story

EXIM BANK is part of one the leading financial services of our international baning partners include itiban. providers operating in countries and Tananias first international ban. ince welcoming our first customers Awards and Recognitions in amora ranch, Dar es alaam, in , im an ur strength maes us even more valued and valuable. has continued to epand its national and regional reach. I Djibouti has won for consecutive years EXIM BANK has over the years leveraged on the un- , , and the an of the ear in Djibouti, derlying resilience to grow our asset base and to suc- an award by the aner magaine of the Financial Times cessfully epand our reach with a presence in Tanania in London. and overseas subsidiaries in the oroni Islands of the nion of omoros, in the epublic of Djibouti and ganda. Forward Thrust im an Djibouti is a subsidiary of I Today, we serve a prominent and diverse set of clients Tanania which has a successful trac record of growth and investors, including leading multinational corpora- and pioneering financial solutions in new marets across tions, large institutional investors and financial sponsors, the continent. Hawa Hamadou Ali small and medium enterprises. e continually strive to ur core purpose is to be the ban of choice helping Head of Business enhance our capabilities by bolstering our infrastructure, customers become financially better oﬀ. EXIM BANK’s Development of Exim reinforcement in customer service and centraliing ey continued growth and success is founded on several Bank Djibouti SA processes in order to provide the highest caliber of service ey factors: to our clients. • committed team that lives our shared values and wors together to provide customers with the best services Bringing Value to People • straightforward business model anchored in diversification by e are an eual opportunities employer and our breadth and diversity business, geography, ris, and people, as well as a clear focus on our is reected in our people. e welcome people from all bacgrounds and business strategy recognise that in order to be successful, we need to create an inclusive • ere continuing to develop our range of products and services, to environment where everyone can realise their potential and succeed. ur meet customers changing needs. employees come from a wide range of bacgrounds, sills and specialis- tions and we value the richness that diversity brings. ender diversity Today, EXIM BANK is one of the leading bans in Djibouti, respected and balance is central to the ans brand image and is an integral part for its ecellent service delivery, robust infrastructure driven by innova- of our growth and competiveness. tion and operating on advanced baning. e understand that our people drive our success. That is why we wor hard to mae our organisation a place where every one of our people Pioneer solutions in Banking is valued for the contribution they mae and are supported in achiev- Innovation is a promise we give to our customers and clients. The an ing their individual goals. e are committed to building a creative and has had significant breathrough innovations through the deployment inclusive culture where the ideas, beliefs, attitudes and sills of all our of world class technology and customer focused products. e are proud people are valued. The an is committed to fostering an environment to be part of the project of digitalisation of Port community system. that nurtures professional development and growth.

Global partnerships and alliances A sustainable bank e have retained ecellent baning relationships with a number of well e believe in playing a positive role in the economy and society by nown international bans, allowing us to provide a bouuet of world providing individuals and businesses with the financial services they need class baning services to suit the business needs of our clients. The an to meet their ambitions. e ensure our business is sustainable by taing values the strong partnerships and financial cooperation with leading a longterm view: valuing our employees addressing the impact we have lending institutions such as IF, PP, FD and F. ome on the environment and investing in the future of local communities. n

For more details call + 253 21 35 15 14 or visit www.eximbankdj.com SPECIAL COUNTRY FOCUS DJIBOUTI Logistics

said li hmed ouled, DIFTZs mareting Communiqué director and head of public relations. These companies come from around D j i b o u t i ‘ 1 0 y e a r s the world, including Ethiopia, Europe, the The Central Bank of Djibouti (CBD) has played a central role in ensuring stability and iddle ast and hina. ith the Djibouti International Hotel and the Djibouti In- predicability for investors and the international business community. As the country ternational Tower already in place, and becomes an important financial hub, the CBD has put a strong emphasis on providing ahead’ of rivals planned connections to Doraleh Multi- strong regulatory supervision to help ensure a dynamic and robust financial sector. purpose Port, more international investors and businesses are expected to commit Blessed with the region’s only deep-water port, at the themselves soon. entrance to the world’s third-busiest shipping lane, Djibouti is Part of a vast project transforming itself into an ultra-modern logistics centre with or is also underway on the Djibouti A bastion of stability the launch of its International Free Trade Zone. Damerjog Industrial Development DDID, which will host heavy industrial tenants and the country’s second oil terminal. The he main task of the Central Bank of the management of offi cial reserves in the ic growth for several years, is epanding role of the DDID is to build on Djibouti’s Djibouti is to ensure the convert- countrys currencies to guarantee a largely strongly. The number of active fi nancial position as a logistics and commercial ibility of the national currency, the positive rate of coverage of its issue. s for operators continues to grow and now there he presence of wandas Presi- gateway to dynamic African markets.” hub by attracting export-orientated busi- Djibouti Franc which was created in the purchase of foreign currency, it is free are 12 commercial banks, a State SME/SMI dent Paul agame, omalias The DIFTZ Project Preparatory roup, nesses, while creating more jobs. e have 1949. Freely convertible and linked and is made against simple deposit of Dji Fund, microfi nance institutions and President ohamed bdul- which is in charge of the initiative, con- investors visiting every day who want to to the Dollar by a fi ed parity, bouti Francs. echange and money transfer offi ces. The lahi Farmajo, thiopias Prime sists of DPFZ and three hinese partners: reserve a space in the one, confirms Tthe Djibouti Franc draws its linear stability, This lac of echange controls and the multiplicity of operators has enriched the Minister Abiy Ahmed and the China Merchants Group – which is already Siman Moussa, Senior Manager in the which has characterized it for 71 years, in strict application of the regulatory and range of fi nancial products and services AU Commission’s Chairperson, the biggest investor in Djibouti – Dalian Project and usiness Development depart- the foundations of its emission (issuance??) prudential provisions of credit institutions off ered by the Djiboutian maret. MoussaT Faki Mahamat, alongside Dji- Port uthority and IZP Technologies. ment at the DDID. system of the currency board type. have made Djibouti a dynamic and attrac- To best support this profusion of the fi boutis President Ismal mar at the inau- The project forms part of Beijing’s In addition to its transport infrastruc- Its operating principle is simple: each tive fi nancial and secure place where the nancial sector, the monetary authorities guration of the first phase of the Djibouti much trumpeted ‘Belt and Road’ strat- ture, Djibouti hopes that foreign firms will Djibouti Franc issued must be fully cov- operators of the subregion maintain their are constantly updating the baning and International Free Trade Zone DIFTZ in egy to develop transport infrastructure be enticed to invest in the free zone by the ered by a deposit in dollars with one main operations. fi nancial legislation, in order to adapt it July 2018 attests to the importance re- and industrial zones around Asia, Africa country’s open investment regulations. of the correspondents in ew or. Thus, The fi nancial sector, largely benefi ting to the epectations of theindustry and to gional leaders place on the scheme. and beyond, to enable much greater trade The free trade one regime is particularly the entral an of Djibouti is in charge of from the strength of the countrys econom international best practices. n onnected to Djiboutis main ports, between China and the rest of the world. attractive, says ouled. The sole restric- said Djiboutis Prime inister bdoulad- Until now, Djibouti has mainly acted tion is that 30% of a company’s employees er Kamil Mohamed, during the ceremony, as the entry and export point for China’s must be locals within five years, rising to it is intended to diversify the Djiboutian burgeoning manufacturing and process- 70% thereafter. This is how we will ensure economy, create jobs and attract investing investment in Ethiopia. Now Djibouti the transfer of skills which will help to ment by providing foreign companies with wants to take on the same role itself and enhance the value of local human capital. the high-quality logistical support es- its location on the Red Sea means shorter ver time, the DIFTZ must play its part in sential to their operations.” transport times for raw materials and the the creation of 300,000 jobs.” Located 23km from the city centre and finished goods. The first phase, which ith a population of just under m, that covering an area of 4,800 hectares, the involves $370m investment over a 240- underlines the venture’s ambition. Other .bn, year DIFTZ project is projected hectare plot, consists of four industrial port projects, such as Lamu in Kenya, will to be the largest free trade zone in Africa. clusters focused on trade and logistics, attempt to replicate the Djibouti model Aboubaker Omar Hadi, the chairman of eport processing, and business and fi- but DIFTZs ouled is confident that Dji- Djibouti Ports and Free Zones uthority nancial support services, as well as manu- bouti is ten years ahead of its potential DPFZ, said at the event: e are build- facturing and duty-free retail businesses. competitors. n ing a global, modern and sustainable trade nly one year after its launch, eighty hub for the coming decades. Djibouti’s one companies have already moved in, in- Below: The International Free Trade Zone, 23km strategic location makes it an important cluding trading and logistics businesses,” from Djibouti City, is close to the main port (c)

Banque Centrale de Djibouti | B.P. 2118, Djibouti Tél : (253) 21 35 27 51 | Fax: (253) 21 35 12 09 | Site Web: www.banque-centrale.dj | e-mail: [email protected] Communiqué

The Central Bank of Djibouti (CBD) has played a central role in ensuring stability and predicability for investors and the international business community. As the country becomes an important financial hub, the CBD has put a strong emphasis on providing strong regulatory supervision to help ensure a dynamic and robust financial sector. A bastion of stability

he main task of the Central Bank of the management of offi cial reserves in the ic growth for several years, is epanding Djibouti is to ensure the convert- countrys currencies to guarantee a largely strongly. The number of active fi nancial ibility of the national currency, the positive rate of coverage of its issue. s for operators continues to grow and now there Djibouti Franc which was created in the purchase of foreign currency, it is free are 12 commercial banks, a State SME/SMI 1949. Freely convertible and linked and is made against simple deposit of Dji Fund, microfi nance institutions and to the Dollar by a fi ed parity, bouti Francs. echange and money transfer offi ces. The Tthe Djibouti Franc draws its linear stability, This lac of echange controls and the multiplicity of operators has enriched the which has characterized it for 71 years, in strict application of the regulatory and range of fi nancial products and services the foundations of its emission (issuance??) prudential provisions of credit institutions off ered by the Djiboutian maret. system of the currency board type. have made Djibouti a dynamic and attrac- To best support this profusion of the fi Its operating principle is simple: each tive fi nancial and secure place where the nancial sector, the monetary authorities Djibouti Franc issued must be fully cov- operators of the subregion maintain their are constantly updating the baning and ered by a deposit in dollars with one main operations. fi nancial legislation, in order to adapt it of the correspondents in ew or. Thus, The fi nancial sector, largely benefi ting to the epectations of theindustry and to the entral an of Djibouti is in charge of from the strength of the countrys econom international best practices. n

Banque Centrale de Djibouti | B.P. 2118, Djibouti Tél : (253) 21 35 27 51 | Fax: (253) 21 35 12 09 | Site Web: www.banque-centrale.dj | e-mail: [email protected] SPECIAL COUNTRY FOCUS DJIBOUTI Ports complex

Aboubaker Omar Hadi - Chairman, Djibouti Ports and Free Zone Authority Human capital is our biggest advantage The ports complex of Djibouti is not only a critical throughfare for international shipping and trade, it is also very much part and parcel of the country’s economic development strategy.

Left: Aboubaker Omar Hadi

Right: A container truck passes through the main gate of Djibouti’s free trade zone How did Djibouti become such a major lo- the ships, crew change and other services. cargo owners. But as we close the port in gistical hub in the region? We are now geared to become an interna- the city and move its activities to the new Let me contextualise the answer to this tional maritime centre. infrastructure, this will create a whole question within history. The location of For example, we are also developing a new opportunity to redevelop the business Djibouti is of primary importance. This ship repair yard that will be operational centre of Djibouti, the downtown. strategic location cannot be underesti- in 2022. Given this increase in activity, we We are not re-inventing the wheel. It mated. It has always been throughout are also developing an energy production has been done in many parts in the world. history an important gateway and inter- unit; even though that’s not our core busi- Yokohama’s old port was transformed that national crossroad for trade. ness, it’s core to be able to help us conduct way. London docks on the Thames River. This route grew even more in im- our business. Cape Town waterfront is another example. portance with the growth of shipping Lastly, the Free Zones, which is a big and the construction of the Suez Canal part of our business. We’ve currently got Are you worried Ethiopia is currently your in 1869. This gave Djibouti a key role to 40 hectares but are developing the big- largest customer and they appear to be look- play, effectively making the country an gest on the continent and it will be 4,820 ing at alternative access to the sea? important hub for the movement of goods hectares. We have developed the pilot Diversification is key. And that’s why I and exchange between Asia, Europe, the stage of that one. A $290m investment mentioned the transhipment activities as Middle East and Africa. covering 240 hectares of a 600 hectare well as bunkering. In the same way that it At the beginning, Djibouti was a bun- development. is legitimate for Ethiopia as a landlocked kering platform, and used to refuel the In the last four years, we have built country to look at other corridors and ships travelling from Europe, especially three new ports and we are planning to seaports. So far, as I mentioned earlier, Marseille, to the Indochina peninsula, build an additional two. A new container half of our throughput is transhipment and there was a depot of coal, because at terminal and a new multi-purpose port. traffic. that time ships used to burn coal as fuel The old port will be transformed into a But what we believe is that Ethiopia’s (streamships). The ships also replenished business district. population is 100m yet they only import on water and food to enable them to con- By doing so, we will also ensure we and export six times the value of what we tinue their journey. free the city of traffic related to the port do in Djibouti, with a population of 1m. It is only later on that Djibouti was activities, reducing congestion and pol- Trade from Djibouti – i.e. imports/ex- converted into a cargo hub. With the ports - accounts for 17% of the through- building of the railway line between Dji- put whilst that from Ethiopia accounts for bouti and Addis Ababa, between 1879 to 83%. So there is much room for growth 1917 – the first railway on the African on the Ethiopian side if we extrapolate continent – that offered new perspectives numbers using population metrics. And for Djibouti to become a transit country using these metrics, we are not over- for Ethiopia and the hinterland. dependent on Ethiopia. But diversification In the 1970s, we started adding to these and not an over-reliance on the Ethiopian activities relating to imports and exports, market is a legitimate concern and one what we’d refer to as transhipment cargo, we have addressed. essentially transferring consignments on large vessels to smaller ships for them to What is your comparative advantage against distribute across the region. Tranship- Mombasa and Dar es Salaam? ment activities represent today almost Our main advantage is our infrastructure. 50% of our throughput. The depth of the water is very important In the last three or four years, we have lution, and meaning we can develop that for the ports to accommodate larger ves- developed a further transhipment activ- site for other activities. sels. We are the fourth most connected ity between much larger vessels. That port in Africa, after Suez, Durban and means the exchange and coordination of What role do you see yourselves playing in Tanger Med. That is in terms of shipping the movement of a much larger quantity Vision 2035? lines using our port. of containers – using Djibouti as a logis- We see ourselves as playing a central role, Africa is a big continent so we are tics hub, not only between Africa and the not just in the country being a logistics happy already being the biggest in the world but East and West, and North and hub, but also investing across different ar- region. We are not in competition with South, all being coordinated out of Dji- eas to enable the vision to become reality. Tangier or with Durban, looking to take bouti. This is transhipment but on a much I mentioned energy: we are today de- business from them. And we actually do larger and global scale. Djibouti Shipping veloping wind power, renewable energy. have transhipment activities with ships for example has acquired a common user We are involved in many discussions going from Djibouti to Durban. We are feeder vessel which will soon be ready to around inland transportation, working in a similar strategic location to Tanger serve ports across the region. with different parties to ensure rapid, Med - them in the strait of Gibraltar and As we grow, we are also now reviving clean and cost-effective movement of us in Bab el Mandeb - but really we are our original business, which is that of goods, and to connect Djibouti with the - the ports that is - interdependent and bunkering. We are moving from what they hinterland. complimentary. call solid bunkering to what is now liquid Our main focus will remain in the de- I should add that our big advantage combustible. And we are planning to move velopment of the maritime profession and today is our human capital. We’ve de- to LNG bunkering. We have managed, everything that comes with it, but we are veloped the skills and the experience, since 2017, to build very good volumes very much involved in job creation, eco- from the top down and throughout our and we are expecting this activity to be nomic diversification and the development business, this is a massive competitive an important part of our work. So today of industries as a whole. advantage we have built over the years. we are not only charging for loading and But we also have to keep in mind, first The infrastructure can be built in a few moving cargo but also supplying fuel to and foremost, the needs of our two cus- years but the experience and skills take the ships, supplying ships’ summary to tomers in our ports – shipowners and many years to be developed. n May- otte

Partner Insight

The Doraleh Container Terminal Management Company (SGTD) is the most modern 90.0 74.6 90.072.2 54.074.6 76.972.2 70.254.0 76.9 70.2 250,000 250,000 75.4 75.7 63.175.4 76.575.7 76.263.1 76.5 76.2 and advanced container terminal in East Africa, a leader in the regional trade and supply 80.0 80.0 chain. Launched in 2009, it is one of the largest port infrastructure projects undertaken by the Djibouti Ports and Free Zones Authority (DPFZA). 200,000 200,000 70.0 70.0 60.0 60.0 150,000 150,000 50.0 50.0

40.0 40.0 60.8 58.5 65.6 75.0 55.0 50.5 47.5 43.1 42.0 61.9 100,000 100,000 Championing Trade 30.0 30.0

20.0 20.0 50,000 50,000 QUARTERLY BERTH THROUGHPUT MOVEMENT10.0 10.0 in East Africa TRAFFIC 0 0 PER HOUR (BMPH) JAN FEB MARAPR MAYJANJUNFEB JUL MARAPRAUG SEPMAYOCTJUN JUL AUG SEP OCT Q1 2018 - Q4 2018 Q1Q1 2019 2018 - - Q4 Q4 2019 2018 Q1 2019 - Q4 2019 2018 BMPH 20192018 BMPH BMPH 2019 BMPH

SGTD IN FIGURES A regional hub for the vast transhipment The most modern and advanced container GMPH 30/h activities of the Red Sea and the Indian Ocean terminal in East Africa BMPH 70-80/h Handling capacity 1.6 million TEU Quay length 1050 m Depth 18/20 m 8 super post panama gantry cranes 38 RTG 2 RMG 10 RS 3 ECH 65 ITV

ocated in the Republic of Djibouti exceptional gateway to the markets of carriers, including Maersk Line, MSC, at the entrance to the Red Sea, the East Africa, bringing together more than APL, Cosco Line, CMA-CGM, Evergreen Terminal’s exceptional geograph- 250 million inhabitants. The train sta- and PIL. ical position at the crossroads of tion, operational since November 2019, SGTD, through its team of dedicated three continents (Africa, Asia and has a capacity of 5 to 6 trains per day Djiboutian professionals with years of Europe) allows it to position itself and considerably reduce the transit time experience in the maritime trade, is Lat the heart of global container traﬃ c. between the two countries. committed to achieving exceptional Through its access to more than 43 ports It is also a regional hub for the vast performance and oﬀ ers its customers and cities in the world (Africa, Middle transhipment activities of the Red Sea operational excellence, access to ad- East, Europe, Asia, North America), the and the Indian Ocean. The Terminal is vanced infrastructure technologies and container port of Doraleh enables an the port-of-choice of the world’s best a tailored customer service. May- otte

Partner Insight

40.0 40.0 60.8 58.5 65.6 75.0 55.0 50.5 47.5 43.1 42.0 61.9 100,000 100,000 Championing Trade 30.0 30.0

ASSETS UPCOMING PROJECTS World class infrastructure and services IN ORDER TO MEET THE DEMANDS OF ITS VALUABLE Access to the most dynamic hinterlands CUSTOMERS, SGTD IS CARRYING OUT SEVERAL Connected to Ethiopia by air and rail PROJECTS: (electric train at 120 km / h). Order of 3 additional gantry cranes Signifi cant reduction in transit time between Extension of the container park Djibouti and Ethiopia thanks to the train station Connection to South Sudan by road Dock extension (on the pipeline) Preparation of a storage park outside the Terminal ocated in the Republic of Djibouti exceptional gateway to the markets of carriers, including Maersk Line, MSC, at the entrance to the Red Sea, the East Africa, bringing together more than APL, Cosco Line, CMA-CGM, Evergreen Terminal’s exceptional geograph- 250 million inhabitants. The train sta- and PIL. ical position at the crossroads of tion, operational since November 2019, SGTD, through its team of dedicated three continents (Africa, Asia and has a capacity of 5 to 6 trains per day Djiboutian professionals with years of Europe) allows it to position itself and considerably reduce the transit time experience in the maritime trade, is Lat the heart of global container traffi c. between the two countries. committed to achieving exceptional Through its access to more than 43 ports It is also a regional hub for the vast performance and off ers its customers and cities in the world (Africa, Middle transhipment activities of the Red Sea operational excellence, access to ad- East, Europe, Asia, North America), the and the Indian Ocean. The Terminal is vanced infrastructure technologies and container port of Doraleh enables an the port-of-choice of the world’s best a tailored customer service. SPECIAL COUNTRY FOCUS DJIBOUTI Finance

Ahmed Osman, Governor of the Central Bank of Djibouti under over a long period. The prohibition on the monetary financing of any public deficit dictated by the system imposes a certain budgetary discipline on the government. Maintaining a However, preserving the system over the long-term requires rigorous management of reserve assets and effective banking supervision. financial gold o, the many advantages offered by Djibouti have long contributed to the solid reputation of its financial institutions, to whom the operators in the sub-region standard have entrusted their transactions, thus prefiguring the status of subregional financial platform, which we plan to e- The Central Bank of Djibouti is the country’s monetary pand on a more regional and continental authority responsible for managing the country’s currency, scale. the Djiboutian franc, as well as the financial landscape. What makes Djibouti increasingly attractive Ahmed Osman (below) was appointed to his position in 2013 to investors? This well-regulated environment attracts and oversees one of the most solid financial regimes in Africa investors and in particular, the economic Interview by Dounia Ben Mohamed. players within the sub-region who can depend on our port and financial infrastructure to conduct their business in the region. The reforms we undertook in the 2000s made it possible to open up the banking What shape is the financial sector in? sector in Djibouti to promoters from many The financial sector in Djibouti is un- backgrounds, including from within the dergoing an unprecedented expansion region. Since then, banking groups with following the major reforms we initiated diverse origins frica, sia, urope, etc. in the early 2000s to transform and mod- have set up shop on our soil. ernise our financial marets. But for us, these banks have no na- Starting with only two conventional tionality, they are banks under Djibouti bans and five financial auiliaries in law. , the sector currently has financial institutions, including all legal forms and What is your view about the national debt? types of activity, for a population of less Some countries take on debt because they than one million people. are facing budgetary difficulties and need The result is that access to banking to borrow to consume or to finance the services, around 5% in early 2000 and shortfall between income and expendi- 7% in 2006, is now in excess of 25%. And ture. This is not the case for Djibouti, interest rates continue to fall thanks to which issues debt to be able to invest in the competition. building the country, infrastructure (new Today, there is a comprehensive range ports, roads, railways, etc.. of financial products and services avail- These are thus investments in the able and we like to think they can satisfy In addition, Djibouti has a unique mon- country’s development, to stimulate the almost any form of demand in the local etary system that benefits from the e- economy and create added value, while market and the sub-region beyond. ceptional stability and longevity that form generating enough return on invest- The ambition we cherish by imple- the foundation of our financial system. ment to cover the depreciation. menting these reforms is to make our city This monetary system, which was set Concerning indebtedness, the state into a regional financial hub and why not up in 1949, works on the Currency Board must behave like a business. It must en- continental or even international in the principle, with a national currency, the sure that the return on investment of longer term? In terms of this objective, Djibouti franc, pegged to the US dollar projects is economically and socially ben- our country has a certain number of com- through a fied echange rate. eficial. To this end, we supply the state petitive advantages to help it get there. To maintain the rate, the totality of the with logistical help and advice in putting mong others, we have: political sta- paper money issued by the Central Bank together project financing. bility, our geostrategic position, a high has a proportionate coverage in foreign The reforms undertaken by the Central performance macroeconomic environ- echange. ith foreign echange cover Bank have contributed to the current ex- ment, a particularly friendly overall busi- well in excess of 100%, the free and full pansion of the banking sector. ness climate, the most efficient com- convertibility of Djibouti’s national cur- e believe that with the development munications infrastructure in Africa, a rency is always guaranteed. of mobile banking, the rate of access to liberal economic system that guarantees The credibility and stability of this banking services will very quickly reach the total freedom of movement of capital monetary system is also excellent for the a significant level in view of the con- with no exchange controls, a supportive domestic economy. It consolidates both figuration of Djibouti, where a relatively ta regime with eclusions for financial external stability and controls domestic small population is concentrated in an products, productive investments, etc. ination, which remains structurally low urban area. What is the situation in Djibouti in terms of and the development of business plans, Above: A vendor unwraps bread for sale in financing SMEs? etc., to make it possible for them to ac- Djibouti’s Balbala suburb. To help Very Small Businesses, the government has invested in It is worth noting that SMEs in Djibouti cess funds from the financial institutions. promoting the development of microfinance are mostly of a commercial nature, with a The government has injected a lot of small proportion of processing activities investment (lines of credit, subsidies for emergence of new products such as Islam- and so, it’s true, [they] have often found capital and operating epenses to pro- ic finance. This is also part of our plan: we themselves short of financing in the past. mote the development of microfinance in have introduced the legislation necessary At the same time, the banking sector response to the financing needs of ery for the development of Islamic finance. in Djibouti is very liquid and has enough Small Businesses in the informal sector And the investors have responded with resources to provide the financing the and activities that generate income for the the result that the sector has achieved a SMEs need. In addition, there is a public most vulnerable layers of the population 20% market share in less than 10 years. body known as the Economic Development with no access to banking services.. e are also starting to attract major Fund which is there to finance s. banks, such as the Bank of China, which The government, working with the To conclude, how do you see the financial sees the benefits of setting up in Djibouti, business community, has focused on future for Djibouti? where it will be able to finance projects strengthening SMEs in order to gradually Djibouti is already a solid financial plat- for the region. move them out of the informal sector. The form. e are seeing nonresidents start- In conclusion, in this area as in others, Djibouti Chamber of Commerce has created ing to take up a large proportion of the we are ahead of the game and ready to a department (the ‘approved manage- monetary aggregates. And we are also face the competition. I remain confident ment centre to support and euip s succeeding in keeping the old banks even that we will achieve our goal of being a in terms of administration, accounting as we attract new ones, along with the regional logistics and financial hub. n

AfCFTA

Partner Insight

Siemens Gamesa Renewable Energy, with its vast experience in Africa, has day for a stable evolution and growth in serve the important evolution African In which African countries have you carried recently signed a 59MW wind farm deal with the government of Djibouti. the sector, remains the optimisation of marets are taing not only from a uan- out projects in the last few years and which the investment framewor. titative and ualitative perspective but ones are still to come? It means we need better conditions and also strategically, in order to assess the ith an installed capacity of ,, infrastructures in place, such as access to issue and better respond to it. Egypt represents not only the largest electricity networs, a sieable pipeline For example, despite high resource po- maret, but also the one that is evolving of banable projects and clear procure- tential in Djibouti and opportunities for most rapidly in terms of opportunities ment processes so that the private sector crossborder eport, there are still , in Africa for our company. We recently Wind power to the fore can follow. households in the country without access completed the first privately owned Thus, although the demand for renew- to power. ith a capacity of , the . as hareb wind farm and able energy resources exists as well as a new wind farm we will complete next year launched the est ar Project clear appetite for investment, the African will almost double the current installed with eela Power. maret share at the global level remains power generation capacity in the country, While we have two projects amount- relatively modest. all of which currently comes from fossil ing to under construction in owever, it is more important to ob- fuel sources. South Africa, we have been following the Roberto Sabalza, CEO Onshore South Europe/Africa, Siemens Gamesa Renewable Energy maret very closely since the announce- ment of the IP programme, which foresees . of wind power capacity What are the major factors of the African wind renewable energy? installed between and . energy market? First, it is obvious that to be able to pro- In Morocco, we are constructing the Many countries, from North to South, duce renewable energy, countries need idelt wind farm, the first pro- from East to West, have put in place de- either abundant sun or wind, if not both. ject of five planned in the integrated velopment programmes for access to ucily this is the case in many frican programme. In auritania, our renewable energy solutions. There is a regions. Below: A service technician on one of team completed installing turbines strong will and ambition to give the sector Then it will all depend on the effort the Ras Ghareb wind farm turbines “With a capacity of MW, for our oulenouar project. in Egypt. Siemens Gamesa aims to a significant share beyond in the states are putting in towards enabling revolutionise clean energy production the new wind farm we will Finally, we are very proud to have energy mix of their country within the the implementation of renewable energy in Djibouti through the wind farm entered a new maret with the recent net to years. programmes in their respective nations. project set for completion next year complete next year will signing of a project in Djibou- Energy partnerships in Africa are Many countries now have ambitious ti. The new installation, as part of an increasingly being given to the private renewable energy plans in place such as almost double the current expanding national renewable energy sector, which can only boost economic gypt, which aims to source of the installed power generation development programme, will enable growth. In fact, more than years ago, total generated electricity from renew- clean energy supply, decrease the cost of we were the first manufacturer to provide able energy by . nother eample is capacity in Djibouti, all of electricity and allow the , popu- wind energy on the continent. oroccos ambition to have renew- which currently comes from lation of Djibouti and its ey industries Today, with an installed capacity of able use by . hile outh frica plans to strengthen its electrical independ- more than ., in countries such as to install over of wind power by fossil fuel sources.” ence and economic development. South Africa, Egypt, Kenya, Mauritania, “Wind energy has the potential to play an . Mauritius, Morocco, Tunisia, and Algeria, important role in powering Africa’s growth, In general, it is important to find the including job creation,” says Roberto Sabalza we have more than maret share on right committed partners. For example, the continent. the new wind farm we will install e are maing significant efforts with able energies on the continent. in Djibouti represents iemens amesas experienced teams to help the continent We can succeed only through collabo- first in frica with the leadership and accelerate its economic growth in a sus- ration with all public and private actors participation of an African investor. tainable manner. The aim is to provide capable of building marets. That is why A consortium of four entities are lead- access to clean electricity to a growing iemens amesa sees to share its e- ing its development: frica Finance or- number of Africans but also, where pos- pertise and judgement gained from more poration, the Dutch development ban sible, to achieve optimal industrial inte- than years of operating globally in F, limate Investor ne Dutch invest- gration. countries, and specifically on the con- ment funds in green energy in Africa, Asia tinent as an active member in different and Latin America) and local company Why and how do you aim to further develop national and international platforms. For reat orn Investment oldings . the use of renewable energy across the con- eample, in chairing a tas force within The project is covered by I, the tinent? the lobal ind nergy ouncil or being orld ans ultilateral Investment Wind energy has the potential to play active members of the RES4Africa Foun- uarantee gency. The electricity gen- an important role in powering Africa’s dation and board members of local wind erated will be sold by the consortium to growth, including job creation and ex- associations lie in outh frica. Electricité de Djibouti, the national power panding its industrial sector. e all need to understand the different generation company, for a period of We believe that it is crucial for com- challenges we are facing today. Beyond years. panies lie ours to position themselves as the integrated value chain that we offer As mentioned, sun and wind are abun- major players enabling the energy transi- to our customers, we also provide energy- dant renewable resources on the conti- tion in Africa. efficient storage solutions to ensure a fully nent. As a result, the opportunities in the We need to encourage more public- sustainable energy mix within the supply renewable energy sector are significant. private partnerships in order to propose and demand ecosystem at a national level. owever, when considering particularities and strengthen the necessary conditions of Africa in terms of climate, geography for the development and access to renew- Are African countries equipped to produce and population growth, the challenge to- AfCFTA

Partner Insight

words of its Director eneral, the base of operations” for undersea cables designed to connect the country to Europe. He expects the company’s turnover to rise from $120m in 2018 to $40om in 2025. As part of the company’s strategy, it invested in the ustralia est press cable system in 2017. Following its memorandum of understanding with GoTo Networks, the infrastructure owner, the system has been developed and now connects Perth in ustralia to the city of Djibouti, increasing the country’s broadband capacity.

The Djibouti Data Centre The country’s surplus connectivity allows it to pursue a number of related activities, including data hosting. In 2013, Djibouti became host to the first, and still the only data centre in the Horn of Africa region. The Djibouti Data Centre, DDC for short, is just a stone’s throw away from Djibouti Telecoms international fibre optic cable landing station. It is ast fricas first tier 3 neutral data centre with direct access to n January, the Djibouti Africa Region- Above: Telkom Kenya landing the Djibouti Africa all of the main international and regional al press D undersea cable, Regional Express 1 (DARE1) undersea cable in cable systems linking the European, Mid- which links the countries on Africa’s Mombasa. Dare1 will come into service in June dle Eastern, Asian and African markets. east coast, made landfall at Siesta Beach The centre is equipped to client speci- in Djibouti. Maritime operations are tive costs for interconnections and in- fications, and already hosts data from the underway, and are expected to be com- ternet traffic between Djibouti, omalia US Army, MTN, China Mobile and Facebook I pleted in March 2020, with DARE1 coming and Kenya, as well as opportunities for among others. into service in June. skill development and training. This cable Meanwhile, a second centre is planned This 5,400km cable will link Djibouti, system is a crucial tool for East African for Obock, 235km north of the capital, ogadishu, ombasa and osaso, offer- development.” which will be for both private companies ing a throughput of up to 30 TB/sec. In and public bodies. A memorandum of un- preparation for DARE2, which will link Per capita, the most derstanding was signed on 20 March 2019 Dar es Salaam and Maputo, DARE1 will connected area in the world between renewable energy specialist eco also be connected to the global network Djibouti expects to play a key role in this eco, telecoms euipment company Tel- through a number of cables in Europe, the development. It already has 11 local and sam and the Djibouti government, repre- Middle East and Asia. international undersea cables, including sented by Djibouti Telecom and Électricité This interconnection project will be ulf ridge International I, Transcon- de Djibouti. operated jointly by a partnership of re- tinental urope India ateway I, - The digital sector will be a ey part of gional operators including Djibouti Tel- y, , , the regional growing our economy, improving qual- ecom , omalias omtel and enyas Aden-Djibouti cable, AAE-1 and SEA-ME- ity of life for Djiboutian citizens, and Telkom. , maing it the mostconnected area strengthening our position as a logistical The Islamic Development Bank will in the world on a per capita basis. and commercial hub in the region,” says cover 60% of its $100m price tag. As the government works to turn digi- Communication Minister Abdi Youssouf ere very een to etend D to talisation into a motor of development, Sougueh. new regions and connect it with other Djibouti looks towards a future as a re- hile once Djibouti was a place for cables to improve accessibility in Africa gional internet hub. Djibouti Telecom is merchants to meet and trade goods, our and throughout the world,” explained Mo- looking to play a big part. As the only goal is to make it a place to meet and hamed Assoweh Bouh, Director-General operator on the national market, the com- trade data, says President Ismal mar of Djibouti Telecom. It offers competi- pany has taken on the role of being, in the Guelleh. n Aviation

Abdourahman Ali Abdillahi – Director General, Air Djibouti Sky’s the limit for restructured Air Djibouti New routes and new planes are all part of a more ambitious new vision for the country airline. Five years after its revival, Air Djibouti, 30% owned by Djibouti Airport and 70% by Great Horn Investment Holdings, seems to be out of the restructuring phase and is starting to take off.

How would you assess the airline’s progress e are also etending a cargo route to since its relaunch five years ago? Istanbul and Jeddah. These are some of Air Djibouti was relaunched in 2015 and the big projects we are working on. I have been in this job for two and a half years. Progress has been made from the Air Djibouti is effectively an airlink to com- operational standpoint and regarding the plement the existing connections provided by airport itself. the port, the railways and the roads? As far as the airline itself is concerned, This ‘sea-sky-land’ strategy covers both we have bought new planes, the personnel passengers and goods. The idea is goods has been trained, and new routes have destined for Uganda, for example, can been opened up, including Aden, Moga- arrive via the port through the free trade dishu, Addis and, since 2 January, Jeddah. one, and then be own to ampala by e will be adding Dubai, airobi and also Air Djibouti. Cairo in the near future. e anticipate having two more routes How important is the cargo business? by , Paris and ondon, to meet the Cargo already represents over 55% of our needs of the diaspora, principally the business. For 2025, we have set ourselves Comorian community in France and the other objectives for both passengers and Somali community in London. goods. e are woring very closely with the free trade zone, which is destined to What are your near-term goals in terms of become the biggest on the continent, in developing business? order to ensure a vital air link. e want to create a hub that will act as That is why Air Djibouti is busy train- a platform to connect the Horn of Africa. ing pilots. e are also in discussions In this respect, Djibouti is well positioned with Airbus to buy two additional A320s in connecting the markets of the COMESA to complete our fleet that already includes regional block. By adding new routes, we two Embraer 145s, two Boeing 737-500s, will be able to build our passenger num- Top: Abdourahman Ali Abdillahi, Director an irbus and a oeing IP . bers, as well as give them direct access General of Air Djibouti. Above: Some of the young A country like Djibouti has so many op- people in training with the airline to Jeddah and Dubai, where we see a lot portunities – it is up to us to seize them. of traffic involving people from the region. To accomplish this, you’ll need a big team of By providing direct access to a hub trained personnel? lie Dubai, we are effectively connecting e have put the emphasis on training, Djibouti to Asia and the Middle East. For ready the platform for Yemen, especial- because an airline cannot develop with- Aden, we have just obtained a licence to ly for international organisations such out properly trained staff. e have young operate daily ights. y the summer, the as UNICEF and UNESCO – as well as the people in training and we are also setting period when there is the most traffic, we US, for carrying cargo to Somalia and up a maintenance centre for the planes. will have secured our slots for Nairobi Yemen. Some engineers have just returned from and Oman, with an expected 240,000 That is why Djibouti has created infra- China. And I would like to point out that passengers this year. structure within the airport in terms of we have five women pilots, a first for Concerning air cargo, Djibouti is al- warehousing and other logistics services. Djibouti! n SPECIAL COUNTRY FOCUS DJIBOUTI Investment drive

Mahdi Darar Obsieh (below), DG, National Investment Promotion Agency (NIPA) A new magnet for investment in the Horn Djibouti’s new investment drive has been spectacularly successful but work is still going on apace to make it a rival to the likes of Dubai.

What is the mission of the National Invest- given the country import substitution, ment Promotion Agency? or even export, capacity. Food products, e have three main missions: first, carry- building materials, office items and even ing out ongoing diagnostics of the state of locally assembled 4- and 3-wheel vehicles, development of the private sector; second, are exported in the sub-region. Not to the promotion of investments, with the mention the free trade zone, which is re- objective of directing both domestic and ally going to play a pivotal role. The trade foreign private capital towards promis- balance will obviously benefit hugely. ing sectors; and third, driving partner- Some 60% of investments are inter- ships and networking between private national and 40% domestic. Among the domestic and international operators by international investors, the majority are implementing sizeable projects involving from Arabic countries, with the United the transfer of technology and knowledge. rab mirates in first place with investments in industry, including a cement What measures are in place to encourage works and a reinforcing rod factory, as investment? well as in tourism, hotels and real estate, In terms of administrative procedures, deployed in the jurisdiction to further ac- and among other areas, retail and distri- this is done through the one-stop-shop celerate and clarify procedures for settling bution shopping mall services. inaugurated by the Head of State in 2017, disputes. There is also now the publication Djibouti is also seeing investments which hosts the representatives of 15 of commercial justice rulings made by the originating from Somalia and Ethiopia, government institutions to provide syn- Supreme Court. especially in banking, real estate and chronised services to economic operators, Another major reform concerns access tourism. e should also mention hinese cheaply and efficiently. to financing. The entral an has devel- private investments in the value chain for The facilities available range from oped a national payment system P, a salt, and in real estate and hotels. assistance with starting a company to register of loans, a register of guarantees, They are currently implementing major obtaining services such as electricity, and laws on leasing, payment orders etc, hotel projects to optimise the country’s telecommunications and water, and also to reinforce guarantees for creditors. natural potential and turn it into an inter- include visas, residence permits, work There have also been major reforms national destination that could even rival permits, etc. e also offer structural fa- in terms of starting businesses. Presi- Sharm El Sheikh, with its well-preserved, cilities, including in terms of business dential decree has ordered a maximum of heavenly beaches. premises, and legal and marketing advice. three days for the formation of a company The orld ans Doing usiness and the current average is just one day. Are we seeing a new country emerging? ranking, which assesses the ease of do- In terms of costs, it has gone from an e are seeing a spectacular transforma- ing business in 193 economies, has ranked average of $2,000 to just $150. This has tion of the structure of the economy, and Djibouti among the 10 most reforming resulted in business start-ups trebling in also the country’s social structure, with countries for three consecutive years! the very first year. e have thus gone from major efforts to develop the human capital. an average of 450 per year to over 1,500. Djibouti is thus following, or even over- What are the main reforms being under- taking, Dubai, which had less potential taken? What is the impact on investment? than Djibouti to begin with. There is a significant reform in com- Investment is undergoing an exponential Djibouti is also a beneficiary of the mercial justice, with the revival of the increase. Over 2015-2019, private invest- P agreement, , and the reat- Commercial Court and the training of ment reached about $2bn, with the con- er rab Free Trade rea greement. e specialised judges. There has also been a solidation of over 5,000 direct, full-time wear two hats, Arab and African, the result substantial reform of the Civil Code and jobs. of our history as a country at the cross- the ode of ivil Procedures that were There is an expansion in the industrial roads of civilisations, of being a ‘land of over one hundred years old. sector which accounts for about 30%. This exchange and encounter’ that we are try- An information system has also been strong rise in industrial investment has ing to optimise. n SPECIAL COUNTRY FOCUS DJIBOUTI Tourism

‘rotten’ in the local language – this site is The 7 wonders well worth the detour. Balho: Some 80km north of Lake Assal, this recently discovered prehistoric site has some exquisitely preserved cave paint- of Djibouti ings. A skull fragment dating back thousands of years was found in one of the ancient tombs. It’s a sign that here, not The government is determined to develop the country’s far from ‘Lucy’(regarded as the mother tourism potential, which is based on its natural wonders. of manind, the first humans on earth walked through the region.

The Ardoukoba: Another exceptional site, situated between the Goubbet al-Kharab and Lake Assal, the Ardoukoba is a geolo- jibouti holds a treasure trove already under way. In December 2018, the gist’s and volcanologist’s paradise. Bearing of delights for the tourist in Djibouti Hotel/ Mall development was of- witness to the perpetual movements of search of new and authentic ficially launched by President Ismal mar the earth’s crust, the site surrounds the discoveries. But it’s a gem Guelleh himself to signify the importance eponymous volcano, reaching an altitude in its rough and unpolished placed on the project. of 298 metres at its peak. It was born of an form. Everything has yet to It is described as a ‘multifunctional eruption that lasted a week in November Dbe done in terms of hotel and road infra- complex’, constructed by the Chinese 1978, and has been dormant ever since – structure, planning and development of company, Touchroad International Hold- but the sea of black lava remains. tourist sites and also, in training the key ing TI. personnel in the sector. To be situated along the Route de Venise The Goubbet al-Kharab: It’s a legend- Currently, tourism accounts for only near the Bawadi Mall, the project includes ary place that has attracted some of the of national DP and the government the construction of a 5-star hotel with world’s most famous scientists, including is keen to raise this to a more substantial 180 rooms, several of which will be presi- naval commander Jacques Cousteau. The figure and tourism is also a good genera- dential suites; a 4-storey building, with a story goes that he went diving here, and tor of jobs. The overall plan is to cater to large shopping centre on the first oor discovered something that humanity was business and leisure tourism by develop- over thirty high-end stores; two big cin- not ready to see”, preferring to keep it to ing beach resorts and diving centres, as ema screens and Africa’s most modern himself. He took the secret to his grave. well as ecological tourism, which will casino, which by itself will occupy more It has always been the subject of legend focus on discovering Djibouti’s archaeo- than , suare metres and finally, and superstition. logical and prehistoric sites. nine conference rooms with a total capac- A marketing strategy will aim to place ity of 1,200 people. Day Forest: Located at an altitude of 1500m ‘Destination Djibouti’ on the international in the Goda Mountains, Day Forest Na- market. To help attract more visitors, the Djibouti’s seven wonders tional Par might be a living testimony price of an entry visa for Djibouti has been Lake Assal : The lowest point in Africa and of what Saharan and Arabian vegetation reduced from $79.2 to $22.6 for tourists the third-lowest on the planet, 153 metres must have been like thousands of years and business travellers; the transit e-visa below sea level, and the second-saltiest ago. The forest is an outstanding reserve days now costs , and a shortstay lake in the world after the Dead Sea, Lake of biodiversity. evisa days is . Assal is set in a unique landscape that In the meantime, natural sites will can’t be found anywhere else in the world. The Seven Brothers: According to enthu- be promoted. Djibouti has a number of siasts, this is one of the world’s most orld eritage sites, including Lake Abbe: Another of Djibouti’s exotic beautiful places for underwater diving. Lake Abbe and Lake Assal, Day Forest natural wonders is Lake Abbe, where hot An archipelago made up of dry volcanic ational Par, the tumulus of wellos and springs bubble up in the middle of the islands, it is also a migration corridor for the Abourma cave paintings. desert. Despite the sulphurous odour it numerous birds from the northern parts One of the most ambitious projects is gives oﬀ hence the name abbe, meaning of Europe and Asia. n

Below: Lake Assal, a crater lake in central-western Djibouti AfCFTA

Unleashing the economic potential of Africa

The strategic Through DPFZA and GHIH (Investment • Doraleh Multipurpose Port: with a crossroads for Africa Management Entity), the country has, over handling capacity of more than 8 Situated at the mouth the last couple of years, invested more million tons per year of the Red Sea and at than $15billion to modernize existing • Port of Goubet and Port of Tadjourah: the gateway to the Suez facilities and build new infrastructure specialised in salt and potash Canal, Djibouti sits not only to unlock Djibouti’s economic • Djibouti International Free Trade Zone on a highly strategic potential - and consequently that of Africa (DIFTZ): aims to become the biggest in location. It’s at the heart of global trade - but also meet the growing needs of the Africa routes, connecting Africa, Asia and continent. • The Addis-Djibouti railway, African’s Europe. In a world with 90% of trade first transnational electric railway carried by the sea, Djibouti is leveraging Multimodal infrastructure network its position to connect landlocked African Djibouti has developed a multimodal A welcoming business environment countries to major global maritime routes. transport and trade hub. Our state-of- Djibouti has also implemented a series of the-art facilities include: policies to ensure an attractive business environment for international companies. Access to dynamic markets DPFZA is also implementing Investing in Djibouti means having innovative technologies which • Djibouti International Free Trade Zone access to some of the most dynamic will ease operations for businesses (DIFTZ) regions in the world. locating in the new International Free • Companies settling in the newly Trade Zone (DIFTZ). launched DIFTZ will benefi t from • Preferential access to COMESA world-class incentives including: markets including Ethiopia, the Djibouti Damerjog Industrial • 0% property tax fastest growing economy in Africa Development (DDID) • 0% corporate income tax • Eligible for AGOA preferential policy; The new Djibouti Damerjog • 0% Dividend tax duty free access to the US, if goods Industrial Zone (DDID) project will • 0% VAT transformed up to 40% in Djibouti create complementary investment • 10.2% Social Security • Eligible for ACP preferential policy opportunities for those also investing • Work permit for foreign workers with duty free access to the EU in the free zone. It will include a • A currency pegged to the US dollar markets ship repair, dry-docks and a multipurpose port, expanding our Also, all businesses operating from Djibouti as a modern current port oﬀ er. the DIFTZ will benefi t from the Port destination for investors It will also expand the country’s Community System (PCS), which Djibouti hosts some of the most modern economic diversifi cation, building provides a single point of entry for ports on the continent and is proud on fi ve major pillars of industry: import and export. A paperless system to now host one of the most modern energy, petrochemical, metal forging, and in operation 24/7, it allows the and technologically advanced free maritime and building materials. easy coordination of air, sea, land and zones on the African continent. The The country is taking full rail trade, enabling businesses to take country has established a ‘one-stop- advantage of its strategic location to advantage of the multimodal transport shop’ which will allow businesses to build complementary industrial and connections within Djibouti and with the operate more eﬃ ciently by handling all fi nancial facilities which will enhance neighbouring countries. administrative procedures. the existing trade and logistics hub.

@dpfza @dpfza @dpfza @dpfza communication IC Pub_210x270-OK.pdf 1 20/03/2020 09:06

SPECIAL COUNTRY FOCUS DJIBOUTI Human capital

Idil Aden Robleh, Director, Training Centre, of Commerce. It’s work that is beginning Djibouti Chamber of Commerce to bear fruit. The Chamber is involved in training and access to work via other programmes de- livered in collaboration with the National Agency for Employment, Training and Building fi t-for- Professional Integration FIP. usinesses have confi dence in us of our clients are employed in the private sector, and 20% are individuals who want purpose skills to upgrade their skills. This training is tailored to meet the needs of businesses. Furthermore, in the entrepreneurship There is a large imbalance between the skills needed by fi eld, we put in place a support and ad vice unit for startups in . e steer Djibouti’s burgeoning economy and the labour supply, the young people, help them in formu- especially among the youth. The Chamber of Commerce’s lating their business ideas, in preparing Training Centre is working to fi ll this gap. their business plan, in completing their market research. The accredited management centre also supports them on a voluntary basis, because we are trying to counter the failures we see daily at the Chamber of Commerce.

What are the hurdles facing What is the state of the labour young entrepreneurs? market in Djibouti? As everywhere in Africa, the crux of the The labour market in Djibouti, as is com- matter is access to fi nance. The govern mon in African countries, is marked by ment has implemented a series of initia- a very large population of young people, tives including the Centre for Leadership with a high unemployment rate, and there and ntrepreneurship , with which is an imbalance between actual supply we are collaborating. A guarantee fund and demand. has also been put in place, driven by the The government is aware of the situ- Ministry of Economy and Finance, to give ation and, as a fi rst step, has led several young people’s start-up projects a chance programmes of basic on-site training with of achieving fi nance via a guarantee sys partners such as AFD, USAID and others. tem. These are initiatives which did not In terms of vocational training, the eist fi ve years ago. Djibouti mployability Project PD was e also wor with the inistry for the launched with USAID in 2017, aimed at im- dvancement of omen, Family elfare proving the employability of young people. and ocial ff airs to encourage female hile there is signifi cant demand in entrepreneurship through training. Even Djibouti’s private sector, unfortunately though Djibouti is a traditionally patriar- young people don’t meet their require- chal society, the women are both strong ments. It’s not just a question of tradi- and respected. tional skills but also life skills – knowing Given the importance of ports to our how to behave at work, how to express economy, the Chamber handles a training oneself, how to conduct oneself, and so on. centre dedicated to jobs in transport and logistics. The port staff , amongst oth What role does the Chamber of Commerce’s ers, are trained there and we use that op- Training Centre play? portunity to encourage the integration of For some years, the government has asked women into port occupations that are not us to respond to the collective eff ort to simply administrative. boost young people’s entry into the work As a voice of the private sector, we echo environment by developing their skills. their needs in a general way, for example The Chamber of Commerce established by improving the climate for business by its training centre in 1988. initiating tax provisions, or facilitating As a representative of the private sector, business creation, and so on. From 2017 we can organise events and face-to-face onwards, startup projects can benefi t meetings between the private sector and from ta eemptions for their fi rst three those public institutions involved in voca- years of trading. tional training in order to better identify Our positioning at the Chamber of the needs of the private sector. Commerce, and the one that we know Since 2018, 3,000 young people have Top: Idil Aden Robleh, Director at the Training works best, is to provide a three-year been trained in basic skills and entre- Centre. support programme where we deliver a Above: A group of youths attending a training preneurship, particularly through the PD workshop at the Chamber ready-made service. This partnership will and USAID projects. I myself am the coor- soon be put in place with the stakeholders dinator for the PD project at the hamber involved with entrepreneurship. n SPECIAL COUNTRY FOCUS DJIBOUTI Interview

Sonia Le Gouriellec – Author and researcher and international institutions to more fully embrace democracy. Nevertheless, the regional situation does seem less favourable to this posi- Djibouti: tioning. In fact, we can see a reduction in Djibouti’s regional influence since relations between Ethiopia and Eritrea became peaceful in summer 2018. calm at the eye The role played by the Gulf States in the peace process resulted in the marginalisation of Djibouti: peaceful relations between Addis Ababa and Asmara open of the storm up other ports for Ethiopia. The President of Djibouti, Ismaïl Omar Guelleh, is the significant absentee in the reshuffle. Sonia Le Gouriellec (below) is a lecturer in political science at The reconfiguration of the alliances seems to be going ahead without Djibouti the law faculty of the Université Catholique de Lille and is in really being involved. Numerous clashes charge of lessons at Sciences Po (Reims Campus). She is also between the President of Djibouti and Sheikh Mohammed bin Zayed Al Nahyan, the author of Djibouti, la diplomatie de géant d’un petit État the Crown Prince of Abu Dhabi – the big- (‘Djibouti, the gigantic diplomacy of a small state’), in which gest of which was over the nationalisation of the port of Djibouti in 2018 – might she discusses how the country has been expertly balancing a explain this marginalisation. host of international forces. In the meanwhile, Djibouti is aiming for a seat on the United Nations Security Council... As early as 2006, President Ismaïl Omar Guelleh announced his objectives: to strengthen the appeal of his country and For a small nation, how do you explain Dji- “affirm the presence of Djibouti on the bouti’s diplomatic clout? global stage”. The country has thus dou- An initial observation that guided my bled the number of its diplomatic missions writing was that the average number of all over the world. diplomatic missions of small states is It is also a member of more than 50 less than 10 and many have even less. In non-African international institutions. 2017, Djibouti had about 45 such missions And, too, it is active in international ne- abroad. This is quite an exceptional figure gotiations and was one of the first to sign for a small state. the COP21 agreement on climate change. This leads me to conclude that with However, despite its efforts, the coun- the decline of the American superpower, try has so far had to make do with in- bargaining and negotiation have become termediate roles at leading international the rule and can allow any country to organisations such as the United Nations succeed. This gives small states room for Development Programme (UNDP), the Af- manoeuvre. rican Development Bank (AfDB), the United Nations High Commissioner for Refugees How do you explain the unique success of (UNHCR), UNESCO and the Economic Com- Djibouti in hosting six foreign bases? mission for Africa (UNECA). Djibouti has made the most of the opportunities offered by changes in the in- Almost 80% of Djibouti’s trade is with Ethio- ternational system: with the launch of the As early as 2006, President pian and most of the major projects are funded ‘global war on terrorism’, the small coun- Ismaïl Omar Guelleh announced by China. Is there a danger of dependency? try first welcomed an American base in the The relationship with Ethiopia as the re- early 2000s, then, with the fight against his objectives: to strengthen his gional power is both a source of Djibouti’s piracy, Japan came along, followed by Italy country’s appeal and “affirm dynamism and a risk factor for the future. (Germany and Spain also maintain a pres- the presence of Djibouti on the The dilemma faced by Djibouti is a ence). And finally, the New Silk Road has reflection of a contradiction inherent in made Djibouti a gateway into East Africa global stage”. its strategy. By seeking, quite rightly, to and China has set up a military base while diversify its partners and by doing so, to ramping up investment in the country. stimulate its economy, Djibouti has become The government in Djibouti has made closer to China, which is in turn in favour its stability into a brand it can sell. Long of regional economic integration. presented as a ‘peaceful haven’ or the ‘eye This integration creates an even greater of the storm’, it has tried to mediate in interdependence with Ethiopia, which may regional crises, especially in Somalia. have more ambitious aims. Djibouti is at This message of order and stability in risk of finding itself in an uncomfortable a conflicted region also allows it to reduce position of servitude, with a resulting loss the pressure from Western governments of sovereignty. n SPECIAL COUNTRY FOCUS DJIBOUTI Interview

Samatar Abdi Osman – Director General, CTID Firing up the talent factory Samatar Abdi Osman (below) is the founder of the Centre for Technology and Innovation for Development (CTID), an incubator for tech start-ups. He believes Djibouti can develop into a global tech hub if it can harness the enormous potential talent of its youth.

How did you get into the ITC industry? a regional hub for ITC. However, for ITC to Combined with my various formative ex- become a real driver of growth and compet- periences, some training at Sciences Po itiveness for Djibouti, it remains essential university along with a decade’s worth of to strengthen our human capital in order local and international contacts – includ- to get a better hold on the technological ing some strong personalities I consider revolution and the professions of the future. role models – enabled me, during Fran- It is to prepare this new generation that cophonie week in March 2017, to launch in 2018, the CTID launched the training the Centre for Technology and Innovation programmes CODE 4 YOUTH and Djibouti for Development (CTID) with the ambition IT TALENT: Objective, 1000 Coders. of making Djibouti the first ever Franco- In addition, we have also launched the phone tech hub in East Africa. very first youth communities who have For me, founding the CTID was also a decided to share their experience of issues way of training the talent of tomorrow so related to digital tech and its challenges, as that Djibouti could also be seen as a like well as its opportunities such as TECHKOOL Dubai and Singapore. and the GIRLS IN ITC community for young The CTID supports young people lead- StartUp Weekend, TechCamp women. While thus far, our advantage is a ing innovative, high-impact projects in and advanced level training result of geography, the big issue in the fu- ITC, renewable energies, agribusiness, such as Djibouti IT Talent, ture will be learning how to better manage environment and service sectors. this asset and create new relative advan- We have succeeded in creating added our flagship programme tages in the digital sector. value, impact and to act as a catalyst for will involve training 1,000 In order to do this, it is vital to provide our ecosystem by launching the first ma- Djiboutian coders by 2025 better support to creative young people who jor events on entrepreneurship for young are innovating in the health, energy, and people. For example, StartUp Weekend, smart green sectors right now, not waiting TechCamp and advanced level training for tomorrow. such as Djibouti IT Talent, our flagship programme that involves training 1,000 Is the government supportive of the develop- Djiboutian coders by 2025. ment of human capital? Ultimately, we want to kick-start the It is a priority focus, not only for Djibouti talent that we have in our young people, but for all of Africa, which remains the by inviting them to make their own op- youngest continent in the world. But even portunities instead of waiting to be given more so for Djibouti, which has a popula- them. Since they call you ‘Djibouti’s Mr tion of 1 million, 65% of whom are under Tech’, what is are the chances that Djibouti 24. This is not going to happen by merely could become a regional hub. raising young people’s awareness—they Djibouti has a lot of potential, thanks will have to become the agents of their own to its geographical position in the world’s destiny. For them to do this, they need to third-busiest shipping route. This loca- conquer ITC, which is a tool that should not tion gives it a lot of advantages for ITC, be reserved for the elite. At the moment, especially with the eight undersea cables while young people are very present on that pass through it interconnecting Eu- social media, they don’t go any further— rope, Africa and Asia to meet the strate- very few use it for business, creating added gic needs of these continents, and which value, passing on knowledge, or having consequently, give Djibouti the status of discussions. CASE STUDIES: by elimination. operator Djibouti Telecom. “And yet, the better the counselling Moustapha. meets their aspirations, the more young Mohamed Ali, Sikieh, Ilyas, all in their 20s people have a chance to succeed and adapt Abdoul Kader in their early 20s Launched a start-up called Djibcarto, a to the market”, explains Samar, who is Winners of a competition organised by collaborative mapping system”, explains also passionate about the theatre. “I am in the Centre. Mohamed Ali works in energy Moustapha, a graduate in geographic in- the same situation. I have to sit my bac- efficiency, a major issue for the country. formation systems (GIS). “The idea is that calaureate in a few months and I have no Kader an agronomist by training, proposes young people share their knowledge of idea what I want to do,” she adds. recycling the algae that covers the beaches maps, the locations of hospitals, roads “The platform will have a head office of Djibouti to turn it into food products for etc. with other people. and subsidiaries in all the schools, as well infants, herbal drinks, juices and cosmetic “I am passionate about maps and I as counsellors able to answer the pupils’ products. couldn’t wait to see young people take an questions. And why not also have activi- interest in this sort of data that normally ties, debates with experts from all over the Rabia Houssein gathers dust in a drawer, but as decision- world… It’s basically an idea, but I really Project Manager at CTID. “We offer a makers”, continues Sikieh, a graduate in want to make it come true”. number of programmes with a lot of pres- town and country planning, and a cartog- entations, above all for women and girls, rapher in a public agency”. “It’s a deci- Khalid, 23 years old with whom we work on self-esteem, self- sion-making tool”, adds Moustapha. “To “I am an e-commerce entrepreneur. I cre- confidence, with competitions, meetups stimulate projects, help the government ated an online sales platform, because and training. find inspiration in our ideas”. the problem here in Djibouti is that there “Athe moment, the CTID is organising, is nowhere you can find all the products along with Girl in ICT – the community Samar, 16 years old you need. Then there is the question of of girl ICT enthusiasts – the Miss Geek “I am working on a project for an educa- delivery. Then payment…” Djibouti competition which will elect the tion counselling platform for pupils in the His solution solves all these issues country’s representative to defend the na- first and second year of secondary school and also benefits from a more favourable tion’s colours at Miss Geek Africa during – an area that is not properly dealt with ecosystem: whereas until recently there the SMART AFRICA conference in Conakry in Djibouti. We lack information and so had been no mobile payment solution in this year. That is why we have just fin- young people end up choosing their future Djibouti, it is now beginning to develop ished a tour round all the middle and high direction by intuition, parental advice or with the launch of a product by the local schools in the five regions of Djibouti”. SPECIAL COUNTRY FOCUS DJIBOUTI Transport

24.9m tonnes of freight annually, although the current haulage is about 5m tonnes - with 6m tonnes annually expected in Massive boom 2023. Its development is accompanied by construction work at the Port of Doraleh, expected to increase the port’s annual cargo handling capacity to 10m tonnes by in transport 2022. Operations on the new railway are undertaken by the China Railway Group Ltd and the China Civil Engineering Con- struction Corporation until 2023 when infrastructure operations can be taken over by local employees, who are being trained. The railway is the first step in a vast Djibouti will spend $15bn over the next five years to build new 5,000km-long network of rail which Ethi- infrastructure and improve its roads, rail and airport network opia hopes to build by 2020, connecting it to Kenya, Sudan and South Sudan. as it seeks to position itself at the heart of African trade. Airways: Meanwhile, development of the airline sector is also underway. The national carrier, Air Djibouti, was relaunched in 2015. Now 70% owned by the Djibouti Ports and Free Trade Zones Authority and 30% by the British company, Cardiff Aviation, it has a new fleet (two Embraer ERJ145s, one Boeing 737-500 and an Air- bus A320, recently acquired on lease) and operates new routes. After Somalia, Somaliland, Ethiopia and Yemen, it has added Jeddah to its destinations and is expecting to include Dubai and Cairo by 2021. With a goal of 240,000 passengers within the next year, Air Djibouti is also banking on the new infrastructure projects contained in the government’s route map. These include two new airports, the Ahmed Dini Ahmed International Airport near the Sept-Frères archipelago, and the Hassan Gouled Aptidon International Air- port at Bicidley, intended to multiply by eight the country’s air transport capacity, Above: Stewardesses for the Addis Ababa- position itself as the linchpin for trade which is currently 900,000 passengers. Djibouti Railway react after the first commercial in the Horn of Africa, and to expand its train from Ethiopia arrives in Djibouti in 2018 capacity to 100m tons of goods per year. Chinese investment The other driver of infrastructure mod- Roads: Last November, the Djibouti gov- Railways: The 759km Addis Ababa– ernisation is China. With Djibouti featur- ernment announced the construction of Djibouti Railway, the first all-electric ing in the gigantic Belt and Road Initiative a new northern road link to Ethiopia, fi- inter-country railway system in Africa, as a gateway to the African market, China nanced by Kuwaiti funds. It is intended completed in 2017 and inaugurated in 2018, has invested no less than $15bn since 2008 to provide a second corridor for the flow is changing the whole experience of travel in the country’s new infrastructure pro- of goods from Ethiopia, which is doubling between the two countries. jects in ports, airports and also, digital every year and no longer limited to the It has cut travel time between the two infrastructure. These new projects have movement of potash from Tigray and Afar; nations from about two days on the road already had an impact on the country’s thus, it will help to bolster the competi- to around 12 and a half hours in consider- economy. According to a study by the tiveness of Djibouti’s hub in relation to able comfort. Oxford Business Group (OBG), it is the other ports in the region. It is owned by the governments of investments in port infrastructure which The 112km road has been named the Ethiopia and Djibouti, with a good part of have contributed to the recorded rise in ‘Sheikh Sabah’ after the Emir of Kuwait the $4bn cost for the system coming from commercial activity in Djibouti in 2019. and is to link Tadjoura, the country’s China, which constructed the railway. “The recent boom in infrastructure second city, with Balho on the Ethiopian The railway has a total capacity of investment in Djibouti could turn the border, before heading up to Mekele in the country into a regional hub for East Af- north of Ethiopia. rica, create jobs and help return debt to Designed to take 60 ton lorries and China has invested $15bn a sustainable level,” the IMF has com- relieve pressure on the Route nationale 1, since 2008 in Djibouti’s new mented. The supporting evidence is that which runs from the capital to the Ethio- since 2016, the growth rate, which is in pian border, the new road link will sup- infrastructure projects in ports, excess of 6%, has been driven by public port Djibouti’s new ambitions, namely to airports and the digital sphere. investment. n Intare Conference Arena, Kigali, Rwanda 1-7 September 2020

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