Doing Business in Djibouti

doing business in Djibouti

country profile international treaties and memberships government  Executive: The president is the chief of state and the prime minister is the international  African Continental Free Trade Area Agreement structure head of government. The president is directly elected by absolute majority and regional  African Development Bank Group popular vote, in two rounds if needed, for a five-year term. The prime organisations  African Union minister is appointed by the president. Cabinet is appointed by the prime and customs  Arab Fund for Economic and Social Development minister. unions  Arab League  Legislative: Djibouti has a unicameral national assembly.  Arab Monetary Fund  Judicial: The highest courts are the Supreme Court and the Constitutional  Common Market for Eastern and Southern Africa Council. The subordinate courts are the High Court of Appeal, five courts  Community of Sahel-Saharan States of first instance, customary courts and the State Court.  Group of 77  Next presidential elections: April 2026.  Intergovernmental Authority on Development economic  Nominal GDP (USD billions): 3.73  International Monetary Fund data  GDP per capita (USD): 3 275.14  Islamic Development Bank  Inflation rate (% change): 2.35  Organisation of African, Caribbean and Pacific States  Government revenue (% of GDP): 19.01  Organisation of Islamic Cooperation  Government gross debt (% of GDP): 41.73  United Nations  World Bank Group  World Customs Organization *Source: IMF (June 2021)  Djibouti receives preferential treatment under the agreements listed here: http://ptadb.wto.org/Country.aspx?code=262  The economy of Djibouti is largely driven by the trade and service sector because of Djibouti’s strategic location as a Deepwater port on the Red bilateral  Djibouti has bilateral investment treaties in force with France, Kuwait, Sea. investment Switzerland and Turkey.  Djibouti provides services as both a transit port for the region and an treaties  Treaties have been signed with China, Egypt, Iran and Malaysia but these international trans-shipment and refuelling centre. 70% of port activity at have not yet entered into force. Djibouti's container terminal consists of imports, exports and re-exports. Re-exports consist primarily of coffee from Ethiopia. investment-  African Growth and Opportunity Act related  Djibouti’s main export partners are Saudi Arabia, India, China, Egypt and  Cotonou Agreement agreements / South Korea. The main export commodities include various animals,  Multilateral Investment Guarantee Agency institutions chlorides, dried legumes, industrial fatty acids/oils, coffee and chickpeas.  World Trade Organization  Djibouti’s main import partners are China, the United Arab Emirates, India dispute  Convention on the Settlement of Investment Disputes (ICSID Convention) and Turkey. The main import commodities include refined petroleum, resolution  Permanent Court of Arbitration fertilizers, iron sheeting, cars and palm oil.  Riyadh Arab Agreement for Judicial Cooperation (Riyadh Convention) risk ratings  World Economic Forum global competitiveness index (2019): N/A  United Nations Convention on the Recognition and Enforcement of  World Bank ease of doing business (2020): 112/190 Foreign Arbitral Awards (New York Convention)  Corruption perception index (2020): 142/179 intellectual  A comprehensive list of IP-related treaties signed by Djibouti is available property (“IP”) at: http://www.wipo.int/wipolex/en/profile.jsp?code=DJ treaties

doing business in Djibouti

For more information or assistance please contact:

Celia Becker Executive | Africa regulatory and business intelligence [email protected] cell: +27 82 886 8744

This document contains general information and no information provided herein may in any way be construed as legal advice from ENSafrica, any of its personnel and/or its correspondent firms. Professional advice must be sought from ENSafrica before any action is taken based on the information provided herein. This document is the property of ENSafrica and consent must be obtained from ENSafrica before the information provided herein is reproduced and/or distributed in any way.

LAST UPDATED JUNE 2021