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PENRESA FOCUS on DJIBOUTI H.E. Ismail Omar Guelleh Hon. Yonis Ali

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PENRESA FOCUS on DJIBOUTI H.E. Ismail Omar Guelleh Hon. Yonis Ali PENRESA FOCUS ON DJIBOUTI FEBRUARY 2020 EDITION in partnership with H.E. Ismail Omar Guelleh President of Djibouti Hon. Yonis Ali Guedi Minister of Energy and Natural Resources Hon. Ilyas Moussa Dawaleh Minister of Economics and Finance Ahmed Osman Ali Governor of the Central Bank of Djibouti Djibouti On The Shores Of Tomorrow Infrastructures, finance, green energy: set on implementing DJIBOUTI - Africa’s Gateway To The East its Vision 2035, Djibouti is not afraid of taking bold decisions. estled on the upper side of the Horn of develop your country, you must have Africa, just where the Red Sea bends connectivity,” explains Abdourahman Ali, and gradually seeps into the Arabian Chief Executive Officer of Air Djibouti, the Sea through the Gulf of Aden, Djibouti is national flag carrier airline. The country is leaping forward at an incredible pace, investing in interconnectivity to ensure all jumping from 154th in 2017 to the 99th cargos entering the country by sea can be position in the 2018 World Bank Ease of conveniently transferred to the Djibouti Doing Business Report. “The government airport to be shipped to nearby countries N of Djibouti has engaged into an ambitious in a quick and cost-efficient way. reform programme,” explains Hon. Ilyas New terminals have been progressively In partnership with Moussa Dawaleh, Djibouti’s Minister of built from 2006 onwards, allowing the Economics and Finance. “Our targeted country to handle all sorts of cargos, interventions in the business environment from fuels to construction materials. The www.penresa.com aim at nurturing a new dynamic to shift latest addition to Djibouti’s impressive [email protected] the mindset from the public sector to port lineup is the Doraleh Multi-purpose private initiative, create employment Port: 200 metres of quay length, 16 quay This report is sponsored and produced by PENRESA instead of looking for one.” cranes, 690 hectares of total area and and did not involve the reporting and editing staff of Vision 2035 is the government’s 22,000 TEUs of handling capacity for an any third party. strategy aimed at diversifying the annual capacity of over 8 million tonnes. economy, ensuring consistent GDP Further terminals are under construction THIS REPORT WAS POSSIBLE THANKS TO: growth, tripling income per capita and in the northern region of the country. creating over 200,000 jobs within the A country so deeply committed to next fifteen years. “To promote the building a stronger and richer future for modernisation of the system in Djibouti, its population is obviously bound to make as well as its interconnection with the bold choices, especially when it comes to world, we are implementing modern energy supply: the government of Djibouti infrastructures for the inter-payment aims to meet 100% of its energy demand system,” states Ahmed Osman Ali, with renewable sources, to fight pollution Governor of the Central Bank of Djibouti. and decrease the country’s dependence From a logistics point of view, Djibouti on imported energy. Djibouti is on the is naturally poised to be a gateway for verge of a green revolution: yet another nearby countries like Ethiopia, Somalia ambitious goal for a country that wants to and Rwanda, an ideal hub for sea and keep going forward and is never afraid to air cargo transportation: “If you want to think outside of the box. FEBRUARY 2020 • FORBES AFRICA | 3 Ministers Round Table Hon. Mahmoud Hon. Ilyas Ali Youssouf, Hon. Mohamed Hon. Yonis Moussa Minister Ahmed Awaleh, Ali Guedi, Dawaleh, of Foreign Minister of Minister Minister of Affairs and Agriculture, of Energy Economics International Livestock, and Natural and Finance Cooperation & Fisheries Resources Developing And Connecting Djibouti Through A World Platform Penresa sat down with Hon. Youssouf, Minister of Foreign Affairs and International Cooperation, Hon. Awaleh, Minister of Agriculture, Livestock, & Fisheries, Hon. Dawaleh, Minister of Economics and Finance and Hon. Guedi, Minister Minister of Energy & Water. DJIBOUTI - Africa’s Gateway To The East What big project is your ministry focused on right now? Hon. Guedi: We are working toward 100% green energy. We are developing other forms of energy like wind and geothermal Hon. Youssouf: We need to speed up the process of creating energy. We never had a real project in geothermal, but at the job opportunities. First, in education and then in job creation. end of April/beginning of May 2019, the presence of geothermal That is why we are compelled to seek opportunities for young energy in the Fiale project was confirmed. The three drillings people and women. Djibouti has signed the ICSID Convention. were done at a depth of 2,600 metres. Now, we are going to You need a legal framework to reassure investors that their move to the next step, the production. We have signed all investment is protected. We hope that it will boost the volume necessary contracts as far as wind energy is concerned after of the investment, because more investment means more job one year of negotiations to finalise the production of 60 MW opportunities. Vision 2035 is our development plan over the of wind energy with African Financial Cooperation in Ghoubet. next 20 years that will help change the livelihood of people. As of now, the windmills are already being produced, using Djibouti has also signed the African Continental Free Trade German technology. Completion of the project is 12 months, Agreement (AfCFTA). It is vital for African countries to create that so in April/May 2020, we will start with the production of wind common market because trade is the engine of the economy. energy. We have also developed solar energy. The French When you have that framework, that facility to boost and step company Engie contacted us for a first project for solar energy. up the intra-African trade, it creates job opportunities, wealth, We have already signed with EngieAfrique for the development rapprochement between countries and community. We believe of 30 MW solar station on the site of Grand Bara. This will be the that the bigger the market is, the bigger the opportunities to first step and we hope that we will finalise all the documents create job and wealth. for the project in two to three months. As you can see, the energy revolution in Djibouti is coming. Hon. Awaleh: The Ministry is involved in several projects focused on sustainable agriculture. Djibouti has an arid Hon. Dawaleh: The growth over the past five years has been ecosystem; it is more or less a desert with black stones. The 6-7%, which is comfortable. The balance of payment is now at rainfall is on average 150mm per year and we have no rivers. a good level; in the past we had a very high debt, while now The best three activities for Djibouti (because of saline ground) it is at 70%. All the macro-economic indicators are reasonable are date palms, greenhouse horticulture and livestock. One for Djibouti. The driving force of the economy of Djibouti is example is that we have a laboratory here for date palms. There the port, the air, the airport and the infrastructure. We have are a lot of varieties, and the best variety is called Medjool. One six ports, we have trains. We deliver the flow of goods from kg of Medjool is about $US30. It is the highest price for a fruit. It COMESA countries to the world. We also intend to handle the is very difficult to get this variety: California, Israel and Morocco flow of information and finance, of capital between COMESA have it. One tree takes eight years to grow, and in all its life, a and Djibouti because we want to be a hub for money, since date palm will give you 10-20 shoots. The problem is that we our currency is pegged on the dollar. All people in the Eastern do not have date palms here in Djibouti. So, we have done the African region should put their money in Djibouti. We want research and we have discovered that we can produce date to be the hub of the flow of capital and information, since palms from cells. It has taken us 5-6 years, and we have chosen we have seven telecommunication submarine cables, not the best varieties. In the world, we are the fourth laboratory only for Djibouti, Somaliland and Ethiopia, since the cable which produces Medjool dates in this way. We are proud to have encompassing Africa runs through Djibouti. So, our focus areas introduced date palms specific for Djibouti. are transport, flow of information and capital. 4 | FORBES AFRICA • FEBRUARY 2020 Finance With a lack of restriction on FDI, Djibouti’s economy is set to take off substantial tax breaks and its Free Zone. “We have the biggest Expanding And Free Zone in the area,” states Ahmed Hamid Al-Dheeb, CEO of CAC International Bank. “Djibouti has a very strategic location, and the stability of the country is very well appreciated. We will be a Modernising Djibouti’s financial, transit, trading and logistic hub.” The government has worked hard to improve the nation’s ease of doing business, jumping from 154th to 99th in the World Bank’s Financial Horizon ease of doing business ranking in 2018. “The President himself has put some considerable efforts in law reforms with the new Code Djibouti’s financial strategies of Civil Procedure and Code of Commerce, which today facilitates the creation of a business,” explains Comlan David Ocahoumare, including improving ease of business, Deputy General Manager of the Bank of Africa. implementing Islamic banking Djibouti’s banking sector has also experienced rapid expansion in recent years, providing the continent with the roadmap on Islamic and catering to financial inclusion finance as part of its core strategy in financial inclusion.
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