DECEMBER 2019 ISSUE NO. 331 The Shifting Sands of Djibouti MONTY KHANNA ABSTRACT In spite of Djibouti being one of the smallest nations in Africa, its strategic location coupled with the shifting geo-politics of the region have increased its relevance manifold. Various events have influenced the position of Djibouti in the international reckoning: the secession of Eritrea from Ethiopia, the ‘Global War on Terror’, and increasing piracy off the Horn of Africa. Today Djibouti has the distinction of hosting military bases of four major countries, including China’s first overseas base. China has also started making deep inroads into the economy of Djibouti. This has created a large vulnerability for the United States, France and Japan, all of which depend on China-controlled ports for the sustenance of their bases. (This brief is part of ORF’s series, ‘Eye on China’. Find other research in the series here: https:// www.orfonline.org/series/eye-on-china/) Attribution: Monty Khanna, “The Shifting Sands of Djibouti”, ORF Issue Brief No. 331, December 2019, Observer Research Foundation. Observer Research Foundation (ORF) is a public policy think tank that aims to influence the formulation of policies for building a strong and prosperous India. ORF pursues these goals by providing informed analyses and in-depth research, and organising events that serve as platforms for stimulating and productive discussions. ISBN 978-93-89622-23-2 © 2019 Observer Research Foundation. All rights reserved. No part of this publication may be reproduced, copied, archived, retained or transmitted through print, speech or electronic media without prior written approval from ORF. The Shifting Sands of Djibouti INTRODUCTION service industry continued to be dominated by the French as there were few locals with The Republic of Djibouti is a small nation the requisite skills in the post-independence located in the Horn of Africa. It has an area period. of just 23,200 square kilometres, roughly the size of the state of Manipur in India. Based The first major boost to port operations on some of its vital statistics—a population came with the breakup of Ethiopia and the of about a million, and a GDP of under US$ formation of Eritrea in 1993, after a brutal 2 billion1 —the nation is widely expected to 30-year war. Ethiopia was then left without be nothing more than a fringe player on the a coast, and continued border violence with global stage. However, shifting geopolitics as the then newly formed state of Eritrea did well as its location just south of the straits not allow them any access to their prior of Bab-el-Mandeb, on one of the world’s ports such as Massawa on the Red Sea. As a major shipping routes, have given this nation result, the Port of Djibouti shot into greater more attention in the study of international prominence for being the primary maritime relations. gateway to a nation that was several times its size. As the traffic to the port rose, the nation Djibouti’s history is intertwined with would benefit immensely. trade. In the colonial era in the late 19th century, France signed treaties with the THE WAR ON TERROR AND THE ruling Somali and Afar sultans and formed AMERICANS the territory of French Somaliland, which included present-day Djibouti. Sometime The 2000s witnessed a watershed in Djibouti’s thereafter, Djibouti served as host to a contemporary history, with the rise of sheltered port serviced by a railway line to radicalism and the launch of the United States Ethiopia. Work on the railways and the Port (US)-led “global war on terror”. Following of Djibouti began in 1897. Once the line was the 9/11 terrorist attacks in its soil, the US completed in 1917, the significance of the responded swiftly by launching ‘Operation port grew rapidly.2 Enduring Freedom’ on 7 October 2001.3 The offensive met its initial aim of removing In 1977, during the last of several the Taliban from power in Afghanistan. referendums pertaining to the governance of Eventually, the US and its allies realised the land, the people voted for independence that the elimination of the remnants of Al- and the Republic of Djibouti was born. Qaeda and, more importantly the return to The French, however, maintained a strong stability of the region, would be a protracted military presence in the form of the French campaign. Further, it was also observed that Foreign Legion. Further, like most countries the spread of radicalism was not localised that won their independence, Djibouti to the Afghanistan-Pakistan (Af-Pak) region continued to depend on their former colonial but had grown roots across the Middle East masters for economic sustenance. Most of the North Africa (MENA). This necessitated the 2 ORF ISSUE BRIEF No. 331 DECEMBER 2019 The Shifting Sands of Djibouti setting up of the Combined Joint Task Force was in addition to the revenue generated in – Horn of Africa (CJTF-HOA) for the conduct hosting the traditional French presence in of stability operations in East Africa.4 the nation. Given Djibouti’s tremendous advantages ANTI-PIRACY PATROLS AND THE owing to its geo-strategic location and JapaNESE infrastructure, it became the natural choice as the headquarters of the CJTF-HOA. As While it may appear counter-intuitive, the there were no suitable locations ashore Port of Djibouti received yet another boost to house their facilities, the HQ initially with the onset of piracy, off the Horn of operated from the command ship Mount Africa in 2008. Although the global response Whitney which was berthed at the harbour. was slow, once it came, it developed its Later the decrepit Camp Lemonnier adjacent own momentum. The non-elastic nature of to the airport, which had fallen into disuse global maritime trade was proven beyond after being vacated several years earlier by doubt when far from reducing or rerouting the French Foreign Legion, was reactivated traffic, nations initiated a robust response by and made the home of CJTF-HOA. In 2007, sending their navies to defend their shipping the initial 35 hectares occupied by the facility against piracy attacks. Deployed assets either was expanded to over 200 hectares under a operated independently or as part of multi- fresh lease. This was renewed in 2012 for a national groupings such as the Combined period of 10 years at an annual payment of Maritime Forces (CMF) led Task Force US$ 63 million, with an option to extend the 151 and Op Atalanta, an initiative of the agreement for another decade.5 At the behest European Union Naval Force (EUNAVFOR).7 of Djibouti, where concerns rose over drone Military presence in this region was driven mishaps in the vicinity of commercial flight by a variety of considerations apart from operations, the US also leased another airstrip vessel protection; underlying geostrategic about eight kilometres south of Lemonnier at considerations that were in any case Chabelley from where they began conducting omnipresent. Ships and aircraft required drone operations. ports to replenish from and airbases to be deployed from. In both these respects, given Lease payments for these bases, along the complex geopolitics of the region and with the logistical requirements of the the advantageous geography of Djibouti, the approximately 4,000 troops that occupied nation became an important cog. them,6 brought financial gains for Djibouti. Even though US troops largely operated Djibouti thrived in hosting routine port from within their bases with fairly draconian calls by grey hulls belonging to various restrictions pertaining to mixing with the nations. The airport and its collocated Camp locals, they came with a heavy logistical Lemonnier became hubs of activity as the footprint that brought in revenue to the presence of reconnaissance aircraft in the port as well as to some local businesses. This region witnessed a sharp uptake. The most ORF ISSUE BRIEF No. 331 DECEMBER 2019 3 The Shifting Sands of Djibouti notable development during this period was the dilapidated French meter gauge line the Japanese move of setting up in 2011 its that dates back to the early part of the last first overseas base since World War II, on a century, it has reduced the time taken for 12-hectare plot adjacent to the civil airport transporting freight from Djibouti to Addis to support its forces deployed for anti- Ababa from three days to just eleven hours.11 piracy tasking.8 Startling as this news was Other major investments have primarily to the security community, the nation that been in port infrastructure and associated watched this development most closely was services. These are described in further detail China. Shortly thereafter, China commenced in the following paragraphs. negotiations with the government of Djibouti for its own military base in the area. n Port of Djibouti. As mentioned earlier, even though the port came into being THE BELT AND ROAD INITiaTIVE AND in the early part of the 20th century, CHINESE INVESTMENTS it started playing a much greater role towards the turn of the 21st. More than 90 Djibouti has been a major investment percent of the goods it handles go to its destination for China under the ambit of neighbouring country, Ethiopia. Djibouti the flagship Belt and Road Initiative (BRI). hopes to broaden this scope to serve In keeping with the initiative’s focus of other similarly landlocked countries.12 enhancing connectivity, the bulk of inbound Given the quantum of shipping transiting investment has been in the field of logistics; through the straits of Bab-el-Mandeb, the ports and port services, railways and refuelling of merchant ships (bunkering) facilitation services such as the setting up formed an important part of port services.