This document summarizes key information about Djibouti presented by the Chamber of Commerce of Djibouti. It describes Djibouti's strategic geographic location on a major sea route, political stability, and currency linked to the dollar. It highlights Djibouti's role as the main transport corridor in the region and open market access to over 450 million people through COMESA. The document identifies investment opportunities in transport/logistics, tourism, renewable energy, and fishing industries because of Djibouti's advantages of equal treatment of foreign/domestic investors and free capital movement.

1. UK-Djibouti
Trade & Investment Forum
London, May 8th 2013
CHAMBER OF COMMERCE OF DJIBOUTI

2. CHAMBER OF COMMERCE OF DJIBOUTI
Mr Said Omar Moussa
PRESIDENT CHAMBER OF COMMERCE OF DJIBOUTI
HONORARY CHAIRMAN OF COMESA BUSINESS COUNCIL
VICE PRESIDENT OF IGAD BUSINESS FORUM
Brief introduction
on the Republic of Djibouti

3. A DRIVING FORCE BEHIND THE DEVELOPMENT
AND THE PROMOTION OF PRIVATE SECTOR
Since
1907
CHAMBER OF COMMERCE OF DJIBOUTI

4. A priviledged position in the international
exchanges : Situated on the 2nd sea route in the world
sea route
in the world

5. Population
 818.159 inhabitants
 Languages : French, Arab, (officials)
Somali, Afar (nationals)
 English is increasingly used, due to the
development of trade relations with the
countries of the region and the installation
of a U.S. military base (since 2003).

6. The economic context
 Djibouti has opted for a liberal economy
as of 1949, by abolishing any control on the exchange and by
using the Djibouti Franc linked to the dollar as local currency.
1 $ US = 177.7 Franc DJ
 Based on service activities connected with the country's
strategic location and status as a free trade zone
in East Africa.

7. Economy
 Positive growth trend since 2004
 GDP (Growth Domestic Product) : 5.1 % in 2012
 GDP composition by sector :
Services : 81% | Industry : 16% | Agriculture : 3%
 Imports in value : (USD Billion 2012) : 126 539
 Imported Products : Food and Beverage, Hydrocarbons, Chemical
products, Plastics, Rubber and Articles, Machineries and Equipments,
Electrical Materials, Vehicules and transport equipments, Textiles
 Exports in value (USD Billion 2012) : 22 999
 Exported products : Livestock, Leather and Skin, Salt, Fish

8. External Trade

9. Investment
 Salient features of the Investment Code
- Foreigners and nationals benefit the same advantages
- Freedom of investors to manage business and to repatriate profits
- Tax incentives and specific tax exemptions (home consumer tax,
income tax, property tax, registration duties, …)
- Guaranties of rights and freedoms.
 Foreign Direct Invesment (% of GDP 2012): 21%

10. Local Private Sector
Major tertiary activities
Transport and Logistics
Banking and Insurance
Technologies of Information
and Communication (TIC)
General Trade
Services providers
Health Services

11. Total Area : 12.2 million sq. Km
GDP : US $ 450 billion (2011)
Increase in Average Annual GDP growth : 5.08% from 3.51% (2010)
Global trade for COMESA countries : Over US$ 244 BN (2010)
Intra-COMESA Trade : US 18.4 BN (2011)
Investment flows : US $ 21.6 BN (2010)
Total Imports Volumes : US $ 137 BN (2010) at 16%
Total Exports Volumes : US $ 107 BN (2010) at 26%
Common Market for Eastern and
Southern Africa - Region :
More than 450 million people
Membership : 20 countries : Burundi, Comoros, DR Congo, Djibouti, Egypt,
Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles,
Sudan, South Sudan, Swaziland, Uganda, Zambia, Zimbabwe
Djibouti an open gate to the COMESA

12. The COMESA-EAC-SADC Tripartite
EAC
COMESA
SADC
East African Community
Southern African
Development Community

13. Angola,
Botswana,
Burundi,
Comoros,
Congo DR,
Djibouti,
Egypt,
Eritrea,
Ethiopia,
Kenya,
Lesotho,
Libya,
Madagascar,
Malawi,
Mauritius,
Mozambique,
Namibia,
Rwanda,
Seychelles,
South Africa,
Sudan,
Southern
Sudan,
Swaziland,
Tanzania,
Uganda,
Zambia, and
Zimbabwe
The New Region

14.  27 countries
 Over 581 million Inhabitants
 GDP of plus 875 billion USD$
 58% of the entire GDP of Africa as a continent
THE BIGGEST ECONOMIC REGIONAL
GROUPING IN AFRICA
The New Region in figures
Areas of Investment in the region
 Infrastructure
 Agro-industry and agro-processing
 Real Estate Development
 New Technology
 Tourism

15. Member of : WTO, IGAD, Arab League, African Union,
ACP/UE, United Nationals and beneficiary country under AGOA
Private sector partnership network : Comesa Business
Council (CBC), IGAD Business Council, Pan African Chamber
of Commerce, Francophone Chamber of Commerce, Islamic
Chamber of Commerce and Industry (ICCI) ...
And many bilateral partnerships
Republic of Djibouti
Worldwide Partnership

16. 1- Transport and logistics activities :
Key sector of Djibouti’s Economy
 20 % of GDP
 Harbour activities income : 20-25 % public income
 10 % of working population
 Growth opportunity of the sector :
Perspective of strong and sustainable economic
growth in Ethiopia (~8% a year)
Perspective of important commercial partnership with the
recently independent South Sudan
Perspective of development of new connected
activities: truckway and connected activities
(mechanic), road building and management, ….
Regional Economic Integration with the COMESA
Investment opportunities

17. 2- Tourism : Great potential but underexploited
 Geological sites, which are unique in their kinds
 Marine fauna among the richest to the world
 Cultural diversity due to cosmopolitan communities
 Growth opportunity of the sector
 Hotel infrastructures in development
 An airport served by 6 international airlines
 Possibility of combined tourism with Region countries (Ethiopia, Kenya, Yemen)
 Goal in 2030: Djibouti wish to welcome more than 500.000 tourists per year
Investment opportunities

18. 3- Renewable energies :
Key sector For Djibouti’s Economy development
 A solar energy potential of 2240 Kwh / sqm / year
 A geothermal potential around 170 Mwh / year
 A wind potential around an annual average of 9.2 m/s
 Growth opportunity of the sector :
 Huge public-private projects underdevelopment
Investment opportunities

19. 4- Fishing and halieutics resources:
Plentiful resources but under-exploited
 An annual production of 1500 tons (2011)
 A potential of fishing estimated at 48 000 tons / year
 Relatively low capital inflow for the small-scale
fishing but with good profitability
 Growth opportunity of the sector:
 Possibility of exports to the sub-region countries
(Ethiopia and South Sudan)
 Possibility of exports to the UE-ACP countries
Investment opportunities

22. Because Djibouti has a strategic geographical
location in the region
Because it is situated on the 2nd sea route in the world
Because its political stability is an additional asset
Because foreigners and nationals
benefit the same advantages
Because its currency linked to the
dollar is freely convertible

23. Because Djibouti is the main corridor of the region,
thanks to its port equipments
Because its telecommunication system
ranks among the best in Africa
Because Djibouti is an open gate to a market
of more than 450 million inhabitants, the COMESA.
Because its financial system which is free of
any kind of exchange control provides opportunity
to a full freedom of money transfer

24. Tel : (+253) 21 35 10 70
Fax : (+253) 21 35 00 96
Email Address : ccd@intnet.dj
Website : www.ccd.dj
1907
2013
CHAMBER OF COMMERCE OF DJIBOUTI
Thank you
for your kind attention !