With an ambition to become the “Singapore of Africa”, throughout the last decade Djibouti has implemented many reforms, which have resulted in its rise in the World Bank’s “Doing Business” from 171st place in 2017 to 112th place in 2020. Djibouti has a free trade regime and a free-trade zone status in Eastern Africa. Its strategic geographic position allows it to host the major military bases of France, the USA, China and Saudi Arabia. It is a member of the WTO, the Intergovernmental Authority on Development, the COMESA (Common Market for Eastern and Southern Africa), the Arab League, has signed the African Continental Free Trade Agreement.
Form of Government
Head of State and Government
President Ismaïl Omar Guelleh; Prime Minister Abdoulkader Kamil Mohamed
GDP per capita
In 2010-2019, Djibouti’s GDP growth average rate was 7.2%, with a significant rise in the last 5 years. In 2019 the Foreign Direct Investments in Djibouti reached $180 million. FDI target the ports of Djibouti and oil transportation infrastructure. Djibouti’s trade balance is structurally negative, as it does not export much except cattle and imports large amounts of petroleum products, food and capital goods. However, the country has a surplus in terms of exports in the service sector, largely due to port services fees for re-import and re-exports.
Djibouti is among the 30 smallest countries of the globe in terms of population. However, and despite its humble size, it has strong ambition in the touristic sphere, financing transportation facilities and high standard accommodation. Compared to the regional average, it has a low adult literacy rate, with 58.4% in 2018 for the 15-24 years population. The unemployment rate has averaged approximately 10% since 2000.
Djibouti’s telecom system ranks among the best in Africa. The South East Asia–Middle East–Western Europe and The Europe India Gateway sub-marine fibre cables’ landing points are in Djibouti. Its presence on the 2nd most taken trade road in the world makes it well-connected to foreign actors, particularly Chinese and Dubai. Therefore, the port and its facilities are in the centre of Djibouti’s project of development and are already estimated to represent the biggest container transhipment system of Africa.
Agreement with Afreximbank for VEB’s participation in the trade promotion program as a confirming bank
On October 23, 2019, within the framework of the Russia-Africa Economic Forum, VEB.RF and Afreximbank signed an agreement on general rules and conditions for VEB’s participation in Afreximbank’s Trade Confirmation Guarantee Program as a confirming bank. The document was signed by the Deputy Chairman of VEB.RF Daniil Algulyan and the Executive Vice President of Afreximbank […]