Djibouti As Never Seen

[Abu-Salman]

There is a boom in the ports, transport, telecoms and banking sector due to strong Ethiopian growth and foreign investments; the economy revolves around the services sector in general and the ambition is to act as a regional hub through the Comesa integration and new opportunities in connecting oil-rich South Sudan etc (hence the new ports and railways).

 

The other sectors have seen increasing investments too lately and the construction boom, for instance, is due partly to Arab investors (as well as Japaneses with their first base abroad, Africa's largest US embassy at $100 millions, Chineses etc).

These pics are not mine but your dream villa may set you back $200-300 000 as per one of the contractors though one could build it himself, buy more accessible properties or apartment flats:

 

 

 

 

 

 

 

 

 

 

[Bluelicious]

Do they speak Somali in Djibouti? What's the difference between Somalia and Djibouti I seriously don't know? :confused:

 

Back to the topic beautiful place it's well build.

[Abu-Salman]

The place is teeming with ports, rail and energy projects among others and the city ever expanding with large new social housing or residential schemes; Iranians only play a minor role but new players such as Japon (first overseas base) are paying substantial dues or investing in farming, industries etc.

Hijrah In Djibouti is a detailed page about the local conditions and cost of living, written by and for French reverts and other practising Muslims that setlle there (a growing trend lately).

 

It shows that around $400 for a single individual or $700 for a family with 3 children is enough for living relatively comfortable (AC for summer heat) in middle-class neighborhoods; some prices may have increased but electricity costs have been very reduced, so were Telecoms and further reductions are planned as further projects materialise (large low cost housing schemes, more generic drugs and decent clinics etc).

Those spending quotes include Islamic schools costs such as the Saudi one that teaches from the elementary level up to university diploma level or provides scholarships to graduates (the educational offer is varied and pretty challenging, more flexibility and choice at university level).

 

There is a huge need for all skills even without experience (langage teaching, telecoms, energy or business fields etc with untaxed starting salaries of between $1000-$2000 a month in general) while self-employment or business prospects are reasonable.

Naturalisation is automatic for those married to locals and easier for Somalis (increasing numbers settling there).

 

Thus, the place reputation as being expensive, a half-truth (it all depends; services for expatriates are overpriced), is increasingly looking as obsolete, while the exceptional beaches and sun are still intact.

[Bluelicious]

Coofle;832388 wrote:

In Djibouti you have two main Ethnic Groups...Somalis and AFAR...

Somalis are Somalis, They speak Somali and Behave Somali....and they are the Dominant group in the country

AFAR are less prominent and politically under represented when compared to Somalis...

 

I have been to djibouti countless times and I always used the Good old Soomaali language in everywhere and with everyone , the only extra thing you will need is a superficial knowledge in French as many people will use french words and phrases like when you buying goods....."Yaakhii

doo miil

bixi"

doo miil

means 2000 in french....But if you say waar af soomaali iigu sheeg he will simply say laba kun...

 

So the difference between somalia and Djibouti is similar to difference between JIGJIGA and HARGEISA or GARISA and MUQDISHO....one people two flags...

Thanks Coofle for the detailed explanation

[Mukulaalow]

Mashallah jabuuti way duushay oo dayaxa gaartey. beautiful.

 

Still, the Djibouti economy relies heavily on the Djibouti port income from the Ethiopian goods, and also aid from the French and the US military (since the US has its largest Africom base in Africa). So They need to diverse into manufacturing, fisheries, and others.

[Carafaat]

Abu Salman,

 

Any idea on the number of political prisoners and prisoners of conscience? And is there any free media?

[Abu-Salman]

Djibouti: Raising Its Game

 

Djibouti continues to post enviable economic growth figures, and for President Ismail Omar Guelleh’s government the priority is keeping up this momentum and meeting the challenges that lie ahead.

Stephen Williams reports.

 

 

Djibouti is celebrating its 35th independence anniversary this month. It is a time for reflection for this small enclave that is so strategically important to the world and Africa’s economy. It is also a time to look towards the future and the best way forward.

 

Djibouti’s economy continued to grow last year by around 4.5% and the country carried on attracting foreign investment. Essentially, this investment was focussed on Djibouti’s most valuable asset – its location at the southern entrance of the Red Sea and the business and trade that it serves with deep-water ports.

 

Its ambition to serve as the Horn of Africa’s gateway to, and for, sub-Saharan Africa has, in many respects, already been achieved. There is a sentiment that suggests that Djibouti should become for the Horn and East Africa what Dubai has become for the Gulf – an entrepôt that can serve as a modern and highly efficient trading hub for the region.

 

Driving this vision forward, the government has given the green light to place the port (and the airport) under private management contracts, and is building the second stage of a new container terminal at Doraleh, with an adjoining oil terminal and transhipment complex.

 

The expansion of the Doraleh port has benefited from a $427m guarantee by the Multilateral Investment Guarantee Agency for the development, design, construction, management, operation and maintenance of the container terminal. In addition, as a means of underpinning Djibouti’s position as a hub for trade, logistics and related services, the country has embarked on building several road corridors.

 

By improving container facilities in Djibouti, the idea is to stimulate an increase in port traffic and open up new opportunities for investment and growth, including attracting other African countries to use the port as a trade gateway.

 

Djibouti has also established a Free Zone to bring in manufacturing companies. A new $300m airport upgrade is under way. A $400m ship maintenance yard, and a $100m desalination plant (for the Doraleh project) are also currently being built.

 

In the longer term, Djibouti must be fully prepared to compete with the proposed new port being constructed at Lamu, Kenya – further south on the Indian Ocean littoral – which could pose a threat to its own port operations. Lamu, and the new rail links that will serve the port, would certainly prove attractive to both Ethiopia and South Sudan – the former currently being Djibouti’s major trading partner.

 

Meanwhile, the country’s capital flows have more than doubled to a very respectable 21% of GDP, consequently creating a balance of payments deficit of just 1.1% of GDP.

 

But, as the World Bank points out, the balance of payments account is likely to widen as the launch of Djibouti’s numerous projects will involve the importation of a considerable amount of capital goods. However, the Bank adds that the deficits will not present a problem, as FDI, and external borrowing can comfortably finance them.

 

More worryingly, the country’s recent economic growth has done little to reduce the unemployment numbers, as even the massive investments in the port and free zones have not generated enough jobs – and clearly Djibouti is highly vulnerable to external shocks such as rising food and fuel prices.

 

By way of a response, the government has launched the National Initiative for Social Development (INDS) to meet various social and economic challenges. The objective of this new policy is to promote access to basic social services and improve the quality and effectiveness of their delivery. INDS has a $47m budget to focus on health, energy, rural community development and urban poverty reduction.

 

Meanwhile, government has acknowledged the need to identify the sectors that can drive growth while creating jobs and plans to market Djibouti’s many attractions as an investment destination. Specifically, the country is positioning itself as a regional centre for the importation, warehousing, value-addition and re-export of goods originating in neighbouring countries.

 

Djibouti’s geological characteristics, lying on the Great Rift, make it especially suitable for geothermal energy generation – a capital-intensive clean energy source that involves pumping water deep underground to be heated, creating steam that is brought to the surface to drive steam turbines generating electricity.

 

It has also identified the financial sector as a prime area for growth. The government has already passed several new pieces of legislation, notably regulating capital requirements, and relating to both financial co-operatives and Islamic banking institutions.

 

Another sector deemed to hold considerable promise is tourism. Djibouti offers ready access to some of the best scuba diving sites in the world, and the wealth of ocean life in the Red Sea is truly astounding. From the highly endangered horn-billed turtle to the shark-whale, and the multitude of brightly coloured tropical fish that, along with the wonderful coral, call these waters home, this is Djibouti’s top tourism attraction.

 

The Gulf of Tadjoura (especially around the town of Obock) contains many species of fish and coral, and is ideal for diving, snorkeling and underwater photography. Waterskiing and windsurfing are also on offer.

 

On dry land, Lake Assal is surrounded by a strange lunar-like landscape of dormant volcanoes and lava fields, and is less than 100km south-west of Djibouti city. It is one of the world’s lowest points, and also one of its hottest areas. You can only reach it by 4x4 vehicle (or camel). Lake Assal is the centre of a nascent salt-mining initiative.

[Abu-Salman]

Vision 2035: A Long-Term Development Plan

 

For Djibouti’s Minister of Economy and Finance, Ilyas Moussa Dawaleh, the need for forward planning is imperative. In this interview with New African, he describes Vision 2035 and the challenges and opportunities that now confront the country.

 

Q: Would you outline Djibouti’s Vision 2035 concept and its objectives?

 

A: We used to formulate very short-term national policies, sometimes on an annual basis but we realised that there were a lot of challenges ahead and risks on the way. For this reason we needed to plan over a longer period. We accept that we will probably not be able to achieve all our objectives during the current administration, but Vision 2035 clearly sets out the aspirations of the President and his government. We also want to encourage Djiboutian citizens to take ownership of this vision themselves, as they have a key role to play. We believe that with this initiative we are encouraging Djiboutians to achieve their own success in what is now a fast-paced and very competitive new world. The Vision 2035 is also based on the key pillars of encouraging economic integration, good governance and human development. This all means increased communication with the people to inform them of the wider opportunities that are available to them.

 

 

 

Q: Djibouti’s economic success is intrinsically linked to the wider region. How would you characterise the relationship with your development partners at this time?

 

A: Djibouti has limited resources and a relatively small population. However, Djibouti’s location has a key strategic geographic position. As one of our colleagues from the IMF mentioned: “The geo-strategic position of Djibouti means the same thing that oil means to Saudi Arabia.”

 

Of course, this unique location means that we must sustain the momentum regionally to facilitate greater trade and integrate our economies, making sure our neighbours are able to take advantage of our logistics and related services.

 

For example, Ethiopia has, over the last 15 years, experienced a high rate of growth, and needless to say, the more Ethiopia grows the more the Djibouti economy follows suit.

 

Djibouti’s GDP is linked specifically to the port and other logistical services, which in tandem is connected to the growth of the Ethiopian economy. This is why we are working with the Ethiopians on a long-term vision to ensure Djibouti remains stable, competitive and has access to international markets. This will ensure our relations with Ethiopia continue to flourish as it embarks on its industrialisation drive. One of the key points to their industrial development is that the whole process must be integrated, meaning competitive logistics must be in place, and this is where Djibouti will play a key role.

 

We are also planning a cross-border industrialisation programme, to add value to our exports. We need to create a cross-border duty-free zone to integrate Djibouti’s economy with Ethiopia’s and provide a gateway to other economies in the region of commercial interest, such as South Sudan.

 

 

 

Q: Internally there are some challenges to growth and investment in Djibouti, namely high energy costs and water stress issues. What initiatives does the ministry have in place to combat these problems?

 

A: These are two major concerns regarding Djibouti’s economic development, and we are actively seeking strategies to address them. The geothermal electricity generating programme is the number one priority of Djibouti’s government and our geothermal potential is acknowledged as one of the largest in the world. We plan to couple this potential with other renewable energy projects such as solar and wind energy. By tapping into these assets with the assistance of our development partners being led by the World Bank, we are confident of resolving our energy problems in the next three years and we may even be in a position to export energy. Already we have embarked on the first salt lake geothermal development plan.

 

We are also looking at solutions to our water supply constraints and have an EU desalination project and other public-private partnership programmes. We also bring water from Ethiopia for some areas of the south of Djibouti, and at the same time we are conducting our own research and development with highly skilled engineers. We anticipate that the challenge of water will, like our energy sector, be tackled successfully in less than three years.

 

 

 

Q: What message would you like to get across to our readers about Djibouti today and the country’s investment opportunities?

 

A: Djibouti certainly has the potential to become another Singapore, Hong Kong or Dubai and there are myriad investment opportunities here related to our unique geostrategic location. Equally importantly there are many untapped business sectors such as tourism. I believe we have the possibility of becoming one of the top marine tourism attractions in the world, if the requisite infrastructure and facilities are put in place. We welcome international investors to come and take advantage of these opportunities.

 

We are already working hard with our partners and neighbouring countries to create critical infrastructure such as roads, airports and dry ports to serve as a gateway not just to the rest of Africa but also to the Gulf region as a whole.

 

Another area of investment potential is telecommunications and our telecommunications ministry is inviting major international players to Djibouti to make use of the most advanced sub-sea fibre-optic cable facilities in Africa. This is just a snapshot of some of the opportunities available in Djibouti today, and there are many more!

[Abu-Salman]

Building A Red Sea Gateway For Africa

 

Having been in the shipping business for 30 years, mostly in the Port of Djibouti but also spending three years in Lagos, Nigeria, last year Aboubaker Omar Hadi returned to his country to head the country’s all-important ports and free zones authority. He talked to New African about his responsibilities and his vision.

 

Q: The ports represent the lifeblood of the Djibouti economy; can you outline the expansion projects that are being undertaken at the moment?

 

A: We are currently investing $4.4bn in our development projects, including expanding the capacity of our current ports and the airport extension programme. We have extensive experience in running ports successfully, both for oil and containers. Indeed, our container port is one of the biggest in the world and certainly the biggest in Africa.

 

We built these two ports very quickly, taking a total of 23 months from the start of the project to the first ship arriving at the port. We know how to build these ports: we have the right partners, and we also know what to look for in the selection of contractors to build our infrastructure.

 

 

Q: The DPFZA is heavily dependent upon external economies and other factors for its success – short and long term. How does the DPFZA prepare itself for some of the challenges that may affect its foreign clientele, and in turn affect the income of the port itself?

 

A: There are a lot of external factors that affect the profitability of the ports and our activities but to reduce external risks we are diversifying. We are not only working in partnership with Ethiopia, our main customer, but also working with South Sudan. That country’s foreign trade is now taking off and over the last few months’ transit traffic has been moving from Djibouti to South Sudan in increasing volumes.

 

In addition to this we are also receiving trans-shipment traffic – that is, shipments for the other coastal states in the region, not just for landlocked countries. This traffic constitutes 55% of our revenue, transiting to Red Sea and Indian Ocean ports and even all the way down to Durban, South Africa.

 

So, it is evident that we are using our strategic location on one of the most important and busiest sea routes in the world, and we believe that by targeting the port’s trans-shipment volume it can grow by 100% in the coming years. Currently, this amounts to three million containers a year, but we anticipate this to rise to six million and we intend to capture at least 50% of this market.

 

 

Q: The ports obviously have a linkage to other areas of Djibouti’s economy. Where do you see the synergies to further enhance the economy?

 

A: There are many other areas of the economy that can benefit from our efficient ports. The basic business of the ports is in handling goods. We see huge opportunities for our clients to manufacture in the Free Zones that are being established and then re-export their goods. The ports are the only hub that can efficiently handle this flow of huge quantities of goods.

 

 

Q: Another key component of the DPFZA’s continued success is the stability of the country and the security of the services provided. In what ways are you ensuring that both these will be maintained for the future?

 

A: The security and stability in our country is our main asset. We certainly have the security measures in place, and we also have very high productivity. In fact, that level of productivity is world-class, unmatched even outside Africa. Our cranes are currently handling 34 containers an hour. This represents a highly efficient service that reduces the turnaround time for ships. This productivity would not be possible without our staff. We have also sent 120 of our most gifted students to a maritime academy in India. They will become the future managers of the three ports we currently operate and the five others we are planning. There are of course other related marine businesses that require qualified personnel, and this annual training programme represents an investment in our future.

 

 

Q: Where do you see the potential for growth and partner projects for the DPFZA?

 

A: We expect trade growth beyond South Sudan. We can reach the other East African landlocked countries and the heart of the continent where much of Africa’s resources are located. These cannot be capitalised upon without the port, rail and road connections.

 

As development and peace come to the region, we will capitalise from the increased movement of traffic.

 

In addition, competition between ports is not only based on the tariffs. Some ports may be cheaper in terms of their tariffs but when you look at their productivity, clients will choose Djibouti, because the cost of other ports’ inefficiency is higher.

 

Another measure that would be hugely positive to ourselves and our partners in East Africa would be the creation of a customs treaty or agreement. That would greatly enhance harmonisation and the movement of goods. We currently have a customs agreement between Ethiopia and Djibouti, a system of single documentation, and that has proved very successful.

 

 

Q: Do you have a personal vision for the ports and what the next five years hold?

 

A: Well for our ports and transportation, we see this development as demand-driven. When there is a trade there is a need for ports and transportation. But a port cannot work in isolation, without the rail and road connections reaching deep into the heart of the continent and perhaps even extending from the Red Sea to the Atlantic. At the moment we cannot cross the continent and we must transport goods around Africa which is vastly more expensive. So the future ports we are going to make will be integral to Africa’s future growth and inter-trade development, to connect the one billion African population. This is where we need to have vision and commitment.

 

 

Facilitating Djibouti's FDI Flows

 

 

Q: Are there any specific sectors that you have been focused on?

 

A: The main areas that we have been responsible for assisting and promoting are the tourism, transport and logistics, fishing, energy as well as telecommunications and finance sectors. Eighty per cent of Djibouti’s GDP is based on services and the above-mentioned sectors are highly promising. Most of those sectors are still unexploited and our country welcomes all kinds of investments.

 

 

 

Q: You have clearly been very successful at securing increasing levels of FDI. What do you ascribe this to?

 

A: One particular achievement we are proud of is our one-stop shop that allows our client-investors to access a harmonised service. The one-stop investment office has now been open for over two years and has proved to be a great component of our services. The NIPA in partnership with different state representatives has also proactively promoted the Republic of Djibouti’s investment opportunities and business environment at international level.

 

 

 

All articles of the Special Report

[Abu-Salman]

Haramous residential area's boom (every set in a scheme is mandated to have its own mosque) and the older port circling the town centre:

 

 

 

 

 

Ar Rahma Orphanage Complex

 

[Mooge]

Djibouti may you prosper and do well for years to come.

 

way duushay.

[ElPunto]

When Djiboutians stop leaving Djibouti and claiming they're from Somalia - then this development will seem to be having an effect.

[MoonLight1]

Abu-Salman;859079 wrote:

Haramous residential area's boom (every block in a scheme is mandated to have its own mosque) and the older port circling the town centre:

 

 

 

 

 

Ar Rahma Orphanage Complex

 

Breath taking view, good architect and very well designed urban planning mashallah. good to see tiny Djibouti prosper.

 

Thanks for sharing Abusalman.

[raula]

beautiful indeed.

 

AbuS- cambaaburkii makasoo dheregte ciidaan

[Abu-Salman]

It seems Xamar back in the 80s was as well designed if not better in terms of urban planing from a relative familiar with the 3 cities;

this is one of the biggest challenge we now face in Hargeysa as the town in colonial times was utterly neglected and nothing was planned (let alone for a major city with booming car traffic).

 

No cambaabur since ages but I guess the new Turkish biweekly transit flight to Djibouti en route to Xamar will ease travel and trade to and between both cities; we are looking forward to holidays with friends etc down South .