Research and consulting in Djibouti
Country Overview:
Through years of extensive research and consulting, IOA has earned a data-based expertise about Djibouti. Our analysts have described the small, arid country as having one resource: its geographic position. It is a valuable resource, this location on the strait that separates the Red Sea and the Indian Ocean. China, some European countries and the US support Djibouti’s GDP with land rentals for military bases in the country, overlooking this strategic position. Djibouti’s port also owes its value to the country’s location and is an essential lifeline for landlocked Ethiopia.
Djibouti has further capitalised on its location by creating a Free Trade Zone where international traders can operate as they ship goods into and out of the country. However, a majority of the people live as they always have: as nomadic herders in the desert interior.
Key opportunities in Djibouti:
- Because of world shipping through the Red Sea, Djibouti is located at Africa’s most strategic spot
- The country is a Free Trade Zone and has attracted international traders
- Desert culture and unique attractions like Lake Assal represent tourism attractions awaiting development
Key concerns/risks in Djibouti:
- Djibouti’s foreign military bases and port are its only significant source of revenue
- IOA research has found that the highest export earner, chlorides, brings in only US$ 46 million annually
- The arid Horn of Africa is the African location most vulnerable to global warming
