Djibouti

10 Mar 2015

Economy

Djibouti’s economy is based on service activities connected with the country's strategic location and status as a free trade zone in the Horn of Africa. Two-thirds of Djibouti's inhabitants live in the capital city; the remainder are mostly nomadic herders. Djibouti provides services as both a transit port for the region and an international transhipment and refuelling centre. Imports and exports from landlocked neighbour Ethiopia represent 70% of port activity at Djibouti's container terminal. Djibouti has few natural resources and little industry. The nation is, therefore, heavily dependent on foreign assistance to help support its balance of payments and to finance development projects.
The Djiboutian economy has benefited from huge investment in the transport sector namely; port investment, construction and banking sector during the last years. Foreign direct investment (FDI) as well has registered a positive evolution in the last ten years.

With the aim of strengthening Djibouti's position as a hub for trade, logistics and related services, as well as a provider of financial services, several road corridors were opened or renovated in 2010.
Nevertheless, the economy remains little diversified and highly dependent on port operations in the tertiary sector. This accounts for 76% of GDP, while the primary sector contributes a mere 3.9%. The country depends almost entirely on imports for its food supply. Domestic agricultural production covers only 10% of the country's food needs.

Djibouti is at the crossroads of major sea routes for trading oil and other goods, and wants to become a hub for commercial, logistical and financial services for the Gulf of Aden countries. The government has launched a 4.3 billion US dollar (USD) investment programme, and in 2012, funding was obtained to build new port facilities for salt and potassium exports.
The government is also drafting a long-term development strategy called Vision 2035, and a study is being done of which leading sectors could diversify the sources of national growth and create jobs.

Essential Information

Area: 23,200 sq km

Population: 792,198 (2013 est.)

Capital: Djibouti

Principal Towns:Dikhil, Tadjoura, Obock

Languages: Arabic and French are the official languages. Afar, Amharic and Somali are also widely spoken.

Gross Domestic Product: $1.4 billion (2012 est.)

GDP per capita: $1,767 (2012 est.)

GDP per capita (PPP): $2,700 (2012 est.)

Gross Official Reserves: $0.2 billion (2012 est).

Climate: Very hot and arid from April to August with average temperatures of 32°C but reaching 45°C. October through March is slightly cooler with occasional light rain.

Currency: 1.00 USD ≈ 179.7 Djiboutian Franc (DJF), 1.00 DJF = 0.00556 USD.

Visa requirements:

Visas are required by all visitors, except French nationals, on short stay visits. Ten-day visas are available on arrival for US and EU nationals - an onward ticket is also required.

Djibouti National Day, 27 June.