Diversity drive: Page 24

The economy has grown rapidly in recent years upon the back of rising foreign direct investment and the country’s increasingly important role as a centre for regional connectivity. GDP is expected to increase by 6.5% in 2016 and remain steady at an average annual growth rate of 7% between 2017 and 2019. Already established as a global hub, the trade in goods and services accounts for almost 94% of Djibouti’s GDP.

7 10 12 16 18 19 20 21 22 24 31 32 33 Djibouti in figures Natural advantages: The country’s location is key to its prosperity Interview: President Ismaïl Omar Guelleh Looking ahead: The young nation is developing infrastructure to reach its goal of becoming a key trading hub Viewpoint: John Kerry, US Secretary of State A central role: Foreign policy targets developing ties with neighbours and global economic powers Mutual benefits: Building on the bilateral relationship with Ethiopia will play a key role in securing future prosperity Viewpoint: Mahamoud Ali Youssouf, Minister of Foreign Affairs Interview: Carlos Lopes, Executive Secretary, UN Economic Commission for Africa Diversity drive: Rising investment levels and improved policies are helping move the economy away from the public sector and transport Interview: Ilyas Moussa Dawaleh, Minister of Economy and Finance Interview: Mahdi Darrar Obsieh, Director, Djiboutian Investment Promotion Agency Room to trade: New free trade areas set to boost economic growth Djibouti’s transport sector is currently seeing $14bn worth of construction and development. The revitalisation of the Djibouti-Ethiopian railway lines, two new international airports, six major port terminal projects and the establishment of several new free trade zones are aimed at securing Djibouti’s strategic position as a central stopping point on major trade routes between Asia, Africa and Europe.

34 38 40 42 44 46 52 54 55 57 58 59 63 70 71 75 77 78 Page 63 Creating connections: New infrastructure and better regulation to improve trade conditions Dialogue: Hikmat Daoud, Director, National Confederation of Djiboutian Employers; and Djama Aouled, Chairman, Federation of Djiboutian Corporations Balancing act: Rapid expansion must be tempered with prudent decision making Living off land and sea: Plans to develop agriculture and fishing to promote food and employment security Interview: Youssef Dawaleh, President, Chamber of Commerce of Djibouti Room to grow: Multiple competitors and improving regulation are helping to drive the sector forward Keeping the faith: Islamic finance could help increase banking penetration Interview: Ahmed Osman, Governor, Central Bank of Djibouti Risk and reward: The country’s insurance industry wants a bigger slice of the pie Interview: Jean-Pierre Gianotti, Head, Bankers Association of Djibouti Interview: Christian Boucher, CEO, GXA Insurance Lending opportunities: Increased competition leads to growing participation Connecting the country: New transport infrastructure positions Djibouti for trade Interview: Moussa Ahmed Hassan, Minister of Equipment and Transport Good neighbours: A jump in Ethiopia-bound trade increases traffic and prompts reforms Docking space: Investment in new port infrastructure continues Interview: Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority Interview: Mario Fulgoni, CEO, Air Djibouti 81 89 91 92 94 99 100 101 104 111 115 Djibouti has embarked on several mega-infrastructure projects, which are driving local energy demand. Imports of hydrocarbons have risen and almost 65% of Djibouti’s electricity is supplied through a 150-MW interconnection line from neighbouring Ethiopia.

However, local power production now accounts for around 35% of the energy supply.

Page 81 Fuel for growth: Diversifying the energy mix with an eye to expansion is central Untapped potential: Authorities seek to exploit renewable energy to boost self-sufficiency and competitiveness Interview: Gregory Meneses, Managing Director, Black Rhino Interview: Houssein Ahmed Houssein, General Manager, Horizon Djibouti Terminals Limited Expand and upgrade: Investing in key segments and removing bottlenecks to growth promise to expand industry’s role Interview: Ahmed Osman Guelleh, CEO, GSK Group Interview: Abdoulkarim Al Gamil, Chairman, Al-Gamil Group Retail rethink: With the entrance of larger, formal players, competition in the foodstuff retail market is increasing Emerging gateway: The country seeks to leverage its geostrategic location to develop a connectivity hub Interview: Mohamed Assoweh Bouh, Director-General, Djibouti Telecom Building blocks: Countrywide infrastructure development expands construction activities 120 121 122 126 128 133 134 136 142 144 150 151 152 Necessary inputs: Securing sufficient amounts of locally produced quality cement can be challenging Interview: Amina Abdi Aden, Secretary of State for Housing Structuring the market: Reforms in legislation should see an increase in affordable housing Building a roof: Increased financing incentives in the housing market On the radar: The country’s immense potential is getting more attention Interview: Bertrand Lafrance, Founder, Discover and Aid Nature Wildlife Reserve Chipping in: Private sector participation will be key to funding development JC Colas-Groupe CHD The bottom line: A comprehensive guide to the country’s tax laws Viewpoint: Felix Emok N’Dolo, Managing Director, JC Colas-Groupe CHD Cabinet Guerinot Stepping up: examining current legislation Hotel listings: A place to stay Telephone listings: Numbers for ministries, banks, hospitals, tax and legal services Facts for visitors: Useful information Consistent macroeconomic stability and an improved business climate are attracting rising levels of investment, which in turn are positively impacting the construction sector. Urban renovation projects in the cities are improving the housing stock, while large-scale transport infrastructure projects aim to better position the country as a hub.

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