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Djibouti is currently undergoing an infrastructure expansion that will require the mobilisation of over $14bn, a large component of which will be allocated to the establishment of new ports and terminals across the country’s coast.

Serving as Ethiopia’s connection to maritime shipping, Djibouti’s cargo sector has seen an increase in traffic related to the neighbouring country’s expanding economy. This critical transport connection has been maintained through a highway link that connects Djibouti and its port all the way into Ethiopia and its capital Addis Ababa. Although...

Djibouti’s banking sector, which was a duopoly until as recently as 2006, has seen a wave of development in recent years, and the scope for further growth is significant. Recent years have seen lending rise exponentially as new players have entered an increasingly well regulated market: credit allocated to the private sector grew from 20% of...

Despite its limited size, with only two companies currently in operation – Assurance AMERGA and GXA Insurance – the Djiboutian insurance sector has enjoyed relatively steady growth, particularly over the past decade and a half. A number of reforms in 2000, followed by the more recent rise in capital investment and foreign investment in...

On the back of a rise in both capital investment and transport activity, Djibouti’s banking sector has seen considerable expansion in recent years. The most visible change has been the increase in the number of players in the market, which has led to an uptick in competitiveness and the expansion of products and services targeting local...

The goal of diversifying Djibouti’s economy will depend on raising the contribution of several sectors to the country’s GDP. Among the government’s priorities are the expansion of agriculture and fishing activities. The contribution of agriculture to the national GDP is expected to increase from 3.7% in 2012 to 4.1% in 2022 and 5% of GDP by 2035, according to government plans...