Djibouti an open gate to comesa

UK-Djibouti

Trade & Investment Forum

London, May 8th 2013

CHAMBER OF COMMERCE OF DJIBOUTI

CHAMBER OF COMMERCE OF DJIBOUTI

Mr Said Omar Moussa

PRESIDENT CHAMBER OF COMMERCE OF DJIBOUTI

HONORARY CHAIRMAN OF COMESA BUSINESS COUNCIL

VICE PRESIDENT OF IGAD BUSINESS FORUM

Brief introduction

on the Republic of Djibouti

A DRIVING FORCE BEHIND THE DEVELOPMENT

AND THE PROMOTION OF PRIVATE SECTOR

Since

1907

CHAMBER OF COMMERCE OF DJIBOUTI

A priviledged position in the international

exchanges : Situated on the 2nd sea route in the world

sea route

in the world

Population

818.159 inhabitants

Languages : French, Arab, (officials)

Somali, Afar (nationals)

English is increasingly used, due to the

development of trade relations with the

countries of the region and the installation

of a U.S. military base (since 2003).

The economic context

Djibouti has opted for a liberal economy

as of 1949, by abolishing any control on the exchange and by

using the Djibouti Franc linked to the dollar as local currency.

1 $ US = 177.7 Franc DJ

Based on service activities connected with the country's

strategic location and status as a free trade zone

in East Africa.

Economy

Positive growth trend since 2004

GDP (Growth Domestic Product) : 5.1 % in 2012

GDP composition by sector :

Services : 81% | Industry : 16% | Agriculture : 3%

Imports in value : (USD Billion 2012) : 126 539

Imported Products : Food and Beverage, Hydrocarbons, Chemical

products, Plastics, Rubber and Articles, Machineries and Equipments,

Electrical Materials, Vehicules and transport equipments, Textiles

Exports in value (USD Billion 2012) : 22 999

Exported products : Livestock, Leather and Skin, Salt, Fish

External Trade

Investment

Salient features of the Investment Code

- Foreigners and nationals benefit the same advantages

- Freedom of investors to manage business and to repatriate profits

- Tax incentives and specific tax exemptions (home consumer tax,

income tax, property tax, registration duties, …)

- Guaranties of rights and freedoms.

Foreign Direct Invesment (% of GDP 2012): 21%

Local Private Sector

Major tertiary activities

Transport and Logistics

Banking and Insurance

Technologies of Information

and Communication (TIC)

General Trade

Services providers

Health Services

Total Area : 12.2 million sq. Km

GDP : US $ 450 billion (2011)

Increase in Average Annual GDP growth : 5.08% from 3.51% (2010)

Global trade for COMESA countries : Over US$ 244 BN (2010)

Intra-COMESA Trade : US 18.4 BN (2011)

Investment flows : US $ 21.6 BN (2010)

Total Imports Volumes : US $ 137 BN (2010) at 16%

Total Exports Volumes : US $ 107 BN (2010) at 26%

Common Market for Eastern and

Southern Africa - Region : More than 450 million people

Membership : 20 countries : Burundi, Comoros, DR Congo, Djibouti, Egypt,

Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles,

Sudan, South Sudan, Swaziland, Uganda, Zambia, Zimbabwe

Djibouti an open gate to the COMESA

The COMESA-EAC-SADC Tripartite

EAC

COMESA

SADC East African Community

Southern African Development Community

Angola,

Botswana,

Burundi,

Comoros,

Congo DR,

Djibouti,

Egypt,

Eritrea,

Ethiopia,

Kenya,

Lesotho,

Libya,

Madagascar,

Malawi,

Mauritius,

Mozambique,

Namibia,

Rwanda,

Seychelles,

South Africa,

Sudan,

Southern

Sudan,

Swaziland,

Tanzania,

Uganda,

Zambia, and

Zimbabwe

The New Region

27 countries

Over 581 million Inhabitants

GDP of plus 875 billion USD$

58% of the entire GDP of Africa as a continent

THE BIGGEST ECONOMIC REGIONAL

GROUPING IN AFRICA

The New Region in figures

Areas of Investment in the region Infrastructure

Agro-industry and agro-processing

Real Estate Development

New Technology

Tourism

Member of : WTO, IGAD, Arab League, African Union,

ACP/UE, United Nationals and beneficiary country under AGOA

Private sector partnership network : Comesa Business

Council (CBC), IGAD Business Council, Pan African Chamber

of Commerce, Francophone Chamber of Commerce, Islamic

Chamber of Commerce and Industry (ICCI) ...

And many bilateral partnerships

Republic of Djibouti

Worldwide Partnership

1- Transport and logistics activities :

Key sector of Djibouti’s Economy

20 % of GDP

Harbour activities income : 20-25 % public income

10 % of working population

Growth opportunity of the sector : Perspective of strong and sustainable economic

growth in Ethiopia (~8% a year)

Perspective of important commercial partnership with the

recently independent South Sudan

Perspective of development of new connected

activities: truckway and connected activities

(mechanic), road building and management, ….

Regional Economic Integration with the COMESA

Investment opportunities

2- Tourism : Great potential but underexploited

Geological sites, which are unique in their kinds

Marine fauna among the richest to the world

Cultural diversity due to cosmopolitan communities

Growth opportunity of the sector

Hotel infrastructures in development

An airport served by 6 international airlines

Possibility of combined tourism with Region countries (Ethiopia, Kenya, Yemen)

Goal in 2030: Djibouti wish to welcome more than 500.000 tourists per year

Investment opportunities

3- Renewable energies :

Key sector For Djibouti’s Economy development

A solar energy potential of 2240 Kwh / sqm / year

A geothermal potential around 170 Mwh / year

A wind potential around an annual average of 9.2 m/s

Growth opportunity of the sector :

Huge public-private projects underdevelopment

Investment opportunities

4- Fishing and halieutics resources:

Plentiful resources but under-exploited

An annual production of 1500 tons (2011)

A potential of fishing estimated at 48 000 tons / year

Relatively low capital inflow for the small-scale

fishing but with good profitability

Growth opportunity of the sector:

Possibility of exports to the sub-region countries

(Ethiopia and South Sudan)

Possibility of exports to the UE-ACP countries

Investment opportunities

Because Djibouti has a strategic geographical

location in the region

Because it is situated on the 2nd sea route in the world

Because its political stability is an additional asset

Because foreigners and nationals

benefit the same advantages

Because its currency linked to the

dollar is freely convertible

Because Djibouti is the main corridor of the region,

thanks to its port equipments

Because its telecommunication system

ranks among the best in Africa

Because Djibouti is an open gate to a market

of more than 450 million inhabitants, the COMESA.

Because its financial system which is free of

any kind of exchange control provides opportunity

to a full freedom of money transfer

Tel : (+253) 21 35 10 70

Fax : (+253) 21 35 00 96

Email Address : [email protected]

Website : www.ccd.dj

1907

2013

CHAMBER OF COMMERCE OF DJIBOUTI

Thank you

for your kind attention !