Population (2019, millions)¹	0.9 (974,000)
Population Projections (2030, millions)¹	1.1
Economically active population in agriculture (as % of Economically active population)12, 2019	93
Capital	Djibouti
Surface Area (km²)²	23,200
Weather¹¹	Hottest months, June-August, 31-41°C; coldest month, January, 23-29°C; driest month, June, 1 mm average rainfall; wettest month, March, 25 mm average rainfall
Languages³	Official: French and Arabic - Others: Somali and Afar
Main Religions³	Main: Muslim - Others: Christian
Time⁴	Eastern Africa Time (EAT) +0300 UTC
Driving Orientation⁵	Right Side
Internet Country Code⁶	.dj
Country Calling Code	+253
Plug, Socket and Voltage⁷	Type C and E - 220V/50Hz
Currency	Franc (DJF)
Exchange Rate (As of 27 January 2019, per USD)⁸	177.72
GDP at Market Prices (2018, current, billions of USD)⁹	1.965
GDP Growth (2018, annual %)⁹	5.96
Average GDP Growth (2014-2018, annual %)⁹	7.47
GDP per Capita, PPP (2017, current international $)⁹	1,927
Inflation, Consumer Prices (2018, annual %)⁹	0.14
Average Inflation, Consumer Prices (2013-2017, annual %)⁹	(0.32)
Total Reserves in Months of Imports (2017)⁹	6.43

Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, "Worldwide Driving Orientation by Country".
⁶Wikipedia, "List of Internet top-level domains"; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Banque Centrale de Djibouti.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
12AFDB Socio Economic Database

Reasons to Invest in Djibouti

• Djibouti is located on the 2nd shipping route of the world, where 60% of world traffic transits 
• Djibouti is strategically positioned in the region, to serve as a hub for landlocked countries 
• Djibouti enjoys a political stability 
• Nationals and foreigners alike enjoy the same right 
• Djibouti’s currency is pegged to the US dollar and is freely convertible, with a weak inflation rate 
• Djibouti has a financial system, free of exchange control, and which allows totally free currency transfer 
• Djibouti’s economy is development oriented and in full swing (such as major infrastructure projects) 
• Djibouti’s telecom system ranks among the best in Africa, with station of SEA ME WE and EIG sub-marine fibre cables 
• Investment operations in the country are eligible to funding and insurance coverage from regional and international financial institutions 
• Djibouti is a natural gateway to a market of over 400 million inhabitants 

Source: Djibouti National Investment Promotion Agency – NIPA Online Portal. 

Population Projections (millions)

Population (2019)	0.9
Population Projections (2030)	1.1

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Population Projections (2019)	77.9
Percentage of Population Residing in Urban Areas (2030)	79.9

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Youth Literacy Rate, Population 15-24 Years, Both Sexes	73.23
Youth Literacy Rate, Population 15-24 Years, Female	66.05
Youth Literacy Rate, Population 15-24 Years, Male	80.73

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Expenditure on Education (2010, %)

Government Expenditure on Education as % of GDP	4.49
Education Expenditure as % of Total Government Expenditure	12.32

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)

Unemployment, Total	11.12
Unemployment, Female	12.02
Unemployment, Male	10.42

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)

Labour Force Participation Rate, Total	62.97
Labour Force Participation Rate, Female	54.81
Labour Force Participation Rate, Male	71.14
Labour Force, Total (number)	425,274

Source: World Bank, World Development Indicators 2019.

GDP

	2014	2015	2016	2017	2018
GDP at Market Prices (current, billions of USD)	1.455	1.633	1.746	1.844	1.965
GDP Growth (annual %)	8.9	9.7	8.7	4.1	5.96

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Indicator	2018	2019
Agriculture	4.04	3.96
Manufacturing	3.13	2.99
Industry	26.11	26.42
Services	88.86	88.62
Construction	15.98	16.50
Electricity, gas and water	6.58	6.52
Mining and quarrying	0.42	0.41
Education	0.00	0.00
Finance, real estate and business services	7.55	7.54
Public administration and Defense	22.37	22.17
Health and Social Work	0.00	0.00
Other services	3.41	3.31
Transport, storage and communication	33.56	33.57
Wholesale and retail trade, hotels and restaurants	21.97	22.03

Source: AFDB Socio Economic Database.

Import Partners (Imported Value, thousands, USD)

	2014	2015	2016	2017	2018
World	2,589,683	1,743,801	2,737,091	1,585,883	1,753,384
United States of America	1,061,149	662,552	57,169	586,757	512,672
China	73,058	383,340	411,934	235,213	205,292
Indonesia	501	810	44,931	420	183,218
France	111,208	94,023	156,051	179,915	138,061
Ethiopia	69,977	74,761	109,289	101,105	107,338

Source: International Trade Center COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

	2014	2015	2016	2017	2018
World	6,175,378	10,554,232	7,065,305	11,750,936	18,990,587
South Africa	15,711	153,729	4,102,820	6,592,483	10,084,468
China	2,534,168	4,796,528	841,752	1,894,866	3,507,881
United Arab Emirates			321,953	798,689	1,343,352
Tanzania	742	1,130	747,030	405,799	1,254,043
Zambia	1,136,844	1,703,815	618,760	691,588	1,093,135

Source: International Trade Center COMTRADE Statistics.

Djibouti’s Top Import Products (USD ‘000)

Chapter	Description	2014	2015	2016	2017	2018
	All products	2,589,683	1,743,801	2,737,091	1,585,883	1,753,384
88	Aircraft, spacecraft, and parts thereof	677,293	211,155	19,563	533,094	296,156
73	Articles of iron or steel	27,026	76,701	65,665	45,809	255,885
84	Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	200,621	81,761	141,421	114,974	220,750
85	Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	144,410	456,712	123,098	137,199	144,277
27	Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	168,240	162,474	246,363	120,882	139,423

Source: COMSTAT database

Djibouti’s Top Export Products (USD ‘000)

Chapter	Description	2014	2015	2016	2017	2018
	All products	1,323,453	667,195	2,029,119	437,970	971,640
87	Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	192,968	32,973	511,552	32,875	638,068
27	Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	682,725	93,038	82,474	87,094	99,720
85	Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8,057	91,732	205,833	101,084	84,446
84	Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	3,057	11,271	74,087	130,790	84,186
88	Aircraft, spacecraft, and parts thereof	382,492	149,418	101,969	29,901	30,442

Source: COMSTAT database

FDI Inflows (millions of USD)

Year	2014	2015	2016	2017	2018
FDI Inflows	153	124	160	165	265

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inward Stock (millions of USD)

Year	2014	2015	2016	2017	2018
FDI Inward Stock	1,505	1,629	1,789	1,954	2,219

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inflows Main Source Countries (in terms of number of projects)

UAE, United States, China, France, South Africa, Tanzania, Bahrain, Canada, Denmark, and Germany. 

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Sectors (in terms of number of projects)

Business Services, Transportation, Financial Services, Warehousing & Storage, Renewable energy, Communications, Real Estate, Coal, Oil and Natural Gas, Hotels & Tourism, and Chemicals. 

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Companies (in terms of number of projects)

Exim Bank (Tanzania), Black Rhino, AAE-1 Consortium, Ayla Hotels and Resorts, United Trademark and Patent Services, Silk Road International Bank (SIB), Fotowatio Renewable Ventures (FRV), China Merchants Group, Stereau, and Industrial Maintenance International. 

Source: Financial Times, fDi Markets, 2018

Overall Doing Business Ranking

2020	112/190
2019	99/190

Source: World Bank, Doing Business, 2020

Starting a Business

2020 Rank	112/190
Procedures (number)	6
Time (days)	14
Cost (% of income per capita*)	39.7
Paid-in Minimum Capital (% of income per capita*)	0.0

*GNI per capita used: USD 2,880
Source: World Bank, Doing Business, 2020

Paying Taxes

2020 Rank	133/190
Payments (number per year)	35
Time (hours per year)	76
Total Tax Rate (% of profit)	37.9
Profit Tax (% of profit)	17.7
Labor Tax and Contributions (% of profit)	17.7
Other Taxes (% of profit)	2.6

Source: World Bank, Doing Business, 2020

Trading Across Borders

2020 Rank	147/190
Time to Export: Border Compliance (hours)	72
Cost to Export: Border Compliance (USD)	605
Time to Export: Documentary Compliance (hours)	60
Cost to Export: Documentary Compliance (USD)	95
Time to Import: Border Compliance (hours)	118
Cost to Import: Border Compliance (USD)	1055
Time to Import: Documentary Compliance (hours)	50
Cost to Import: Documentary Compliance (USD)	100

Assumptions:
* It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
* It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
* A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
* Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
* If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
* The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
* Time is measured in hours, and 1 day is 24 hours.
* Costs do not include tariffs.
Source: World Bank, Doing Business, 2020

Legal Framework

Investment Code – LAW N°58/AN/94/3-rd.

Key guarantees in terms of investment protection include:

• Protection against expropriation without fair compensation for damages;
• No restriction on benefits repatriation;
• 100 % repatriation of capital and profits.

Source: COMESA Regional Investment Agency, Investors Guide to Doing Business in Djibouti, NIPA.  

Investment Incentives

Minimum investment required: 

• Minimum investment amount : 5.000.000 DJFj (~ 28 000 US$) to benefit from the regim A.
  Minimum investment amount : 50.000.000 DJFj ( ~ 281 000 US$) to benefit from the regim B.

REGIM A : 

• Exemption from domestic consumption tax (TIC) on the materials and equipment necessary for the realization of the investment program as well as imported raw materials and those used effectively during the first three years by the approved company 

REGIM B:

• Exemption from land tax for construction of buildings for a period of 7 years;
• Exemption from tax on business profits resulting from the approved activities, subject to a maximum of seven years; • Exemption from domestic consumption tax for raw materials imported and used in the first years;
• Authorized investments pursuant to provisions of Plan B may be exempt from the tax on building permits 

Free Zone 

Although the term Free Zone only applied to the port, Djibouti now levies customs duties on most commodities. The 42-acre Djibouti Free Zone has been operational since 2004 and can house up to 100 companies. In July 2012, the government approved a new 57 hectares free zone (Jabanaas Free Zone) just outside of the capital. 

Conditions: the company has to export at least 80% of its production. The benefits of this regime remain valid for a period of 25 years and can be renewed 

Type of benefits :

• Exemption from taxes, including income tax: The companies and operators individual operating in free zones are not subject to any direct or indirect tax or taxation including income tax, except in respect of VAT. For VAT purpose the entities of the free zone are subject to the provisions of the General Code taxes. 
  
  
• Goods imported or manufactured in the free zone are exempt from all customs and tax liability, unless they are imported into the customs territory of the Republic of Djibouti. Thus, the flow in the local market of goods from the free zone is subject to the payment of duties and taxes due on importation. 
• This tax exemption is granted for a period of up to fifty years, which run from the date of issuance of the free zone license. 

Source: Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018