Country Snapshot

Population (2019, millions)¹0.9 (974,000) 
Population Projections (2030, millions)¹1.1
Economically active population in agriculture (as % of Economically active population)12, 201993
CapitalDjibouti
Surface Area (km²)²23,200
Weather¹¹Hottest 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
Languages³Official: French and Arabic - Others: Somali and Afar
Main Religions³Main: Muslim - Others: Christian
Time⁴Eastern Africa Time (EAT) +0300 UTC
Driving Orientation⁵Right Side
Internet Country Code⁶.dj
Country Calling Code+253
Plug, Socket and Voltage⁷ Type C and E - 220V/50Hz
CurrencyFranc (DJF)
Exchange Rate (As of 27 January 2019, per USD)⁸177.72
GDP at Market Prices (2018, current, billions of USD)⁹1.965
GDP Growth (2018, annual %)⁹5.96
Average GDP Growth (2014-2018, annual %)⁹7.47
GDP per Capita, PPP (2017, current international $)⁹1,927 
Inflation, Consumer Prices (2018, annual %)⁹0.14
Average Inflation, Consumer Prices (2013-2017, annual %)⁹(0.32)
Total Reserves in Months of Imports (2017)⁹6.43

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

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

Population

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.

Labour

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, Male71.14
Labour Force, Total (number)425,274

Source: World Bank, World Development Indicators 2019.

Economy - Overview

GDP

20142015201620172018
GDP at Market Prices (current, billions of USD)1.4551.6331.7461.8441.965
GDP Growth (annual %)8.99.78.74.15.96

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Indicator20182019
Agriculture4.043.96
Manufacturing3.132.99
Industry26.1126.42
Services 88.8688.62
Construction15.9816.50
Electricity, gas and water6.586.52
Mining and quarrying0.420.41
Education0.000.00
Finance, real estate and business services7.557.54
Public administration and Defense22.3722.17
Health and Social Work0.000.00
Other services3.413.31
Transport, storage and communication33.5633.57
Wholesale and retail trade, hotels and restaurants21.9722.03

Source: AFDB Socio Economic Database.

Trade Profile

Import Partners (Imported Value, thousands, USD)

 20142015201620172018
World2,589,6831,743,8012,737,0911,585,8831,753,384
United States of America1,061,149662,55257,169586,757512,672
China73,058383,340411,934235,213205,292
Indonesia50181044,931420183,218
France111,20894,023156,051179,915138,061
Ethiopia69,97774,761109,289101,105107,338

Source: International Trade Center COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

 20142015201620172018
World6,175,37810,554,2327,065,30511,750,93618,990,587
South Africa15,711153,7294,102,8206,592,48310,084,468
China2,534,1684,796,528841,7521,894,8663,507,881
United Arab Emirates  321,953798,6891,343,352
Tanzania7421,130747,030405,7991,254,043
Zambia1,136,8441,703,815618,760691,5881,093,135

Source: International Trade Center COMTRADE Statistics.

Djibouti’s Top Import Products (USD ‘000)

ChapterDescription20142015201620172018
 All products       2,589,683        1,743,801        2,737,091        1,585,883        1,753,384 
88Aircraft, spacecraft, and parts thereof          677,293           211,155             19,563           533,094           296,156 
73Articles of iron or steel            27,026             76,701             65,665             45,809           255,885 
84Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof          200,621             81,761           141,421           114,974           220,750 
85Electrical 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 
27Mineral 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)

ChapterDescription20142015201620172018
 All products1,323,453    667,195     2,029,119         437,970         971,640 
87Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof        192,968           32,973         511,552           32,875         638,068 
27Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes        682,725           93,038           82,474           87,094           99,720 
85Electrical 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 
84Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof            3,057           11,271           74,087         130,790           84,186 
88Aircraft, spacecraft, and parts thereof        382,492         149,418         101,969           29,901           30,442 

Source: COMSTAT database

Investment Profile

FDI Inflows (millions of USD)

Year20142015201620172018
FDI Inflows 153124160165265

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

FDI Inward Stock (millions of USD)

Year20142015201620172018
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

Doing Business

Overall Doing Business Ranking

2020112/190
201999/190

Source: World Bank, Doing Business, 2020

Starting a Business

2020 Rank112/190
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

Paying Taxes

2020 Rank133/190
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 Rank147/190
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

Investment Regime

Legal Framework

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

Key guarantees in terms of investment protection include:

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

Investment Incentives

Minimum investment required: 

REGIM A : 

REGIM B:

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 :

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