A new report by the Oxford Business Group (OBG) has highlighted Djibouti’s plans to foster stronger trade ties with partners across the continent, including Nigeria, as a means of encouraging economic integration and enhanced connectivity between eastern and western Africa.
The Report: Djibouti 2016 looked in detail at the country’s strategy for growth, which includes carving a niche as a regional logistical platform. Port expansion and developing an air cargo business that could serve Nigeria and other African countries are among the projects considered.
The publication also explored Djibouti’s drive to leverage its strategically advantageous position on one of the world’ busiest shipping lanes by boosting trading activity with both landlocked East-African countries and other international players farther afield.
The Report: Djibouti 2016, outlined the country’s growth story, which had been fuelled by rising foreign direct investment (FDI) on the back of an improved investment climate. It looks, in particular, at the young nation’s major infrastructure drive, which includes $14 billion worth of construction and development across the transport sector.
The OBG’s first publication on Djibouti represented an expansion for the firm in its regional operations.
“It was launched on March at the Djibouti Palace Kempinski Hotel in the presence of leading representatives, VIP guests and members of the media. Keynote speakers included the President of the Republic of Djibouti Ismail Omar Guelleh, the Minister of Economy and Finance Ilyas Moussa Dawaleh and the Governor of the Central Bank of Djibouti Ahmed Ali Osman,” it added.
OBG’s CEO and Editor-in-Chief, Andrew Jeffreys, said research undertaken by the Group’s team showed that rising levels of foreign investment were producing a positive impact across the economy.
“Djibouti’s macroeconomic stability and enhanced business environment have helped to make it an attractive destination for investors, with positive ripple effects evident in key sectors, such as construction,” he said.
“Our first-time report on Djibouti indicates an economy in the midst of countrywide infrastructural activity which is also making strides in developing ties with neighbours and global economic powers for future prosperity.”
OBG’s Managing Editor for Africa Robert Tashima, added that while several economies were looking to establish themselves as a gateway to fast-growing African markets, Djibouti had more reasons than most to lay claim to the label.
“The country benefits from a number of competitive advantages, including well-developed infrastructure, efficient clearance procedures and a fortuitous location,” he said.
“While there are certainly challenges, our report on Djibouti reaffirms that the country’s long-term outlook is broadly encouraging.”