WT/TPR/S/430 /Rev.1  
21 April 2023  
(23-2844) Page: 1/69 
Trade Policy Review Body   
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
DJIBOUTI  
Revision  
This report, prepared for the third Trade Policy Review of Djibouti, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Djibouti on its trade policies and practices.  
 
Any technical questions arisin g from this report may be addressed to Jacques Degbelo 
(tel.: 022 739 5583), Pierre Latrille (tel.: 022 739 5266), and Michael Kolie (tel.: 022 739 5931).  
 
Document WT/TPR/G/430 /Rev.1  contains the policy statement submitted by Djibouti.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in  French.  
  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  TABLE OF CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  6 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  10 
1.1   Main Features of the Economy  ................................ ................................ ....................  10 
1.2   Recent Economic Developments ................................ ................................ ..................  12 
1.3   Developments in Trade and Investment  ................................ ................................ ....... 16 
1.3.1   Trade in merchandise and services  ................................ ................................ ...........  16 
1.3.2   Trends and patterns in FDI  ................................ ................................ ......................  17 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  19 
2.1   General framework  ................................ ................................ ................................ ... 19 
2.2   Trade policy formulation and objectives  ................................ ................................ ....... 20 
2.3   Trade agreements and arrangements  ................................ ................................ ..........  21 
2.3.1   WTO ................................ ................................ ................................ ....................  21 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 22 
2.3.2.1    Common Market for Eastern and Southern Africa (COMESA)  ................................ ...... 22 
2.3.2.2    Tripartite Free Trade Area (TFTA)  ................................ ................................ ..........  23 
2.3.2.3    African Continental Free Trade Area (AfCFTA)  ................................ ..........................  23 
2.3.2.4    Intergovernmental Authority on Development (IGAD)  ................................ ..............  23 
2.3.3   Other agreements and arrangements  ................................ ................................ ........  23 
2.4   Investment Regime  ................................ ................................ ................................ .. 23 
3   TRADE POLICY AND PRACTICES BY MEASURE  ................................ ...........................  28 
3.1   Measures directly affecting imports  ................................ ................................ .............  28 
3.1.1   Customs procedures, valuation and requirements  ................................ .......................  28 
3.1.2   Rules of origin  ................................ ................................ ................................ ....... 29 
3.1.3   Tariffs  ................................ ................................ ................................ ..................  29 
3.1.3.1    Internal consumption tax (TIC) as an applied MFN tariff  ................................ ............  29 
3.1.3.2    Bound duties  ................................ ................................ ................................ ...... 32 
3.1.4   Other charges affecting imports  ................................ ................................ ...............  32 
3.1.4.1    VAT ................................ ................................ ................................ ..................  32 
3.1.4.2    Excise duty  ................................ ................................ ................................ ........  32 
3.1.4.3    Other internal taxes  ................................ ................................ ............................  33 
3.1.5   Tariff preferences  ................................ ................................ ................................ .. 33 
3.1.6   Duty and tax exemptions  ................................ ................................ ........................  33 
3.1.7   Import prohibitions, restrictions and licensing  ................................ ............................  34 
3.1.8   Anti-dumping, countervailing, and safeguard measures  ................................ ...............  34 
3.2   Measures directly affecting exports  ................................ ................................ .............  34 
3.2.1   Customs procedures and requirements  ................................ ................................ ..... 34 
3.2.2   Taxes, charges and levies  ................................ ................................ .......................  35 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ............................  35 WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  3.2.4   Export promotion, finance, insurance and guarantees  ................................ .................  35 
3.2.5   Free zones  ................................ ................................ ................................ ............  35 
3.3   Measures affecting production and trade  ................................ ................................ ...... 36 
3.3.1   Incentives  ................................ ................................ ................................ ............  36 
3.3.2   Standards and other technical requirements  ................................ ..............................  36 
3.3.3   Sanitary and phytosanitary requirements  ................................ ................................ .. 37 
3.3.4   Competition policy and price controls  ................................ ................................ ........  38 
3.3.4.1    Competition policy  ................................ ................................ ..............................  38 
3.3.4.2    Price regulation and controls  ................................ ................................ .................  39 
3.3.5   State trading, state -owned enterprises, and privatization  ................................ .............  39 
3.3.6   Government procurement  ................................ ................................ .......................  41 
3.3.7   Intellectual property rights  ................................ ................................ ......................  42 
3.3.7.1    Sanctions  ................................ ................................ ................................ ...........  44 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  45 
4.1   Agriculture, forestry and fisheries  ................................ ................................ ...............  45 
4.1.1   Crop production  ................................ ................................ ................................ ..... 45 
4.1.2   Livestock breeding  ................................ ................................ ................................ . 45 
4.1.3   Forestry  ................................ ................................ ................................ ...............  46 
4.1.4   Fishing  ................................ ................................ ................................ .................  46 
4.2   Mining  and energy  ................................ ................................ ................................ .... 49 
4.2.1   Mining  ................................ ................................ ................................ ..................  49 
4.2.2   Energy  ................................ ................................ ................................ .................  49 
4.3   Manufacturing  ................................ ................................ ................................ ..........  51 
4.4   Services  ................................ ................................ ................................ ..................  52 
4.4.1   Telecommunications services  ................................ ................................ ...................  52 
4.4.2   Financial services  ................................ ................................ ................................ ... 54 
4.4.2.1    Banks  ................................ ................................ ................................ ................  54 
4.4.2.2    Insurance  ................................ ................................ ................................ ..........  57 
4.4.2.3    Securities and commodities trading services  ................................ ...........................  58 
4.4.3   Transport services  ................................ ................................ ................................ . 58 
4.4.3.1    Port services  ................................ ................................ ................................ ...... 58 
4.4.3.2    Maritime transport services  ................................ ................................ ..................  60 
4.4.3.3    Road transport services  ................................ ................................ .......................  62 
4.4.3.4    Rail transport services  ................................ ................................ .........................  62 
4.4.3.5    Air transport services  ................................ ................................ ...........................  63 
4.5   Tourism services  ................................ ................................ ................................ ...... 64 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 66 
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  CHARTS  
 
Chart 1.1 Structure of merchandise imports, 2016 and 2020  ................................ ..................  17 
Chart 3.1 Breakdown of duties (TIC), 2022  ................................ ................................ ..........  31 
Chart 3.2 Escalation of TIC rates, 2022  ................................ ................................ ...............  31 
Chart 4.1 Liner shipping connectivity index, 2006 -22 (Q1)  ................................ .....................  61 
Chart 4.2 Bilateral connectivity index, top 10 partners in 2020  ................................ ...............  61 
Chart 4.3 Passenger traffic by airline, 2017 and 2020 ................................ ............................  64 
Chart 4.4 Cargo traffic (excluding post) by airline, 2017 and 2020  ................................ ..........  64 
 
TABLES  
 
Table 1.1 Main economic indicators, 2013 –20 ................................ ................................ ...... 10 
Table 1.2 Financial transactions by the State, 2013 -20 ................................ ..........................  13 
Table 1.3 Balance of payments, 2013 -20 ................................ ................................ .............  15 
Table 1.4 Foreign direct investment (FDI) by sector and origin , 2014 -19 ................................ .. 18 
Table 3.1 Brief analysis of the TIC, 2022  ................................ ................................ .............  30 
Table 3.2 Excise duty rates applied in 2013 and 2022  ................................ ...........................  32 
Table 3.3 Tax exemptions under the Investment Code  ................................ ..........................  36 
Table 3.4 State -owned enterprises engaged in commercial activities  ................................ ....... 40 
Table 3.5 Statistics on approved trade marks, patents and industrial designs, 2014 -20 ...............  43 
Table 4.1 Agricultural production, acreage and number of farms, 2016 -20 ...............................  45 
Table 4.2 Meat consumption by animal species, 2016 -20 ................................ .......................  46 
Table 4.3 Livestock exports by animal species, 2016 -20 ................................ ........................  46 
Table 4.4 Fish eries production, 2016 -21 ................................ ................................ ..............  47 
Table 4.5 Import of petroleum products by value (DJF  2016-20) ................................ .............  50 
Table 4.6 Import of petroleum products by volume (litres, 2016 -20) ................................ ....... 50 
Table 4.7 Electricity production and consumption 2016 -20 ................................ .....................  50 
Table 4.8 Mobile telephony, fixed -line telephony, telex and internet, 2016 -20 ...........................  53 
Table 4.9 Movement s of vessels by port and terminal, 2017 -20 ................................ ..............  58 
Table 4.10 Main features of Djibouti's ports and terminals  ................................ .....................  59 
Table 4.11 Traffic by port in 2021  ................................ ................................ ......................  60 
Table 4.12 Traffic by type and by port, 2018 -20 ................................ ................................ ... 60 
Table 4.13 Carrying capacity by type of ship ................................ ................................ ........  62 
Table 4.14 Road traffic in the Djibouti -Ethiopia international corridor, 2016 -20 .........................  62 
Table 4.15 Registered road transport vehicles, 2016 -20 ................................ ........................  62 
Table 4.16 Passenger and cargo air traffic, 2016 -20 (Units: passengers, number; cargo)  ...........  63 
Table 4.17 Hotel visits, 2016 -20 ................................ ................................ ........................  65 
Table 4.18 Size and performance of h otel accommodation, 2021  ................................ ............  65 
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  APPENDIX TABLES  
 
Table A1. 1 Imports by HS section and main products, 2016 -20 ................................ .............  66 
Table A1. 2 Imports by trading partner, 2016 -20 ................................ ................................ .. 68 
Table A2. 1 Criteria and benefits under the Investment Code, 2021 ................................ .........  69 
 
  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  SUMMARY  
1. Located in the Horn of Africa, Djibouti is a least developed country (LDC) and has been 
classified by the World Bank as a lower -middle -income country. It had a gross national in come per 
capita of USD  5,610 in 2020. Its geographical location, port infrastructure and political stability make 
it a major maritime hub and have prompted  several countries to establish military bases there. 
Revenue from the bases and from port activities  has fostered the emergence of a modern segment 
of the economy that coexists with a large informal sector. However, the high cost of production 
factors and the strong presence of public companies continue to hinder  the country's economic 
development. Given  Djibouti's narrow production base, international trade is fundamental for the 
country, which relies almost exclusively on imports to meet its domestic demand for most goods 
and some services. Thanks to  the infrastructure (especially ports), re -exports far  outstrip exports.  
2. Since Djibouti 's last Trade Policy Review in 2014, a strategic development plan has been 
launched to streamline the Government's efforts to support the country's economic growth. The plan 
seeks to improve the business climate and attract  investment beyond the transport and logistics 
sector with a view to promoting economic diversification and inclusive growth. In this context, 
measures have been taken to rationalize state -owned enterprises, a law on public -private 
partnerships has been ad opted, and efforts have been made to promote privatization. These reforms 
and recent massive investments in infrastructure, including ports, roads and free zones, fostered 
economic growth at rates ranging from 5.1 % to 8.5 % between 2014 and 2019, before plunging  in 
2020 due to lockdown and other restrictive measures imposed as a result of  the COVID -19 pandemic. 
In 2020, GDP grew by 1.2 %. 
3. Moreover, support measures for households and businesses in response to the economic 
shutdown, combined with difficulties in mobilizing fiscal revenue and numerous exemptions from 
duties and taxes on imports, have had a negative impact on the generally low level of the public 
deficit. Public debt has also risen because of the financing of lar ge infrastructure projects, with a 
consequent increased risk of debt distress. The authorities, mindful of this risk, undertook reforms 
during the review period.  
4. In general, the currency board system in place in Djibouti, coupled with the stable prices of 
imported goods, helped, to a large extent, to maintain a low -inflation environment from the last 
review  until 2020. However, inflation rose in 2021 in line with the global trend. Furthermore, the 
positive current account balance, which is heavily  influenced by the trade balance, has fluctuated as 
a result of re -export activity. If re -exports are excluded, Djibouti recorded a current account deficit 
throughout the review period. The deficit worsened during the years of major infrastructure works. 
As was the case at the time of the previous review, export statistics are non -existent. The major 
imports are food and petroleum products, together with household  electrical appliances and 
transport equipment. China, the United Arab Emirates, European Union  countries and Ethiopia are 
the main sources of Djibouti's imports.  
5. The objective of the trade policy set out in the strategy paper , "Vision  Djibouti  2035" , is to 
make Djibouti "Africa's trade and logistics hub", in particular by developing fisheries, tour ism, 
logistics, new information and communication technologies, financial services, the manufacturing 
industry and renewable energy resources. The reinforcement of the link between Djibouti and 
Ethiopia will be vital in this regard and will lay the groundw ork for regional integration with a view 
to creating a single market encompassing Djibouti, Ethiopia, South Sudan, Somalia and Eritrea.  
6. Djibouti is an original Member of the WTO. It is not a party to the plurilateral WTO  Agreement 
on Government Procurement . It ratified the Trade Facilitation Agreement in 2018 and is a member 
of the joint initiative on investment facilitation for development. Djibouti was not involved in any 
WTO dispute settlement cases during the period under review. The trade policies of D jibouti have 
been reviewed twice by the WTO. Djibouti submitted  nine notifications during the review period. 
Djibouti is part of the Common Market for Eastern and Southern Africa (COMESA), the Tripartite 
Free Trade Area (TFTA), the African Continental Free  Trade Area (AfCFTA), the Intergovernmental 
Authority on Development (IGAD) and the Community of Sahel -Saharan States (CEN -SAD). Djibouti 
is eligible for unilateral preferences under the Generalized System of Preferences (GSP) of most 
WTO Members; the EU's  "Everything But Arms" initiative; and the United States' African Growth and 
Opportunity Act (AGOA).  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  7. Foreign investment is authorized in all sectors to increase financing opportunities for the 
economy. However, maritime and transit activities, fish eries,  retail trade, telecommunications, 
electricity, water, regular mail services and salt remain reserved for national investors. In addition, 
although farmland cannot be purchased by foreigners, it may be ceded for 99  years . The basic 
legislation on investment remains the Investment Charter of 1994, which provides for tax incentives 
and has been the subject of only minor amendments, including the establishment of a single window 
in 2017. Djibouti acceded to the convention establishing the International Centre fo r Settlement of 
Investment Disputes (ICSID) in 2020 and is a party to five other multilateral investment protection 
instruments, nine bilateral investment protection treaties and five double taxation treaties.  
8. During the period under review, Djibouti carri ed out numerous legislative reforms to 
modernize and improve the business climate. These reforms concern, in particular: land registration 
and property taxation, the specialization of the judiciary and the reduction of judicial bottlenecks, 
voluntary conci liation and mediation procedures, leasing and securities, the protection of creditors, 
the enforcement of contracts, the resolution of insolvency, the obtaining of payment orders, the 
protection of minority investors, conciliation in disputes with the tax and land authorities, building 
standards, electric ity grid  connection procedures and the computerization of customs and the port 
community.  
9. On 5 March  2018, Djibouti deposited with the WTO its instrument of acceptance of the Protocol 
concerning  the Trade F acilitation Agreement. It also notified the list of measures for the different 
categories but has not yet indicated the dates for their implementation. Reforms have also been 
carried out to streamline customs procedures and facilitate administrative formal ities for those 
involved in international trade. All import declarations are made electronically through the ASYCUDA 
World customs clearance system, which is interconnected with, inter alia , the Ethiopian customs, 
free-zone operators, the tax directorate a nd the treasury, and with the Djiboutian port system. A 
specific module for regional transit is able to manage the exchange of information on the movement 
of goods to or from Djibouti. All Djibouti's customs offices are computerized and interconnected.  
10. Djibouti still does not officially have a customs tariff. However, the procedures for the 
application of its internal consumption tax (TIC) are very similar to those of a customs tariff. The 
tax is levied in five bands (zero, 8 %, 10%, 20% and 23 %) and its mod al or most common rate is 
23%. The simple arithmetic average of these rates was 18.2% in 2022.  In addition to TIC, imports 
are subject to VAT, excise duties and several other taxes. Djibouti has bound all its tariff lines. Bound 
rates range from zero to 45 0%. Other duties and taxes have been bound at a ceiling of 100 %. 
11. Most of the prohibitions and restrictions on imports and exports are in line with the 
international conventions to which Djibouti is a signatory, notably the Convention on International 
Trade in Endangered Species of Wild Fauna and Flora (CITES), the Stockholm Convention and the 
Rotterdam Convention. The country does not apply any quantitative restrictions on imports. Djibouti 
has no anti -dumping, countervailing or safeguard  regulations.  
12. Free zones are the main tool for promoting manufactured exports. However, they are still 
struggling to attract processing companies. Other support measures include incentives under the 
Investment Code and preferential credit granted to local companies.  
13. In order to develop the national standardization and quality promotion system, a new law was 
adopted in 2019 to better define its legal framework (including the procedures for the development 
and approval of standards and technical regulations).  The authorities have indicated that the 
operationalization of a national standardization agency is imminent. The Ministry responsible for 
industry is currently in charge of developing and approving standards and monitoring compliance 
with technical regula tions. The Ministry of Agriculture is responsible for controls relating to 
SPS regulations. Food products, animals and plants are systematically subject to s ample -taking and 
inspections . Djibouti has not submitted any notification either under the Agreemen t on Technical 
Barriers to Trade or under the Agreement on the Application of Sanitary and Phytosanitary Measures.  
14. Djibouti's industrial property legislation governs the granting and registration of patents, 
layout designs  (topographies)  of integrated circ uits, trademarks for products or services, trade 
names, geographical indications, appellations of origin, and industrial designs. It is implemented by 
the Djibouti Office of Industrial Property and Commerce. During the period under review, most of 
the inte llectual property rights registered concerned trademarks. The Djibouti Office for Copyright WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  and Related Rights (BDDA) is responsible for enforcing copyright in Djiboutian territory. The holder 
of the intellectual property right may initiate any administrat ive or legal proceedings with a view to 
ending the production of counterfeit goods or to preventing infringement if this is imminent . 
Proceedings may be instituted by the BDDA in the case of copyright.  
15. Goods production is under -developed  in Djibouti. Agric ulture is a marginal activity owing to 
the difficult natural conditions and is limited to extensive livestock farming and market gardening in 
oases and near towns. As a result, the country imports almost all its food, including fruits and 
vegetables. Although domestic production meets only 10 % of urban demand for meat, Djibouti is 
an exporter of livestock products. Fishing is reserved to nationals and industrial fishing is prohibited. 
Fisheries resources are not in significant, but their exploitation suffers  from a lack of infrastructure. 
Investment programmes are being rolled out.  
16. To date, the only extractive industry is salt, which is produced through a Sino -Djiboutian joint 
venture. However, Djibouti has real mining potential, with evidence of the presence  of perlite, 
bauxite, natural gas, copper, zinc, iron, aluminium, gold and oil. A mining code was adopted in 2018 
with a view to the eventual development of these resources.  
17. Djibouti's objective is to achieve 100 % renewable energy by 2035. To this end, ene rgy 
legislation has been modernized to open up production to competition; several foreign companies 
(independent power producers) have invested in wind and solar projects. However, a single 
state-owned enterprise, Électricité de Djibouti, is still currentl y responsible for all electricity 
production , using  thermal power stations fuelled by imported refined oil, since Djibouti does not yet 
have a refinery. Part of the electricity consumed in Djibouti is delivered through  a high -voltage line 
from Ethiopia, wi th plans to build a second . The percentage of the population connected to the 
electrical grid remains relatively low. A semi-public company  has the monopoly over t he importation 
of refined petroleum products, and the right to distribute such products has b een granted to 
three  local companies.  
18. The manufacturing sector is also marginal, contributing only 0.3 % to GDP. Its development 
faces multiple structural constraints: the small size of the domestic market, the inadequate training 
of the workforce and the r elatively high cost of labour and inputs, among other factors. Nevertheless, 
Djibouti wishes to promote manufacturing  activities, particularly in free zones, which it intends to 
develop further.  
19. Services constitute the bulk of Djibouti's economic activity, accounting for around 75 % of GDP 
in 2018. Transport services (especially ports and railways) stand out because of the massive 
investments made in them, mainly by Chinese companies. The Addis Ababa -Djibouti railway line has 
been completely rebuilt  and was put into service in 2018. Djibouti has begun to pay off the 
USD 3.4 billion loan from China EXIM Bank, which financed the project. Road transport has suffered 
only temporarily from this new competition, reflecting the intensity of trade with Ethio pia. In addition 
to the port of Djibouti itself and the Doraleh container terminal inaugurated in 2009, there is the 
Doraleh multipurpose port (brought into operation in 2017 thanks to an investment of 
USD 600 million) and the Tadjourah mineral terminal (a lso operational since 2017, with an 
investment of USD  90 million). Another mineral terminal is under construction at Ghoubet. Maritime 
traffic was only slightly affected by the COVID -19 pandemic. Djibouti also has a small 
national -flagged fleet, for which cabotage traffic is reserved. There are two private airlines based in 
Djibouti that serve mainly regional destinations. Air traffic was also only marginally affected by the 
pandemic thanks to military base and port activities.  
20. Djibouti is the terminus of s everal interoceanic cables. Because of this strategic position, 
Djibouti Telecom, the national monopoly, has specialized in the business -to-business sector, 
reselling most of its capacity to Ethiopia while developing interconnections between Africa and the  
Arabian Peninsula. In the domestic market, the penetration rate of mobile telephones in particular 
remains low (around 40 %) and that of fixed lines is almost zero. In order to develop this market, a 
process has been launched to partially privatize Djibout i Telecom. Djibouti also harbours ambitions 
to create a special zone for information technology and, in particular, to expand call centres.  
21. Financial services in Djibouti are dominated by the banking sector, which accounts for 97 % of 
assets. The insurance sector is very small and there are no stock exchanges. During the period under 
review, there was an expansion in the country's banking system thanks, in particular, to the growth WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  of its GDP and the dynamism of its services sector. This expansion was furthe r sustained by the free 
movement of capital and the absence of exchange controls. Four new institutions were established 
during the period under review. Notwithstanding the existence of savings and credit unions and 
microcredit institutions, the bank accou nt penetration rate remains low and financial inclusion is still 
at an embryonic stage. Djibouti has strengthened the regulation and supervision of the sector, 
including through the adoption of anti -money laundering provisions and of instructions covering  
internal controls , capital  adequacy , solvency ratio s, large exposures , capital composition, holdings , 
bad debt  and liquidity  requirements  in order to apply the Basel III principles. Djibouti has also 
strengthened the regulatory framework for Islamic banks.  The International Monetary Fund  (IMF) 
considered this progress encouraging , but said that the central bank should continue to upgrade the 
banking sector regulatory environment, reinforce risk -based supervision, and improve access to 
finance.  
22. Tourism is a promising industry for the country. Djibouti's hotels were modernized during the 
period under review and were only marginally affected by the pandemic, with the bulk of their 
clientele either being businesspeople or having a connection to the military base s. Despite the 
country's real potential in terms of natural attractions, tourism remains a marginal activity, but one 
for which the Government has developed a strategy based on sustainability.  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  Djibouti is a least developed country (LDC) and has been classified by the World Bank as a 
lower -middle -income country.1 Although located in the conflict -ridden Horn of Africa region, the 
country enjoys a relatively stable political situation and occupies a prime geopolitical and strategic 
position. Djibouti is a major maritime trade hub with several deep -water ports that serve as a transit 
point for its landlocked neighbour Ethiopia and as a transhipment s ite for other countries.  
1.2.  Its strategic location close to major shipping corridors, Middle East conflict areas and maritime 
piracy areas, and its political stability make Djibouti an important site for military bases. The 
importance of revenue from ports an d military bases gives rise to a dualism in the economy with, 
on the one hand, a modern sector sustained by this revenue (from ports and military bases rented 
by foreign contingents) and, on the other, a large traditional and essentially informal sector.  
1.3.  The strong economic performance of recent years has led to some improvement in employment 
and poverty rates. Indeed, the overall poverty rate has declined in recent years, from 40.8 % in 2013 
to 35.8 % in 2017, according to the African Development Bank (AfDB) . According to the 2017 Djibouti 
Household Survey, the overall poverty rate that year stood at 35.3 %. Furthermore, the Human 
Development Index (HDI), which was 0.445 in 2013, gradually improved to 0.524 in 2019.  
1.4.  With regard to unemployment, the Djibouti au thorities' official survey on employment, the 
informal sector and household consumption indicated an unemployment rate of 39 % in 2015. It is 
much higher for women (49 %) than for men (34 %), and in rural areas (59 %) than in urban 
areas  (37%).2 More recently , the results of the Djibouti Household Survey indicated an estimated 
unemployment rate of 47 % in 2017, with a higher rate among women (63 %) than among 
men (38%). These high rates are partly explained by the non -inclusive nature of growth driven by 
capital -intensive activities focused mainly on port services. Indeed, the structure of Djibouti's GDP 
remains dominated by the services sector, particularly port activities and finance, which accounted 
for more than three quarters of GDP on average during the rev iew period, although there has been 
a noticeable decline since 2017 due to the boom in construction and building and public works 
(Table  1.1). Agriculture, including livestock farming, fishing and forestry, accounted for less than 
2% of GDP over the period  under review. The vulnerability of agriculture to climatic variations, the 
lack of water resources and the scarcity of arable land prevent the development of the sector.  
Table 1.1 Main economic indicators, 20 13–20 
 
2013  2014  2015  2016  2017  2018  2019  2020  
Nominal GDP 
(DJF million)  363,052  393,865  434,612  465,375  491,728  535,438  567,200  575,500  
Nominal GDP 
(USD  million)  2,043  2,216  2,445  2,619  2,767  3,013  3,191  3,238  
GDP real growth rate (%)  .. 7.1 7.7 6.9 5.1 8.5 6.6 1.2 
Nominal GDP per capita 
(USD) [calculated]  .. .. 2,664  2,805  2,918  3,130   3,269  3,273  
Nominal GDP per capita 
(USD) [IMF Art. IV]  .. .. 2,533  2,638  2,711  2,787  .. .. 
GDP by economic 
activity (%)          
 Agriculture  0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 
 Livestock farming  0.4 0.5 0.5 0.6 0.8 0.9 0.7 0.7 
 Forestry  0.1 0.1 0.1 0.1 0.1 0.0 0.1 0.1 
 Fisheries  0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.2 
 Mining  0.2 0.3 0.3 0.3 0.3 0.7 0.7 0.8 
Agri-food industries  1.4 1.7 1.7 1.8 2.0 2.1 1.9 2.0 
Other manufacturing 
industries  0.6 1.1 1.1 1.1 1.1 1.1 1.1 1.1 
 Electricity  3.2 2.9 3.4 3.0 3.4 3.0 3.2 3.3 
 Water, sanitation  1.0 0.9 0.9 0.9 0.9 1.0 1.1 1.1 
 Construction (building 
and public works)  4.8 4.6 4.1 4.1 4.0 8.7 9.1 9.9 
 Trade  23.8 25.9 26.4 25.7 26.5 26.2 25.4 24.6 
 
1 Djibouti had a gross national income per capita of USD 5,610 in 2020.  
2 Alexei Kireyev (IMF Working Paper), Djibouti 's Quest for Inclusive Growth, viewed at: 
https://www.imf.org/~/media/Files/Publications/WP/2017/wp17270.ashx . WT/TPR/S/430 /Rev.1  • Djibouti  
 
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2013  2014  2015  2016  2017  2018  2019  2020  
Transport, postal and 
courier services  21.7 20.6 20.1 20.3 19.1 17.2 17.0 15.9 
Accommodation and 
food services  1.0 0.9 0.9 0.8 0.7 0.6 0.7 0.7 
Information and 
communication  3.2 3.6 3.4 3.3 3.3 3.1 3.6 3.7 
 Banking and insurance  4.1 3.1 3.3 3.3 3.5 3.3 3.6 3.6 
 Real estate activities  5.0 4.7 4.4 4.2 4.1 3.7 3.9 3.9 
Professional, scientific 
and technical activities  2.9 2.4 2.3 2.1 2.0 1.9 1.8 1.7 
Other tradable services  1.1 1.2 1.2 1.2 1.2 1.1 1.2 1.2 
Public administration  12.6 12.7 13.1 14.7 14.4 13.3 13.6 14.3 
Other non -tradable 
services  5.2 5.5 5.2 5.0 4.9 4.4 4.7 4.8 
Total value added  93.2 93.2 92.8 93.1 92.9 93.0 93.8 93.9 
 Taxes net of product 
subsidies  6.8 6.8 7.2 6.9 7.1 7.0 6.2 6.0 
GDP at constant 2013 
prices (DJF  million)          
Final consumption  283,348  310,165  338,316  387,893  421,589  438,755  .. .. 
 Households  211,608  230,755  255,031  283,967  314,136  329,233  .. .. 
 Public administration  71,418  78,462  82,269  102,871  106,361  108,447  .. .. 
 NPISH  322 948 1,016  1,056  1,092  1,076  .. .. 
Investment  206,481  8,881  -15,603  151,227  195,987  19,672  .. .. 
Gross fixed capital 
formation (GFCF)  90,929  107,229  125,949  127,589  127,098  97,591  .. .. 
 Private  53,197  70,492  80,975  90,141  96,176  66,203  .. .. 
 Public, NPISH  37,732  36,737  44,974  37,448  30,922  31,388  .. .. 
 Variation in inventories  115,552  -98,348  -141,552  23,638  68,889  -77,919  .. .. 
Net exports  -126,777  69,643  95,807  -91,644  -147,382  51,710  .. .. 
 Exports  568,315  607,486  600,298  446,704  689,589  760,723  .. .. 
 Imports  695,092  537,844  504,491  538,348  836,971  709,013  .. .. 
GDP at constant 2013 
prices (DJF  million)  363,052  388,689  418,521  447,476  470,194  510,137  .. .. 
GDP at constant 2013 prices (annual growth 
rate, %)        
Final consumption  .. 9.5 9.1 14.7 8.7 4.1 .. .. 
 Households  .. 9.0 10.5 11.3 10.6 4.8 .. .. 
 Public administration  .. 9.9 4.9 25.0 3.4 2.0 .. .. 
 NPISH  .. 194.4  7.2 3.9 3.4 -1.5 .. .. 
Investment  .. -95.7 -275.7  -1,069.2  29.6 -90.0 .. .. 
Gross fixed capital 
formation (GFCF)  .. 17.9 17.5 1.3 -0.4 -23.2 .. .. 
 Private  .. 32.5 14.9 11.3 6.7 -31.2 .. .. 
 Public, NPISH  .. -2.6 22.4 -16.7 -17.4 1.5 .. .. 
 Variation in inventories  .. -185.1  43.9 -116.7  191.4  -213.1  .. .. 
Net exports  .. -154.9  37.6 -195.7  60.8 -135.1  .. .. 
 Exports  .. 6.9 -1.2 -25.6 54.4 10.3 .. .. 
 Imports  .. -22.6 -6.2 6.7 55.5 -15.3 .. .. 
GDP at constant 2013 
prices (DJF  million)  .. 7.1 7.7 6.9 5.1 8.5 .. .. 
Money          
M1 aggregate 
(annual  growth rate, %)  22.8 8.7 22.6 13.4 1.1 11.6 4.3 8.6 
M2 aggregate 
(annual  growth rate, %)  16.1 8.7 22.8 15.5 1.0 11.8 5.2 7.2 
M3 aggregate, money 
supply (annual growth 
rate, %)  6.7 6.4 18.6 8.6 20.0 -5.6 8.8 8.6 
Exchange rate (DJF/USD, 
annual average)  177.7  177.7  177.7  177.7  177.7  177.7  177.7  177.7  
Consumer price index 
(CPI) [INSTAD]  .. .. .. 104.0  105.0  105.0  109.0  110.4  
Inflation (CPI, annual 
change) [INSTAD]  .. .. .. .. 1.0 0.0 0.3 0.3 
Inflation (CPI, annual 
change) [IMF]  .. .. -0.8 2.7 0.6 0.1 2.2 2.0 
Population ('000)  886.1  902.3  918.1  933.4  948.2  962.5  976.1  989.1  
.. Not available.  
Source:  National Institute of Statistics of Djibouti (INSTAD), Statistical Yearbook, various issues; Ministry of 
the Economy and Finance, 2019 Annual Report; International Monetary Fund, International Financial 
Statistics.  
1.5.  Djibouti maintains a strong presence of state -owned enterprises in several economic sectors. 
Since the economy is small, these enterprises often enjoy full or near monopolies, which has 
generally affected the quality of the goods and services that they offer while keeping their prices WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  high. Efforts are currently under way to rationalize the activities of state -owned enterprises and 
promote the development of the private sector i n certain economic sectors such as 
telecommunications ( Sections 3.3.5 and 4.4.1).  
1.6.  A currency board arrangement is in place in Djibouti. This means that deposits held by 
commercial banks and banknotes issued by the central bank are fully covered by foreign assets. 
Under this system, the Djibouti franc is pegged to the US dollar at a fixed rate of DJF  177.721. 
Djibouti applies the provisions of Article VIII of the IMF's Articles of Agreement and maintains an 
exchange system that is free of restrictions on pay ments and transfers for current international 
transactions.3 
1.7.  International trade remains fundamental for Djibouti, given its narrow production base and 
heavy reliance on imports.  
1.2  Recent economic developments  
1.8.  In 2014, Djibouti launched a strategic reference framework, Vision Djibouti 2035, which sets 
out a long -term vision for the country. The national development strategy outlined in the strategy 
paper aims to promote economic diversification through reforms such as improving the business 
climate, including by reducing factor costs and carrying out major infrastructure projects. The first 
medium -term strategy, the Strategy for Accelerated Growth and Employment Creation (SCAPE), 
was adopted in 2015 to promote growth and employment in the short term.  
1.9.  Overall, the implementation of the SCAPE has enabled Djibouti's economy to registered strong 
growth during the review period, with GDP increasing at rates ranging from 5.1 % to 8.5 %, before 
falling in 2020 owing to the socio -economic effects of the COVID -19 pandemic. That strong 
performance was bolstered by, among other things, vibrant trade and logistics activities in the wake 
of the recent performance of the Ethiopian economy. In addition, the spillover effects of major 
government investments continue to b oost final consumption (Table 1.1). The slight decline in the 
pace of growth in 2017 was due to the completion of major infrastructure projects and the political 
unrest in Ethiopia, which affected port and transport activities.  
1.10.  Since 2015, in line with the  ambitions expressed in Vision Djibouti 2035, significant 
investments have been made in ports, free trade zones, an aqueduct, and a railway line linking 
Djibouti to Addis Ababa. As a result, public investment also contributed to Djibouti's economic growth 
during the period.  
1.11.  From a sectoral point of view, services, especially port activities, transport and financial 
intermediation, continue to drive growth. Far behind, the contribution of construction, and water 
and electricity supply activities is increasing. Manufacturing activities remain very limited because 
of the persistently high cost of water, electricity and labour. Agriculture's contribution remains low 
and volatile owing to its vulnerability to climatic variations.  
1.12.  Djibouti was hit hard by  the COVID -19 crisis. The lockdown and other restrictive measures, 
including those imposed on international transport, have particularly affected economic activity. 
Having been projected at 6 % before the crisis, Djibouti's economic growth was just 1.2 % in 2020. 
The Government's stimulus package seems to augur a resumption of growth in the coming years at 
levels comparable to those of the pre -pandemic years.4 
1.13.  In the midst of a multi -faceted crisis (COVID -19, armed conflict in Ethiopia and drought in 
Djibout i), the second operational plan of Vision Djibouti 2035, entitled Inclusion, Connectivity, 
Institutions (ICI), was adopted in February  2022 to replace the SCAPE. According to the authorities, 
this five -year plan aims to make Djibouti a trade and logistics hub, and develop a modern regional 
financial centre.  
 
3 IMF, Djibouti: 2019 Article IV Consultation, viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2019 /10/23/Djibouti -2019-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-48743 . 
4 Central Bank of Djibouti, Rapport Annuel 2020 , viewed at: https://banque -centrale.dj/wp -
content/uploads/2021/11/BCD -Rapport -annuel -2020.pdf . WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  1.14.  On the fiscal side, official statistics show that government deficit levels have remained 
below  2% of GDP since 2013 (Table 1.2). However, according to the IMF, the overall fiscal deficit, 
which includes  public investment expenditure, was particularly high in 2015 and 2016 (15.7 % and 
8.7% of GDP) because of the financing of large infrastructure projects. Thus, following the 
completion of these major projects, the deficit fell to less than 3 % of GDP in 201 8 and to 1.8 % in 
2019. Moreover, while the projected fiscal deficit for 2020 was 1.7 % of GDP before the COVID -19 
crisis, it eventually reached 2.5 % as a result of lower government revenues due in particular to the 
economic downturn and higher government sp ending, especially on health and on support for 
businesses and households.  
Table 1.2 Financial transactions by the State, 2013 -20 
(% of GDP)   
2013  2014  2015  2016  2017  2018  2019  2020  
Revenue and grants  26.5 23.9 26.2 25.0 23.6 22.6 23.3 22.8 
 Total budgetary income  23.4 19.7 21.3 23.4 21.8 20.6 19.3 19.5 
 Tax revenue  15.2 14.0 15.1 13.9 13.5 13.2 12.7 11.4 
 Direct taxes  6.3 6.6 6.1 6.0 5.6 5.5 5.3 5.0 
 Indirect taxes  6.9 6.7 7.2 6.9 7.1 6.7 6.4 6.0 
 Other taxes  1.9 0.8 1.7 1.0 0.8 1.0 1.0 0.5 
 Non-tax revenue  8.2 5.7 6.2 9.4 8.3 7.4 6.6 8.0 
 Grants  3.2 4.2 4.9 1.6 1.8 2.0 4.0 3.3 
Total expenditure  26.8 25.4 26.5 25.7 23.8 23.3 23.6 25.0 
 Current expenditure  17.1 16.0 16.3 17.8 17.7 16.6 15.5 15.6 
 Wages  6.9 6.7 6.4 6.7 6.8 6.6 6.0 6.2 
 Equipment  5.3 4.5 5.3 6.4 6.1 5.1 4.7 5.3 
 Maintenance  0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 
 Transfers  3.8 3.6 3.6 3.5 3.4 3.3 3.1 3.3 
 Interest  0.2 0.3 0.4 0.8 1.1 1.2 1.2 0.6 
Externally financed 
development programmes  0.6 0.5 0.3 0.1 0.1 0.2 0.3 0.0 
 Capital expenditure  9.7 9.2 10.3 7.9 6.1 6.7 8.1 7.0 
 On domestic financing  5.7 4.5 7.1 4.8 3.7 3.2 3.7 3.9 
 On external financing  4.0 4.7 3.2 3.1 2.4 3.5 4.4 3.1 
Deficit (based on payment 
orders)  -0.3 -1.4 -0.3 -0.8 -0.2 -0.7 -0.3 -2.3 
  Arrears (+ 
accumulation, - payment)  -0.7 -0.4 -0.4 -0.4 -0.1 -0.3 -0.3 0.1 
Deficit (cash basis)  -1.1 -1.7 -0.7 -1.1 -0.3 -1.0 -0.6 -2.2 
Financing  1.0 1.5 0.6 1.0 0.3 1.0 0.6 2.2 
 Domestic financing  0.3 0.8 0.0 -0.4 -0.5 -0.4 -1.4 -0.4 
 Bank financing  -2.1 -2.4 0.1 -0.4 -0.5 -0.4 -1.3 -0.4 
 Non-bank financing  2.4 3.2 0.0 0.0 0.0 0.0 -0.1 0.0 
 External financing  0.7 0.6 0.6 1.4 0.8 1.5 1.9 2.6 
Adjustments  0.0 -0.2 -0.1 -0.1 0.0 0.0 0.0 0.0 
Public debt  34.2 38.1 47.6 62.2 71.1 68.4 67.6 74.0 
 Direct government debt  25.0 22.3 19.9 19.5 20.2 19.8 14.7 .. 
Government -guaranteed 
debt of public institutions  9.3 15.8 27.7 42.7 50.9 48.6 50.2 .. 
.. Not available.  
Source:  National Institute of Statistics of Djibouti (INSTAD), Statistical Yearbook, various issues.  
1.15.  In order to address the socio -economic impacts of the pandemic, the Government distributed 
food and cash transfers to vulnerable households, deferred the collectio n of taxes for four months 
for the companies most affected by the crisis, and granted subsidies to public water, electricity and 
telecommunications companies.5 Public finances remain under increased pressure as tax 
 
5 African Development Bank, Country Portfolio Performance Review, viewed at: 
https://www.afdb.org/en/documents/djibouti -csp-2016-2020-update -and-extension -until-end-2022-and-
country -portfolio -performance -review -2020. WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 14 - 
 
  expenditures (special tax regimes and exemptions for free zones, military bases and new 
investments) remain high ( Sections 2.4 and 3.1.6).  
1.16.  Public investment in large infrastructure projects, financed by large, partly non -concessional, 
loans, has increased the risk of debt distress. Against this backdrop, foreign debt contracted or 
guaranteed by the State increased from 34.2 % of GDP in 2013 to about 74 % in 2020 (Table  1.2). 
However, it fell slightly in 2018 and 2019, thanks in particular to the restructuring of part of the 
Government's borrowing from China.6 Although the recent IMF/World Bank debt sustainability 
analysis published in 2019 concluded that Djibouti's public debt remained sustainable, it hi ghlighted 
that the risk of debt distress remained high with a strong susceptibility to shocks, including falling 
export earnings. The Central Bank of Djibouti's annual report (2020) indicated that the majority of 
foreign debt is still owed to bilateral par tners, which accounted for 70.5 % in 2019, compared to 
29.5% for multilateral institutions.7 According to the authorities, Djibouti's main bilateral donors are 
China, the Kuwait development fund and the Saudi development fund.  
1.17.  Against this backdrop of tigh t public finances, the Djibouti authorities' efforts are focused on 
clearing external arrears and reducing public sector borrowing through reforms aimed at developing 
a medium -term fiscal framework and strengthening debt management. In this context, the 
authorities have indicated that reforms are under way to improve the governance of state -owned 
enterprises, which are the main debtors in the total public external debt stock. In addition, a 
technical debt committee, chaired by the Prime Minister, has been s et up to monitor the debt and 
the implementation of reforms necessary to ensure public debt sustainability.  
1.18.  On 8 May 2020, the IMF approved a disbursement to Djibouti under the Rapid Credit Facility 
equivalent to SDR  31.8 million (about USD  43.4 million, o r 100 % of its quota) to help the country 
to meet its urgent balance of payments needs stemming from the COVID -19 pandemic. The IMF 
also approved grants under the Catastrophe Containment and Relief Trust (CCRT) to cover Djibouti's 
debt service falling due t o the IMF on 13  October  2020, the equivalent of SDR  1.692  million, or 
USD 2.3 million.8 
1.19.  Inflation in Djibouti is chiefly imported. It has remained under control, averaging less than 
1% since 2017, thanks to stable food and oil prices during the review per iod. However, according to 
the authorities,  it rose by 2.5 % year-on-year in December  2021 on the back of higher global oil and 
food prices. In addition to contributing to the predictability of international transactions by pegging 
the Djibouti franc to the dollar9, the currency board system has helped to maintain a low -inflation 
environment.  
1.20.  In accordance with the legislation in force, the Central Bank of Djibouti monitors money 
supply, bank credits and foreign currency transactions. In this regard, it is committed to preserving 
the external and internal value of the national currency by maintaining the fixed parity of the 
Djibouti  franc with the US dollar and its floating rate with other currencies. According to the 
authorities, the coverage of the curr ency board was 106.5 % in 2015 and 106 % in 2021. Foreign 
exchange reserves remained stable during the review period, averaging over three months of 
imports of goods and services.  
1.21.  The current account balance has fluctuated significantly, particularly as a re sult of re -export 
activity. Although it was in surplus for most of the review period, if re -exports are excluded, it 
remained heavily in deficit over the whole period. The influx of imports for investment projects led 
to a deterioration of the current acco unt in 2016 and 2017. However, the relatively good 
performance of the services balance helped, to some extent, to offset the decline in the current 
account (Table 1.3).  
 
6 IMF, Djibouti: 2019 Article IV Consultation, viewed at: 
https://www.imf.org/en/Publications /CR/Issues/2019/10/23/Djibouti -2019-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-48743 . 
7 Central Bank of Djibouti, Rapport Annuel 2020 , viewed at: https://banque -centrale.dj/wp -
content/uploads/2021/11/BCD -Rapport -annuel -2020.pdf . 
8 IMF, Press Release, viewed at: https://www.imf.org/en/News/Articles/2020/05/08/pr20211 -djibouti -
imf-executive -board -approves -disbursement -under -the-rcf-to-address -covid-19. 
9 The Djibouti franc (DJF) is pegged to the United States dollar at a fixed rate  of DJF 177.721  = USD 1. WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  Table 1.3 Balance of payments, 2013 -20 
(USD million)   
2013  2014  2015  2016  2017  2018  2019  2020  
Current account balance  -629 531 714 -26 -132 429 564 366 
 Current account balance 
excluding re -exports  -2,646  -1,868  -1,580  -1,484  -2,874  -2,669  -3,416  -2,098  
Trade balance  -866 113 135 -595 -414 -81 -142 -127 
 Trade balance excluding 
re-exports  -2,883  -2,286  -2,159  -2,053  -3,155  -3,178  -4,122  -2,591  
 Exports  2,401  2,704  2,582  1,732  3,162  3,522  3,996  2,785  
 Of which: re -exports  2,017  2,399  2,294  1,458  2,741  3,097  3,980  2,464  
 Imports  3,268  2,591  2,447  2,327  3,576  3,603  4,138  2,911  
Services balance  153 331 410 450 254 455 528 397 
 Exports  797 863 943 971 985 1,041  1,153  910 
 Transport  512 500 497 526 538 556 615 511 
 Travel  22 25 40 39 36 57 63 30 
 Communications 
services  66 82 85 90 96 102 113 85 
 Government services  188 188 222 222 224 247 273 212 
 Embassies and 
consulates  40 40 46 46 45 49 55 43 
 Military units and 
delegations  108 113 138 139 141 155 172 130 
 Families of the 
military  40 35 38 38 38 42 46 39 
 Other  9 69 100 94 91 80 89 72 
 Imports  644 532 534 521 730 586 626 514 
 Transport  547 452 433 414 621 498 532 435 
 Travel  19 21 29 24 28 22 25 15 
 Communications 
services  25 11 16 22 18 15 15 17 
 Insurance services  20 22 31 29 27 21 23 17 
 Government services  17 21 19 20 21 17 19 19 
 Other  16 5 6 11 16 13 12 11 
Income  -28 -24 -27 -80 -127 -142 -94 -99 
 Credit  40 38 40 40 41 60 79 64 
 Compensation of 
employees  40 38 40 40 41 58 79 45 
 Investment income  0 0 0 0 0 2 0 19 
 Direct investment  .. .. .. .. .. 0 .. .. 
 Portfolio investment  .. .. .. .. .. .. .. .. 
 Other  .. .. .. .. .. 2  
19 
 Debit  -68 -62 -67 -120 -168 -202 -173 -163 
 Compensation of 
employees  0 0 0 0 0 0 0 -2 
 Investment income  -68 -62 -67 -120 -168 -202 -173 -161 
 Direct investment*  -28 -47 -60 -92 -121 -131 -134 -119 
 Portfolio investment  0 .. .. .. .. .. .. .. 
 Other  -39 -14 -6 -29 -47 -71 -40 -42 
Current transfers  112 110 196 198 154 197 272 195 
 Credit  127 125 210 217 173 216 285 211 
 General government  119 117 174 187 143 170 255 184 
 Other  8 8 35 30 30 47 30 26 
 Debit  -14 -16 -13 -19 -19 -20 -13 -16 
 General government  -2 -2 -1 0 0 0 0 0 
 Other  -13 -14 -12 -18 -19 -20 -13 -16 
Capital and financial 
account  144 406 394 479 122 444 352 39 
 Capital transfers  50 65 48 34 26 70 40 37 
 Credit  50 65 48 34 26 72 42 38 
 General government  50 65 48 34 26 72 42 38 
 Migrants' transfers  .. .. .. .. .. .. .. .. 
 Debit  0 .. .. 0 0 2 2 2 
 General government  0 .. .. .. .. 2 2 2 
 Migrants' transfers  .. .. .. .. .. .. .. .. 
Financial account  94 341 346 445 95 375 312 2 
 FDI 286 153 144 160 165 170 175 158 
 Credit  286 153 144 160 165 170 175 158 
Portfolio investment  -1 -1 -11 9 0 0 -12 210 
 Assets  -1 -1 -11 9 0 0 -12 -10 
 Banking  -1 -1 -11 9 0 0 -12 -10 
 Liabilities  0 0 0 0 0 0 0 219 
 Banking  0 0 0 0 0 0 0 39,006  
Other investment  -16 159 188 319 90 93 189 -183 
 Assets  -59 10 -241 -88 -241 82 -82 -346 
 Banking  -57 -68 -241 -39 -223 72 -49 -261 
 Other  0 75 -2 -42 -25 3 -22 -3 
 Loans  -3 4 1 -7 7 7 -12 -82 
 Liabilities  43 149 429 406 331 11 271 163 WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 16 - 
 
   
2013  2014  2015  2016  2017  2018  2019  2020  
 Banking  22 60 42 -48 40 -56 109 -159 
 Currency and deposits  0 -1 -1 16 1 -1 -1 1 
 Other liabilities  0 -1 -1 -1 1 0 15 1 
 Loans  22 91 388 439 288 68 148 320 
 Monetary authorities  0 -3 -2 -2 -3 -3 -5 -1 
 IMF disbursements  0 .. .. .. .. .. ..  
 IMF repayments  0 -3 -2 -3 -3 -3 -5 -1 
 Arab Monetary Fund 
(AMF) disbursements  0 .. .. .. .. .. .. .. 
 AMF repayments  0 .. .. .. .. .. .. .. 
 Other long -term 
disbursements  .. .. .. .. .. .. .. .. 
 Other long -term 
repayments  0 0 0 0 0 0 0 0 
 General government  15 5 14 39 23 49 47 59 
 General government  - 
disbursement  32 22 30 53 41 70 66 75 
 General government  - 
repayment  -18 -17 -16 -14 -18 -21 -20 -16 
 Other long -term loans  7 89 376 403 268 22 107 263 
 Other long -term 
disbursements  28 109 396 422 291 57 147 280 
 Other long -term 
repayments  -21 -20 -19 -20 -23 -35 -40 -17 
Foreign exchange reserves  -175 30 25 -43 -159 112 -41 -182 
Net errors and omissions  485 -937 -1,108  -453 11 -873 -916 -405 
Memorandum item:                  
Current account balance  
(% of GDP)  -30.8 23.9 29.2 -1.0 -4.8 14.2 17.0 .. 
Current account balance 
excluding re -exports  
(% of GDP)  -129.5  -84.3 -64.6 -56.7 -103.9  -88.6 -102.7  .. 
.. Not available.  
Source:  Information provided by the authorities.  
1.3  Developments in trade and investment  
1.3.1   Trade in merchandise and services  
1.22.  Djibouti continues to face difficulties in collecting and publishing its foreign trade statistics. 
The autho rities make an effort to produce data on imports. However, these remain of limited use. 
Data on exports, meanwhile, are non -existent. The authorities have indicated that the Economic and 
Statistical Observatory for Sub -Saharan Africa (AFRISTAT) would assis t the National Institute of 
Statistics of Djibouti (INSTAD) in setting up a system to compile export data.  
1.23.  Available data indicate that merchandise imports ticked upward from 2016 to 2018 before 
declining in 2019 and 2020. Food and petroleum products, toge ther with household  electrical 
appliances and transport equipment, make up the bulk of Djibouti's imports (Table  A1.1 and 
Chart  1.1). While food imports continued to rise for most of the review period, imports of machinery, 
household  electrical appliances and transport equipment fell significantly, due in large part to the 
military conflict in Ethiopia and the health crisis. In addition to Ethiopian imports transiting through 
Djibouti, some goods enter in relatively large quantities and are stored on Djibou ti's territory, 
including in customs warehouses and free zones, before being re -exported, usually to Ethiopia. As 
a result, total goods exports would certainly have followed the same pattern as imports.  
1.24.  China, the United Arab Emirates, European Union count ries and Ethiopia are the main sources 
of Djibouti's imports (Table A1.2 and Chart 1.1).  WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 17 - 
 
  Chart 1.1 Structure of merchandise imports, 2016 and 2020  
 
Source:  WTO Secretariat calculations, on the basis of the Yearbook of Foreign Trade, various issues 
(INSTAD), and of data provided by the authorities.  
1.25.  Thanks to the impetus of its port services, Djibouti is a net exporter of services, with transport 
activities accounting for the largest share (Table 1.3). The surplus balance in the services account 
decreased in 2017 and in 2020, as a result of the end of services related to major infrastructure 
works and the effects of the health crisis, respectively.  
1.3.2   Trends and patterns in FDI  
1.26.  Despite political stability and a  stable exchange rate system that ensures a degree of 
predictability in economic transactions, Djibouti is still struggling to mobilize foreign investment in a 
sustainable manner outside the transport and logistics sector. Indeed, foreign direct 
investment  (FDI) remained concentrated in services, particularly the port and road sectors. The high 
costs and scarcity of production factors, especially electricity and labour, detract from the country's 
attractiveness and are a real obstacle to its economic divers ification.  
2016 2020
By main HS sections:
Other
9.1%
Ethiopia
11.2%India
2.5%Other
20.8%
United Arab Emirates
17.0%By main partners:
Saudi Arabia, 
Kingdom of
4.6%Ethiopia
14.7%
United Arab 
Emirates
10.5%
Total:   USD 798 million Total:  USD 750 millionTransport equipment
11.7%
Türkiye
4.2%Live animals; 
animal products 
3.5%Chemicals
4.3% Live animals; animal 
products
3.8%
Türkiye
5.6%Base metals and 
articles of base 
metal
4.2%Textiles and textile 
articles
4.1%
EU-27
13.6%Plastics and rubber
5.3%
Machinery and electrical 
equipment
19.3%Other
8.8%Plastics and rubber
6.7%
Base metals and 
articles of base 
metal
8.2%Mineral products 
14.7%
Saudi Arabia,
Kingdom of
8.9%Prepared foodstuffs, 
beverages and tobacco
10%
Vegetable products
11.8%
Transport 
equipment
9.6%
India
2.5%China
21.7%Textiles and textile 
articles 3.4%
Other
44.8%
China
9.2%Vegetable products
16.3%
EU-27
8.1%Machinery and 
electrical equipment
13.5%Prepared foodstuffs, 
beverages and tobacco
6.5%
Mineral products
13.8%
Chemicals
11.3%WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  1.27.  According to the OECD, Chinese companies have recently begun to diversify their investment 
sectors by turning to the exploitation of natural resources (fish, salt and energy) and the 
development of tourism.10 
1.28.  The data available on FDI are incomp lete and exclude investments in port entities. The data 
do indicate that FDI flows to real estate, industry and services have fluctuated significantly over the 
review period and come mainly from Asian countries, in particular China and India, and from 
Gulf countries, especially the United Arab Emirates, Kuwait and Saudi Arabia (Table  1.4). The 
services sector was the main recipient of annual FDI inflows, except in 2018 when industrial activities 
received greater investment.  
Table 1.4 Foreign direct investment (FDI) by sector and origin, 2014 -19 
(In USD)   
2014  2015  2016  2017  2018  2019  
Total 600,109  16,257,515  11,896,744  3,380,925  41,815,698  4,457,688  
By sector        
Real estate  
(Construction)  0 0 3,124,162  607,953  0 859,438  
Industry  280,963  143,331  6,244,109  260,463  36,063,330  611,506  
Services  7,589  15,824,384  2,325,296  2,512,509  5,631,559  2,986,744  
Transport  311,557  289,800  203,177  .. 120,809  .. 
By origin        
Africa  288,552  .. 447,801  2,184,012  249,385  92,516  
Arab countries  .. 270,088  9,204,070  .. 25,377,707  2,987,089  
Asia .. 13,618,973  607,953  1,196,913  11,102,025  669,128  
Europe  .. 2,078,654  203,176  .. 4,951,137  97,449  
Joint venture  311,557  289,800  1,433,744  .. 135,444  611,506  
.. Not available.  
Source:  IMF, Djibouti: Technical Assistance Report -External Sector Statistics, January  2021.  
 
 
 
10 OECD, Perspectives économiques en Afrique 2017 , viewed at: https://www.oecd -
ilibrary.org/development/persp ectives -economiques -en-afrique -2017/djibouti_aeo -2017-27-fr. WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General framework  
2.1.  Djibouti is a unitary republic. Its last Constitution to date, under a presidential system, was 
approved by referendum on 4  September  1992. This Constitution abolished the single -party regime 
and instituted a multi -party system limited to four parties, which lasted for 10 years . The full 
multi-party system (with an unlimited number of parties) was established in 2002. The Constitution 
was last amended in 2010. Among other things, it reinforced the multi -party system, abolished the 
death penalty, reduced the presidential term of office from six to five years, introduced a presidential 
age limit of 75 years and created the office of Ombudsman of the Republic.  
2.2.  Under the Constitution, executive power is exercised by the President of the Republic, who is 
also the Head of State and Gov ernment and Commander -in-Chief of the armed forces. The President 
is elected by universal direct suffrage (in two rounds of voting) for a five -year term, renewable once. 
He or she must be at least 40 and under 75 years of age at the time of election. Follo wing the most 
recent elections held on 9  April 2021, the incumbent President was re -elected for his 
fifth consecutive term.  
2.3.  The President of the Republic formulates and shapes national policy, has regulatory authority 
and may put any bill to a referendum. The President promulgates laws adopted by the 
National  Assembly within 15 days of receiving them unless he or she requests a second reading by 
the Assembly. The President is responsible for implementing laws passed by the Assembly and may 
refer laws to the Constitutional Council if he or she considers them to be unconstitutional.  
2.4.  The President of the Republic is assisted in his or her role by the Government, of which the 
Prime Minister and the other ministers are full members. The Government is responsible for assisting 
and advising the President in his or her duties. The President appoints the Prime Minister and the 
other members of the overnment on the Prime Minister's proposal. The President establishes their 
powers and can remove them from of fice. Members of the Government are answerable to the 
President.  
2.5.  Legislative power is held by the National Assembly, composed of 65 members elected for 
five-year terms. It has set its own agenda since the Constitution was amended in 2006. The 
Assembly alon e adopts laws by simple majority of the members present, except for organic laws, as 
defined by the Constitution, which must be adopted by an absolute majority of the National Assembly 
members present and can be enacted only after the Constitutional Counci l has declared them to be 
constitutional. Laws are proposed by the President of the Republic and the members of the National 
Assembly concurrently. The President and the members have a right of amendment. The 
Government submits periodic reports on its acti vity and administration to the National Assembly. 
The presidential coalition has held 57 of the 65 seats since the 2018 elections and the next legislative 
elections are scheduled for February  2023.  
2.6.  The judiciary is independent of the legislative and execut ive branches. Judicial power is 
exercised by the Supreme Court and other courts. Judges cannot be removed from office.  
2.7.  The Constitutional Council ensures that constitutional principles are respected. It monitors the 
constitutionality of laws and guarantees  fundamental human rights and civil liberties. It is the 
authority that regulates the functioning of governmental institutions and activities. The Council 
consists of six members who serve non -renewable eight -year terms, and the President of the 
Republic, the President of the National Assembly and the President of the Supreme Council of Justice 
each appoint two members. Half of the Council is renewed every four years.  
2.8.  The President of the Republic, the President of the National Assembly or 10 members may re fer 
laws to the Constitutional Council to verify their constitutionality. Anyone may challenge the 
constitutionality of any law before any court. The court hearing the matter must defer judgment and 
transfer the case to the Supreme Court. The Supreme Court  has one month in which to dismiss the 
case if it lacks merit, or otherwise refer it to the Constitutional Council.  
2.9.  The state judicial system coexists alongside the customary and Islamic legal systems. The 
judicial bodies include the Court of First Instanc e, the Court of Appeal and the Supreme Court. The WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  Court of First Instance is composed of specialized chambers, including the Civil Chamber and the 
Commercial Chamber, which has jurisdiction over commercial disputes.  
2.10.  The Court of Appeal, a higher court, hea rs appeals against the judgments of the Court of 
First Instance. It too is organized into specialized chambers; an indictments chamber is responsible 
for supervising first -instance court judges and another chamber tries criminal cases. The 
Administrative C ourt was created by the Law of 19  July 2009 and has the same level of jurisdiction 
as the Court of Appeal. Its decisions are subject to appeal before the Administrative Chamber of the 
Supreme Court. The Supreme Court is also a court of cassation, which is responsible for upholding 
the rule of law. Its president is appointed by the President of the Republic.  
2.2  Trade policy formulation and objectives  
2.11.  Under Decree No.  2021-106/PRE of 24  May 2021, on the appointment of members of the 
Government, the Ministry of T rade and Tourism is in charge of implementing and monitoring the 
Government's trade policy. To this end, it initiates and helps enforce trade legislation and 
regulations. It is responsible for preparing and implementing, in conjunction with the ministries 
concerned, trade policy instruments that include customs measures and technical barriers to trade, 
such as quality control measures.  
2.12.  The Ministry of Trade and Tourism is also in charge of negotiating, implementing and 
monitoring trade agreements and relati ons with international organizations that regulate trade. It 
cooperates with the ministries concerned to prepare, publish and monitor the trade balance and 
economic information. It is responsible, along with the relevant ministries, for regional integratio n 
policy, especially with respect to trade. The Djibouti Office of Industrial Property and Commerce, the 
National Tourist Board and the Djibouti Chamber of Commerce fall under the Ministry's authority.  
2.13.  Other m atters pertaining to trade policy, including th e investment regime and business 
climate, and sectoral policy are the direct responsibility of other departments which cooperate with 
the Ministry of Trade and Tourism. The Ministry of Foreign Affairs has a specific role in terms of 
treaties. The Secretari at of State for Investments and Private Sector Development works together 
with the Ministry of the Economy and Finance (which has responsibility for industry) to implement 
policy on the business climate, the promotion of investment and private sector devel opment.  
2.14.  The Secretariat of State ensures that the business environment is internationally competitive 
and favourable to private initiative. It does so by identifying administrative reforms to remove 
obstacles to a well -functioning private sector. It ensure s that investment procedures are 
straightforward, and leads negotiations on special benefits sought by investors. It also undertakes 
the necessary studies to make the legislative and regulatory framework more attractive and 
introduces all appropriate measu res to improve the investment climate. It proposes and introduces 
amendments to the Investment Code to this end, in collaboration with the relevant ministries. The 
Secretariat of State is in charge of the National Agency for Investment Promotion.  
2.15.  The Natio nal Trade Negotiations Committee (CNNC) was created in 2009 and meets to adopt 
positions on African Continental Free Trade Area (AfCFTA) negotiations and Common Market for 
Eastern and Southern Africa (COMESA) integration issues.  
2.16.  Consultations are held with  the private sector via the Djibouti Chamber of Commerce on an 
ad hoc  basis. The High Council for Public -Private Dialogue, established by decree in August  2015, is 
also tasked with creating a business environment in which the private sector can thrive and 
contribute to economic growth and job creation. It meets once every year as part of an annual 
public -private consultation forum, under the distinguished patronage of the President of the 
Republic, to discuss the situation in the private sector and its deve lopment prospects.  
2.17.  Trade policy is one of the core themes of Vision Djibouti 2035, the long -term development 
strategy document from 2013. Two of the strategy's five pillars – "a diversified and competitive WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  economy, with the private sector as a driver" – and "an active role in regional integration", are given 
over to it.1 
2.18.  The first of these two pillars aims to make Djibouti the "Lighthouse of the Red Sea" and 
Africa's trade and logistics hub. The goal is to exploit existing opportunities in various sectors,  
especially fisheries, tourism, logistics, new information and communication technologies (ICTs), 
financial services and the manufacturing industry, in which development would be bolstered by the 
necessary investment to mobilize water and renewable energy resources. With the diversification of 
the economy, new sectors would contribute to a sustained growth in exports, especially fishery 
products, tourism (increasing the number of tourists more than tenfold) and offshoring. The average 
annual growth rate for  exports would be 14 % and trade would reach around 132 % of GDP by 2035.  
2.19.  The second pillar, concerning regional integration, is based on the understanding that world 
trade is currently experiencing major growth, the building of regional trade blocs is accel erating and 
a significant part of global trade takes place in areas of regional integration. Djibouti intends to 
participate fully in guiding these changes, building subregional groups, fostering regional integration 
and championing globalization. Whether it is the Intergovernmental Authority on Development 
(IGAD), COMESA, the AfCFTA or the WTO, Djibouti wishes to be an active partner that participates 
in and benefits from trade liberalization, capital transactions and a better allocation of labour in order  
to increase its growth, productivity and competitiveness.  
2.20.  The development and reinforcement of the link between Djibouti and Ethiopia will lay the 
groundwork for regional integration, with a view to creating a single market encompassing Djibouti, 
Ethiopia , South Sudan, Somalia and Eritrea. In 2019, Djibouti, Eritrea, Ethiopia, Kenya and Somalia 
launched the Horn of Africa Initiative with the overarching goal of ensuring the rapid development 
of the subregion. The Initiative covers four areas: improving reg ional infrastructure links, promoting 
trade and economic integration, enhancing resilience and strengthening the development of human 
capital. TradeMark East Africa (TMEA) and the French Development Agency (AFD) signed a 
EUR 29.9 million (approximately USD  35.5 million) grant agreement to help make regional economic 
integration in the Horn of Africa more sustainable and inclusive. The funding comes from the 
European Union (EU), which delegated it to the AFD via the signing of a financing agreement worth 
a total of EUR  32 million.  
2.21.  Vision Djibouti 2035 is divided into five -year plans and "Strategies for Accelerated Growth 
and Employment Creation (SCAPEs)". The first, SCAPE  2015-19, covers a large part of the period 
under review and is structured around four st rategic areas: (i) competitiveness and the role of the 
private sector in driving the economy; (ii) development of human capital; (iii) public governance 
and strengthening of institutional capacity; and (iv) centres of regional and sustainable 
development. SCAPE has promoted major investments in ports, roads and railways to better connect 
Djibouti and Ethiopia. SCAPE  2015-19 has not been evaluated.  
2.22.  The current five -year plan is entitled "Djibouti Inclusion -Connectivity –Institutions" and aims 
to: (i) promote inclusive growth to tackle unemployment, in particular by improving vocational 
training in order to adapt the workforce to the needs of the economy; (ii) create and strengthen 
economic and trade networks at the national level; and (iii) improve government efficiency.  
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.23.  Djibouti is an original Member of the WTO. It is not a party to the plurilateral WTO Agreement 
on Government Procurement. On 5  March  2018, Djibouti accepted the 2014 Protocol of Amendment 
to insert the Trad e Facilitation Agreement into Annex 1A of the WTO Agreement. Djibouti is a party 
to only one joint initiative, the Joint Statement on Investment Facilitation for Development of 
10 December  2021 (WT/L/1130).  
 
1 The three other pillars are national peace and unity, good governance and consolidation of human 
capital, respectively.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  2.24.  Djibouti has not been involved in any WTO dispute settlement cases during the period under 
review.  
2.25.  Over this period, Djibouti submitted eight notifications to various WTO committees: the 
Committee on Trade and Development (WT/COMTD/N/51, 9  January  2017); the Committee on 
Trade Facilitation (G/TFA/ N/DJI/1, 3  July 2019 and G/TFA/N/DJI/1/Add.1, 24  February  2020); the 
Committee on Agriculture (G/AG/N/DJI/1, 4  May 2022); the Committee on Anti -Dumping Practices 
(G/ADP/N/1/DJI/1, 4  May 2022); the Committee on Trade -Related Investment Measures 
(G/TRIMS/N/2 /Rev.31/Add.3, 5  May 2022); the Committee on Safeguards (G/SG/N/1/DJI/1, 
5 May 2022); and the Committee on Rules of Origin (G/RO/N/239, 10  May 2022).  
2.3.2   Regional and preferential agreements  
2.26.  Djibouti is part of four regional blocs: COMESA, the Tripartite Free Trade Area (TFTA), the 
AfCFTA, IGAD and the Community of Sahel -Saharan States (CEN -SAD).  
2.27.  COMESA has been partially notified to the WTO (accession of Egypt and aspects relating to 
trade in goods). COMESA was notified to the WTO on 29  June 1995 under the Ena bling Clause but 
not under Article XXIV of the General Agreement on Tariffs and Trade (GATT). Since negotiations on 
services are ongoing, COMESA has not yet been notified under Article V of the General Agreement 
on Trade in Services (GATS). The other three  organizations mentioned are yet to be notified to the 
WTO.  
2.28.  At this stage, unlike the TFTA and AfCFTA, IGAD does not feature in the "list of regional trade 
agreements which have appeared in factual presentations and have not yet been notified to the 
WTO".2 IGAD is one of the eight regional economic communities recognized by the African Union. In 
order to lend it fresh impetus, IGAD's mandate was extended to economic cooperation and regional 
integration activities. It implements the regional integration age nda and has a regional trade policy. 
Like any regional economic community, it adapts to the continental integration context. Such 
communities are regarded as the cornerstones of the AfCFTA.  
2.29.  Furthermore, Djibouti was one of the eastern and southern African States that negotiated an 
Economic Partnership Agreement (EPA) with the EU. However, it is not part of the group of 
six countries (Comoros, Madagascar, Mauritius, Seychelles, Zambia and Zimbabwe) that concluded 
an interim agreement with the EU in 2007. The  agreement entered into force for all parties in 2013 
and remains open to other participants. Djibouti is among the COMESA countries that have not 
signed but have not yet withdrawn from EPA negotiations with the countries in the region.  
2.30.  A 2017 report3 by the Ministry of Trade presented a retrospective and equivocal yet positive 
account of Djibouti's regional integration efforts thus far and called for the establishment of a 
common market encompassing Djibouti, Ethiopia, South Sudan, Somalia and Eritrea. Th ese 
countries enjoy a trade facilitation programme aimed at improving harmonization of trade facilitation 
instruments and increasing competitiveness across the corridor.  
2.3.2.1   Common Market for Eastern and Southern Africa (COMESA)  
2.31.  Djibouti is an original member of COMESA. Over the period 2015 -22, COMESA concentrated 
its efforts on trade liberalization and facilitation, customs management, transport facilitation and 
support for agriculture, industry and energy. No progress has been made towards the creation of 
the COMESA Customs Union in recent years and Djibouti is in the process of aligning itself with the 
Customs Union instruments by transposing the Harmonized System (HS) 2007 currently used to the 
latest version, HS 2022; bringing itself into full compliance wi th COMESA's customs code, the 
Common Tariff Nomenclature (CTN); and implementing the COMESA Common External Tariff and 
CTN. Lastly, negotiations on the liberalization of priority services sectors are still under way within 
COMESA. The ad hoc  group held its  11th meeting in May  2022.  
 
2 In its latest version, WTO document WT/REG/W/165, 18 March 2022.  
3 Étude de l'impact de l'adhésion de Djibouti à la zone de libre -échange du COMESA, de l'IGAD, de la 
tripartite et la zone de libre -échange continentale , Ministry of Trade and Handicrafts, January 2017.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  2.3.2.2   Tripartite Free Trade Area (TFTA)  
2.32.  The TFTA aspires to become a customs union between three economic communities in eastern 
and southern Africa: COMESA, the East African Community (EAC) and the Southern African 
Development Communi ty (SADC). In 2015, Djibouti signed the TFTA Agreement in Sharm el -Sheikh, 
Egypt. In 2019, the TFTA secretariat organized a national awareness -raising workshop for the 
ratification of the Agreement. Djibouti takes part in technical working group meetings, and 
negotiations are still under way on rules of origin, trade remedies and tariffs. The Tripartite Working 
Group prioritized the signature, ratification and implementation of the Agreement before moving on 
to the second stage of the negotiations, on trade  in services, completion policy, intellectual property 
rights, trade and development cooperation and cross -border investment. Djibouti is expected to 
offer other TFTA member and partner States the benefits of the COMESA free trade area.  
2.3.2.3   African Continental  Free Trade Area (AfCFTA)  
2.33.  The AfCFTA brings together all eight African regional economic communities and 55 of the 
continent's 56 States, including Djibouti. It was founded in 2018. The Republic of Djibouti was among 
the first eight countries to sign the f ramework Agreement on 21  March  2018. It deposited its 
instrument of ratification on 11  February  2019 and the AfCFTA Agreement entered into force on 
31 May 2019. Djibouti has submitted its schedule of commitments for the five priority trade in 
services sect ors and is currently negotiating its final schedule. As for the schedule of tariff 
concessions, a working group has been set up to hold national consultations and a roadmap has 
been drawn up to guide work on the preparation and submission of the schedule. The group has 
held several working meetings.  
2.3.2.4   Intergovernmental Authority on Development (IGAD)  
2.34.  IGAD is the successor of the Intergovernmental Authority on Drought and Development 
(IGADD), which was created in 1986 by Djibouti, Ethiopia, Kenya, Somalia, Sud an and Uganda to 
combat the effects of recurrent droughts. It is headquartered in Djibouti. The organization was 
renamed in 1995 and its purview was expanded to cover economic cooperation and regional 
integration matters. It is active in the areas of: trad e; development of tourism, transport and 
information and communication technologies; integration of macroeconomic policies; and 
development of energy, industry and regional value chains. IGAD has carried out studies on the 
creation of a single window, the establishment of a joint technical committee and the drafting of 
bilateral agreements and procedural manuals as part of a programme to facilitate trade and transport 
along the Djibouti -Addis Ababa -Juba-Kampala corridor. It has developed a trade policy for the region 
and is currently devising a regional strategy concerning the AfCFTA.  
2.3.3   Other agreements and arrangements  
2.35.  Djibouti is eligible for unilateral preferences under the Generalized System of Preferences 
(GSP) from Australia; Canada; the EU; Iceland; Jap an; New  Zealand; Russian  Federation, 
Belarus  and Kazakhstan; Switzerland; T ürkiye; and the United  States. Djibouti is also eligible for the 
unilateral preference schemes granted to LDCs by China, Chinese  Taipei, the Republic  of Korea, 
the Kyrgyz  Republic and Morocco; the EU's "Everything But Arms" initiative; and the United  States' 
African Growth and Opportunity Act (AGOA). The country is engaged in discussions to increase 
exports of handicrafts and certain products within the AGOA framework, and technical  assistance is 
provided to build the capacities of those involved.  
2.4  Investment Regime  
2.36.  The purpose of the National Agency for Investment Promotion (ANPI), established in 
January  2001, is to create synergies among all stakeholders involved in the promotion an d 
development of the private sector. It takes the form of a public limited company in order to involve 
the private sector in its capital. The ANPI is placed under the supervision of the Secretariat of State 
for Investment and Private Sector Development.  
2.37.  The ANPI ensures the functioning of the single window that comes under its aegis. The single 
window platform hosts and provides services for 16 public and semi -public institutions. All the 
formalities and procedures required of investors are conducted in one  place, in less time and at a WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  lower cost. This platform also provides personalized services such as advice, logistical facilities and 
standard protocols. Representatives of the Djibouti Office of Industrial Property and Commerce 
(ODPIC) participate in the single window, as the Office is involved in administrative procedures 
through the registration of companies.  
2.38.  ODPIC, which is a public establishment under the supervision of the Ministry of Trade and 
Tourism, manages the Register of Commerce, which consolid ates and stores all information 
concerning natural and legal persons engaging in trade -related activities or possessing a commercial 
structure. These persons must be entered in the Register of Commerce to obtain a registration 
number as means of identifica tion. 
2.39.  The main reform concerning the registration of companies carried out during the review period 
was the implementation of the single window in March  2017.4 The single window enables founders 
of companies, whether domestic or international, to register  the company's articles of association, 
reserve a trade name, obtain registration with the Register of Companies, and obtain a business 
licence, in one place, at a cost reduced from DJF  137.5 to DJF  23. This registration system went 
online in 2019, and is scheduled to become fully virtual after the implementation of the electronic 
signature and remote payment features.  
2.40.  The ANPI, by means of the single window, has implemented the concept of the common 
company identifier (ICE), which allows for the assignment of a number identifying the company and 
its subsidiaries in a common and uniform way for all administrations. This number is an addition to 
the list of legal identification numbers, which include the  Trade Register  (RCS) number, the tax 
identifi cation number (NIF) and the National Social Security Fund (CNSS) number. Although it is 
effective for analysing the data relating to the activity, it does not replace the RCS number or other 
identification numbers required by the tax authority.  
2.41.  The ANPI is  also the main instrument for the promotion of investment in Djibouti. Its role 
goes beyond foreign investment. The purpose of the ANPI is to create synergies among all 
stakeholders involved in the promotion and development of the private sector, and to pr ovide them 
with a common platform for promoting Djibouti among investors, facilitating investment operations, 
and modernizing the regulatory framework and procedures. By the authorities' own admission, the 
ANPI still has insufficient financial and operatio nal resources to fulfil its institutional mission and role, 
which is detrimental to the full accomplishment of its tasks and performance.  
2.42.  The basic legislation on investment remains the Investment Charter of 1994, although certain 
elements of it were revis ed during the review period. The provisions of the Investment Charter were 
described in detail in the two previous reports.5 The Charter provides for two separate regimes 
depending on the amount of the investment project. Regime  A gives tax benefits in th e form of 
exemptions or abatements for 12  categories of economic, industrial or commercial activity involving 
a minimum investment of DJF  5 million and creating a minimum of 15  permanent jobs within a 
period of 18  months. Regime  B concerns companies of spe cial economic or social interest that make 
a minimum investment of DJF  50 million and create a minimum of 30  permanent jobs within a period 
of 18  months. The tax benefits granted under the Charter to these two regimes are detailed in 
annexed Table A2.1.  
2.43.  Foreign investment is authorized in all sectors except maritime and transit activities6, 
fisheries, retail trade, telecommunications, electricity, water, regular mail services, and salt, which 
are reserved for national investors. In addition, although farml and cannot be purchased by 
foreigners, it may be ceded for 99  years.  
2.44.  Regarding the international commitments undertaken by Djibouti, the most notable 
development during the review period was the deposit of its instrument of ratification of the 
convention establishing the International Centre for Settlement of Investment Disputes ( ICSID) on 
9 June 2020 with the World Bank, which is the depositary . This convention, to which Djibouti is the 
155th signatory, entered into force for Djibouti on 9  July 2020.  
 
4 By Service Note No. 001 -2017 of the National Agency for I nvestment Promotion (ANPI).  
5 WTO documents WT/TPR/S/189, 23 July 2006 , and WT/TPR/S/305, 17 September 2014.  
6 In these two sectors, a foreign investor must have a Djiboutian partner who owns the majority of the 
company's capital.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  2.45.  The convention represents an addition to the other multilateral and plurilateral obligations on 
investment undertaken by Djibouti, which include: the Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards (New York Arbitration Convention) (sin ce 1977); the 
International Arbitration Services Centre (CISA) (since 1984); the Multilateral Investment Guarantee 
Agency (MIGA) (since 2007); the Agreement Between the Government of the United  States and the 
Common Market for Eastern and Southern Africa Concerning the Development of Trade and 
Investment Relations (signed in October  2001); the Unified Agreement for the Investment of Arab 
Capital in the Arab States (signed in 1980); and the Agreement on Promotion, Protection and 
Guarantee of Investments amon g Member  States  of the Organi sation of the Islamic Conference  
(2002).  
2.46.  Djibouti is also party to five double taxation agreements (with Egypt, China, Malaysia, 
Switzerland and Yemen), and nine bilateral investment treaties (with Egypt, Malaysia, Switzerland, 
India, China, France, Kuwait, the Islamic Republic of Iran, and Türkiye, respectively).  
2.47.  The long -term development strategy document , Vision Djibouti 2035 , outlines the long -term 
objectives of this policy. In particular, it provides that, in or der to improve the quality of the business 
environment, the Government must:  
• guarantee the legal security of investors, through the court system, and the functioning 
of the justice system against the risks of expropriation and breach of contract;  
• and attra ct investors capable of creating linkage effects, transferring know -how, training 
the workforce, and developing new activities.  
2.48.  The Vision Djibouti 2035 strategy also provides for the following measures to be taken for 
this purpose:  
• the implementation of a  single window to facilitate business start -up formalities, which 
has been effective since 2017 (see above);  
• the adoption of legislation on monopolies to create conditions for healthy competition 
among economic operators;  
• the non -interference of the State in the establishment of private companies; and  
• the elimination of barriers preventing the establishment of foreign companies.  
2.49.  From a regional point of view, Vision Djibouti 2035 aims to establish strategic partnerships 
focused on private investment with ne w economic powers, such as China, Brazil, India, Türkiye, 
South Korea and the Gulf countries.  
2.50.  To implement these objectives, Djibouti firstly amended, on several occasions, its recent 
Commercial Code, in particular to strengthen the position of its minorit y shareholders (see below). 
It adopted two new legislative codes, namely a Civil Code (Law No.  003/AN/18/8ème L) and a Code 
of Civil Procedure (Law No.  004/AN/18/8ème L), both of which govern voluntary conciliation and 
mediation procedures, and also rules on deadlines for key judicial proceedings.  
2.51.  Djibouti also undertook more targeted actions to improve the business climate, by deliberately 
and explicitly modelling the reform of its legislation, during the review period, on the categories and 
subcategories of the World Bank "Doing Business" index (now discontinued) in order to improve its 
ranking. This policy bore fruit to a certain extent, as the country improved its ranking in the index 
after a series of reforms.  
2.52.  Law No.  190/AN/17/7ème L of 2017 granted an  exemption from the activity tax (from class 5 
to class 8) for the first three years, and a reduction of capital registration fees to DJF  10,000. The 
Government also facilitated and made more transparent the transfer of ownership, by reducing the 
fees for the registration of the first property purchase by an individual from a rate of 7 % to 3%, and 
the registration fees for all transfers and other real estate transactions stipulated in the General Tax 
Code from a rate of 10 % to 3% (Law No.  005/AN/18/8ème L). WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 26 - 
 
  2.53.  The reforms were also concerned with: the modernization of leasing7; the extension of the 
collateral that can be provided as security for a loan, and the protection of creditors guaranteed by 
the Securities Register and the Credit Register established at  the Central Bank of Djibouti8; and the 
creation of a non -possessory secured transaction system (Law No.  49/AN/19/8ème L of 2019).  
2.54.  Concerning investor protection, contract enforcement and the resolution of insolvency, Law 
No. 187/AN/17/7ème L on the order  for payment procedure in civil and commercial matters, facilitated 
the recovery of small claims which were difficult to enforce and involved complex procedures. The 
objective of the order for payment procedure is to obtain a writ of execution which makes it possible 
to appoint a bailiff to recover the claim by means of seizure, to which the debtor may not object.  
2.55.  In 2018, the measures to protect minority investors were consolidated through: a requirement 
for greater disclosure of transactions with interest ed parties; the strengthening of claims against 
interested directors; the expansion of access to information on companies prior to the process; the 
strengthening of shareholders' rights and their role in key company decisions; the clarification of 
ownershi p and control structures; and a requirement for companies to improve transparency.  
2.56.  Following all these reforms, the time limits for the enforcement of contracts before the 
competent courts decreased from 1,225 days to 695 days on average, according to the authorities.  
2.57.  The judicial reform aimed at improving investor protection was implemented through Law 
No. 182/AN/17/7ème L. This law divides the Court of First Instance into two chambers, namely the 
Civil Chamber and the Commercial Chamber, and determines th e powers of each chamber. In 
addition to the computerization of the two chambers, this law has enabled greater transparency and 
speed in the settlement of commercial disputes. This separation has also made it possible to ease 
the backlog in the workload of  the chambers, which had experienced a sharp increase in civil and 
commercial disputes for several years.  
2.58.  In 2017, the Government set a strict deadline of 72 hours for the registration of sales 
contracts with the tax authorities (Service Note No. 1023/DI/MB of the Ministry of the Budget), 
digitalized the land deeds of Djibouti City, and established, by Law No.  006/AN/18/8ème L, that all 
property transactions must be registered in the land register in order to be effective against third 
parties.  
2.59.  In 2018, by means of Decree No.  2018-145/PR/MB of the Ministry of the Budget, the 
Government established the National Conciliation Commission, a joint independent advisory body 
for settling disputes between taxpayers and tax and state administrations. It also instructed the 
Parliament to update and modernize the Law on land ownership (Law No.  006/AN/18/8ème L). This 
update includes, in particular, the incorporation of digitalization into the land title registration and 
land registration procedure, the upda ting of clauses that have become obsolete, and the updating 
of references to clauses of the Civil Code and the Code of Civil Procedure. In 2019, the Government 
facilitated, by means of Service Note No.  155/DDCF of 8  April 2019 of the Ministry of the Budget , all 
the steps prior to sales contracts which may be taken by sellers or buyers, namely, the verification 
of outstanding payments to tax offices, and the acquisition of the land conservation information 
sheet.  
2.60.  Djibouti has also implemented a project for a n integrated trade facilitation platform, Djibouti 
Port Community Systems, connected to the Djibouti Ports & Free Zones Authority (DPFZA). This 
project comprises three elements: a port community system; a trading community system; and a 
customs system. The  first two components of this platform have just been interfaced. The platform 
will combine with the single window so that there will be only one entry point, one electronic payment 
system and one paperless document system.  
2.61.  Furthermore, the period for the processing of building permits has been shortened (Order 
No. 2015-228/PR of the Ministry of Housing, Urban Planning and the Environment of 2015), and 
must not exceed 15 days from the date of application. A non -response during this period is now 
considered to be a tacit favourable decision.  
 
7 Law No. 183/AN/17/7ème L of 2017.  
8 Law No. 183/AN/17/7ème L as amended by Law No. 48/AN/19/8ème L of 12 April 2019.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  2.62.  Three other texts have respectively:  
• established requirements for the inspection and quality control of permanent structures 
and for the purchase of insurance for large -scale constructions (Decree 
No. 2017-141/MHUE of 16  April 2017 of the Ministry of Housing, Urban Planning and the 
Environment);  
• defined the skills and experience required to draw up architectural and structural plans 
and supervise construction work (Decree No.  2017-142/PR/MHUE of 16  April 2017 of the 
Minist ry of Housing, Urban Planning and the Environment); and  
• increased the level of skills required in this regard (amendment in 2018 to Article  2 of 
Decree No.  2017-142/PR/MHUE of 16  April 2017).  
2.63.  The state -owned company, Électricité de Djibouti  (EDD), undertook a number of actions 
including the implementation of an electronic platform aimed at facilitating the procedures for 
connection to the power grid by reducing the time limits to seven days. It also enabled companies 
to pay the advance on consumptio n three months after the installation of a new connection.  
2.64.  In its 2018 Systematic Country Diagnostic, the World Bank considered that, in addition to 
these important reforms, other key measures to enhance development of a competitive private 
sector in Djibo uti included: lowering the cost of production factors, particularly electricity and 
telecommunications, and reducing labour costs; further easing access to finance; improving 
conditions of competition; and reforming the tax system to make it more equitable  across 
companies.9 
2.65.  The latest available IMF Staff Report on the Article IV consultation (from 2019) also recognized 
that significant progress had been made in recent years in simplifying business creation, facilitating 
access to finance, protecting minor ity investors, and registering property. Nevertheless, the report 
encouraged the authorities to continue their efforts by, for example by strengthening contract 
enforcement and property rights.  
 
 
9 World Bank, Economic Transformation in Djibouti: Systematic Country Diagnostic . Viewed at: 
https://openknowledge.worldbank.org/handle/10986/31301 . WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  3  TRADE POLICY AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures, valuation and requirements  
3.1.  Since the previous Trade Policy Review of Djibouti, there have been no changes to 
the registration requirements for importers . Any natural or legal pers on (of Djiboutian or foreign 
nationality) wishing to undertake commercial activities, including imports, is subject to registration 
in the Register of Commerce1, and must register with the Directorate -General of Taxation to obtain 
an "importer's licence".  
3.2.  On 5 March  2018, Djibouti deposited with the WTO its instrument of acceptance of the Protocol 
concerning the Trade Facilitation Agreement . Although Djibouti notified the list of measures for the 
different categories (A, B and C), it has not yet indicated the implementation dates for categories  B 
and C .2 In February  2020, the country indicated that it required additional time to notify its definitive 
dates for category B provisions . It therefore requested the WTO Committee on Trade Facilitation to 
consider  extending the period for notification by Djibouti of its definitive dates for category  B 
provisions until 21  February  2021.3 Furthermore, in June  2022, the country indicated that it needed 
additional time to notify its definitive dates for provisions under category C of the Agreement . It 
requested an extension of the deadline granted for the notification of its definitive dates for 
category  C provisions until 31  December  2023.4 
3.3.  The authorities have indicated that, with a view to further str eamlining customs procedures, 
Djibouti acquired mobile scanners during the review period . Their use does not involve any additional 
costs for economic operators.  
3.4.  Law No.  140/AN/11/6ème of 8 December  2011 establishing a Customs Code continues to govern 
the majority of customs procedures . The Directorate of Customs and Indirect Duties is responsible 
for customs procedures and for  administering all taxes levied on imports, including the internal 
consumption tax (TIC), excise duty and VAT . The authorities have indicated that a project to create 
a website providing information on customs procedures and requirements is being implemented, 
with financing from the World Bank.  
3.5.  Customs formalities may be completed by importers or by an approved customs broker . 
Imports must be the subject of a customs declaration assigning them to a specific customs procedure  
through the Single Administrative Document (SAD), accompanied by commercial documents . 
However, the customs authorities may require other documents where necessary . Exemption from 
customs or excise duty or other levies does not release the party concerned from the obligation to 
make a customs declaration.  
3.6.  All import declarations have been made electronically since 2013 . Djibouti uses the 
ASYCUDA  World customs clearan ce system . Since the previous review, all Djibouti's customs offices 
have been computerized and interconnected . In the context of the current review, the authorities 
indicated that, on 29  March  2021, a new version of ASYCUDA World was installed and put int o 
operation . This new version operates like a single window system and is interconnected with, inter 
alia, the Ethiopian customs authority, free -zone operators, the tax directorate and treasury, the 
National Food Analysis Laboratory (LANAA), and the Djibou tian port system . Furthermore, a specific 
module for regional transit is able to manage the exchange of information on the movement of goods 
from or to Djibouti . Combined with the COMESA e -tracking system, the module could ensure better 
control of the move ment of goods.  
3.7.  The authorities have indicated that, in addition to the standard ASYCUDA World modules, 
others have been developed in Djibouti, including for declarations of vehicles, the management of 
exemptions, phytosanitary measures, the management of m anifests, and declarations of khat, as 
well as the movements of containers and goods between the different bonded areas.  
 
1 Law No. 134/AN/11/6ème L establishing a Commercial Code.  
2 WTO document G/TFA/N/DJI/1, 3 July 2019.  
3 WTO document G/TFA/N/DJI/1/Add.1, 24 February 2020.  
4 WTO document G/TFA/N/DJI/ 1/Add.2, 17 June 2022.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  3.8.  Djibouti does not currently use a risk management system for its customs clearance 
procedures . However, the authorities have indicated that there are plans to activate the risk 
management system incorporated in the ASYCUDA World software.  
3.9.  The Customs Code offers the possibility of removing goods in the following categories before a 
detailed declaration is  submitted : perishable g oods; dangerous goods ; arms and ammunition for the 
national armed forces and for foreign units covered by cooperation agreements with Djibouti ; 
newspapers and magazines ; and so -called "express" documents.  
3.10.  According to an evaluation of the average customs c learance time in 2022, the average time 
between the registration of a declaration and the issuance of an exit voucher has been estimated at 
three days . According to the authorities, the evaluation was carried out as part of a project financed 
by the World Bank, with a view to modernizing the Djiboutian government departments.  
3.11.  The Customs Code's provisions on customs valuation are aligned with those in the 
WTO Customs Valuation Agreement . However, indicative values (minimum values) still exist for a  
list of products in order to counteract under -invoicing . These include : household electrical goods, 
building and furnishing materials, food products, electronic appliances and clothing . The authorities 
have indicated that they are faced with numerous cases of unde r-invoicing.  
3.12.  On 12  June 2015, Djibouti deposited with the World Customs Organization its instrument of 
accession to the International Convention on the Harmonized Commodity Description and Coding 
System (Harmonized System, HS).  
3.13.  Djibouti has a mechanism for  the settlement of disputes arising from the application of 
customs legislation . Any economic operators who consider themselves injured may refer the case to 
the Director -General of Customs . If an economic operator is not satisfied with the decision at first 
instance, the remedies available include recourse to the National Tax Conciliation Commission, 
followed by the Commercial Chamber of the Court of Appeal . The authorities have indicated that, to 
date, no dispute settlement database has bee n created . However, a module is reportedly being 
developed.  
3.1.2   Rules of origin  
3.14.  Djibouti has not notified any non -preferential rules of origin to the WTO . According to the 
authorities, the country does not have any.  
3.15.  Annex 4 to the COMESA Treaty containing the protocol on rules of origin is the basis for the 
rules of origin granting COMESA members preferential treatment . In this context, Djibouti issues 
certificates of origin through the Ministry of Trade. The Chamber of Commerce of Djibouti is 
responsible for i ssuing certificates of origin for other trade agreements.  
3.1.3   Tariffs  
3.1.3.1   Internal consumption tax (TIC) as an applied MFN tariff  
3.16.  Djibouti does not officially have a customs tariff . However, in terms of its functioning, the 
internal consumption tax (TIC) is very s imilar to a customs tariff . It is therefore the subject of the 
present analysis . Djibouti uses the 2007 version of the Harmonized Commodity Description and 
Coding System (HS), with a tariff schedule consisting of 6,938 eight -digit lines . All rates 
are ad valorem . 
3.17.  Until 2021, TIC was levied at eight different rates (zero, 1 %, 2%, 3%, 5%, 8%, 13% and 
20%). However, the initial Finance law for the financial year 2022 established five bands (zero, 8 %, 
10%, 20% and 23 %). The simple arithmetic average of these ra tes was 18.2 % in 2022 (Table  3.1), 
compared to 21 % in 2013 . As in the previous review, the tariff on non -agricultural products 
(WTO  definition) is higher (simple average of 19.1 %) than on agricultural products (simple average 
of 11.6 %). The rate of 23 % is the modal rate (the most common) ; it concerns over 69 % of the total 
number of lines (Chart  3.1). WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  Table 3.1 Brief analysis of TIC, 2022  
 Number of 
lines  Simple average 
rate (%)  Range 
of rates (%)  Coefficient 
variation  
Total  6,938  18.2 0-23 0.4 
Harmonized System (HS)      
 Chapters 1 to 24  913 10.3 0-23 0.8 
 Chapters 25 to 97  6,025  19.4 0-23 0.3 
By WTO definition      
Agriculture  874 11.6 0-23 0.8 
 Products of animal origin  100  7.5 0-10 0.6 
 Dairy products  27 11.1 0-23 0.4 
 Fruit, vegetables and garden 
produce  218 7.7 0-23 0.9 
 Coffee and tea  28 20.7 10-23 0.2 
 Cereals and cereal 
preparations  117 4.1 0-23 1.3 
 Oilseeds, fats and oils  91 8.1 0-23 0.9 
 Sugar and confectionery  31 10.5 0-23 0.4 
 Beverages and tobacco  95 23.0 23 0.0 
 Cotton  9 23.0 23 0.0 
 Other agricultural produce  158 18.2 0-23 0.5 
Non-agricultural products  6,064  19.1 0-23 0.4 
 Fish and fish products  128 10.1 0-23 0.2 
 Metals and minerals  1,263  21.1 0-23 0.2 
 Chemicals  991 21.3 0-23 0.2 
 Wood, paper, etc.  368 19.3 0-23 0.4 
 Textiles  698 17.3 0-23 0.4 
 Clothing  264  9.9 0-10 0.1 
 Leather, footwear, etc.  236 19.9 0-23 0.3 
 Non-electrical machinery  702 17.6 0-23 0.5 
 Electrical machinery  398 17.8 0-23 0.5 
 Transport equipment  428 17.7 0-23 0.4 
 Other manufactures n.e.s.  564 22.6 0-23 0.1 
 Petroleum  24 23.0 23 0.0 
By ISIC sectora     
 Agriculture, hunting, forestry 
and fishing  342 10.8 0-23 0.9 
 Mining  101 20.2 10-23 0.3 
 Manufacturing  6,494  18.5 0-23 0.4 
By stage of processing      
 Raw materials  716 14.3 0-23 0.7 
 Semi-finished products  2,032  19.9 0-23 0.3 
 Finished products  4,190  17.9 0-23 0.4 
a International Standard Industrial Classification of All Economic Activities (Rev.2), excluding 
electricity, gas and water (one tariff line).  
Source:  WTO Secretariat calculations, based on data provided by the Djiboutian authorities.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  Chart 3.1 Breakdown of duties (TIC), 2022  
 
a Classification by WTO definition.  
Source:  WTO Secretariat calculations, based on data provided by the Djibouti authorities.  
3.18.  Using the ISIC (Rev.2) definition, the mining and quarrying sector is the most highly protected 
(with an average rate of 20.2 %), followed by manufacturing (18.5 %) and agriculture (10.8 %) 
(Table  3.1). 
3.19.  The structure of TIC continues to display mixed escalation, with average rates of protection 
of 14.3 %, 19.9 % and 17.9 % respectively for raw materials, semi -finished products and finished 
products . This mixed structure, with positive escalation from raw materials to semi -finished 
products, is found particularly in the paper, paper products, printing and publishing, and non -metallic 
mineral product industries, resulting in higher domestic pr oduction costs for finished products . The 
tariff escalation is positive, however, in the wood and wood product industries, and is negative in 
the textiles, clothing, chemicals and metal products, machinery and equipment industries, as well 
as in the basic metal industries (Chart 3.2).  
Chart 3.2 Escalation of TIC rates, 2022  
 
Notes:  The product groups are defined in accordance with the two -digit ISIC.  
Source:  WTO Secretariat calculations, based on data provided  by the Djiboutian authorities.  
7.6%
2.5%20.9%
0.1%69.0%
26.4%
10.2%29.2%
0.5%33.8%
4.9%
1.3%19.7%
0.0%74.0%
0%10%20%30%40%50%60%70%80%0%8%10%20%23%0%8%10%20%23%0%8%10%20%23%
TOTAL
(6,938 tariff lines)Agriculturea
(874 tariff lines)Non-agricultural productsa
(6,064 tariff lines)
0%5%10%15%20%25%
N/A
Unprocessed
productsSemi -processed
productsFinished
productsFood products, 
beverages and 
tobacco
Textiles and 
clothing
Wood and wood 
products
Paper, paper products, 
printing and 
publishing
Chemicals
Non-metallic 
mineral products
Basic metal 
industries
Metal products, 
machinery and 
equipment
Other 
manufacturingN/ATotal 
manufacturingAverage applied rate for the manufacturing sector
(18.5%)WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 32 - 
 
  3.1.3.2   Bound duties  
3.20.  Djibouti has bound all of its tariff lines and has not modified its bound rates since its previous 
Trade Policy Review.  
3.21.  Bound rates range from zero to 450 %. Duties on non -agricultural products are bound at rates  
from zero to 230 %, and on agricultural products from 2 % to 450 %. The simple average bound rate 
is 41.8 % (49.6 % for agricultural products and 40.3 % for non -agricultural products) ; around 98 % 
of tariff lines are bound at 40 %; three lines are bound at the ce iling rate of 450 %; and five lines are 
bound at zero.  
3.22.  Other duties and taxes have been bound at a ceiling of 100 %. 
3.1.4   Other charges affecting imports  
3.23.  In addition to TIC, imports are subject to VAT, excise duty, a special solidarity tax (ISS), a 
tax on petrole um products, a business licence fee, and a general solidarity tax (IGS).  
3.1.4.1   VAT 
3.24.  VAT is governed by the VAT law (Law No.  43/AN/08/6ème L of 2008 (as amended in 2015 and 
2022) introducing value -added tax) . Initially, VAT was intended gradually to replace TIC in  such a 
way that domestic fiscal pressure remained unchanged . In order to achieve these objectives, the 
authorities have indicated that the amendments of 2015 and 2022 lowered the tax threshold with a 
view to increasing the tax base and the yield on VAT . Furthermore, to increase the benefits of the 
reform, Djibouti plans to create an association of chartered accountants of Djibouti, and to establish 
a requirement for companies to keep their accounts with a management centre or a certified 
accountant.  
3.25.  Since 2015, locally produced goods and services, together with imports, have been subject 
to the 10 % standard VAT rate (7 % during the previous review), while the rate on exports of goods 
and services has been zero . The tax base for imports is the customs value p lus excise duty, while 
domestic products are taxed on the basis of the selling price.  
3.26.  The VAT law provides a list of goods (either imported or locally produced) which are exempt . 
The list includes mainly certain staple food products, agricultural equipment  and inputs, medicines, 
books and newspapers, and the social component of electricity consumption.  
3.1.4.2   Excise duty  
3.27.  Since the previous review, biodegradable plastic bags, certain food products (yoghurt, pasta 
and liquid milk), white spirit, printing paper and p etroleum jelly have been added to the list of 
products subject to excise duty . The authorities have indicated that the taxation of food products 
was intended to protect infant industries within the Djibouti economy.  
Table 3.2 Excise duty rates applied in 2013 and 2022  
Product  2013  2022  
Tobacco    
Manufactured tobacco  70% 70% 
Tobacco extracts and essences  70% 70% 
Alcohol  120%  120%  
Toilet waters containing alcohol  DJF 2,500/litre of pure 
alcohol  DJF 500/litre of pure alcohol  
Perfumes and perfume extracts containing 
alcohol  DJF 2,500/litre of pure 
alcohol  DJF 500/litre of pure alcohol  
Petroleum products    
Regular gasoline and premium gasoline  DJF 49.5/litre  DJF 49.5/litre  
Diesel  DJF 6/litre  DJF 6/litre  
Kerosene  DJF 14/litre  DJF 14/litre  
Lubricating oils, brake oil, grease  DJF 100/net kg  DJF 100/net kg  
Khat    
Khat DJF 561/gross kg  DJF 561/gross kg  WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 33 - 
 
  Product  2013  2022  
Mineral waters and non -alcoholic 
beverages    
Natural or artificial mineral waters  DJF 14/litre  DJF 14/litre  
Aerated water whether or not containing added 
sugar or other sweetening matter or flavoured  DJF 14/litre  DJF 14/litre  
Other non -alcoholic beverages  DJF 14/litre  DJF 100/litre  
Fruit and vegetable juices  DJF 160/net kg  DJF 40/net kg  
Biodegradable plastic bags  N/A DJF 300/net kg  
Yoghurt   DJF 100/kg  
Pasta  N/A DJF 40/net kg  
Printing paper excluding printing press paper  N/A DJF 200/net kg  
Liquid milk  N/A DJF 100/litre  
White spirit  N/A DJF 5/litre  
Petroleum jelly  N/A DJF 14/kg  
N/A Not applicable.  
Source:  Information provided by the authorities, Law No.  108/AN/00/4ème L of 29  October  2000 reforming 
the General Tax Code, and Law No.  142/AN/21/8ème L of 30  December  2021.  
3.1.4.3   Other internal taxes  
3.28.  The general solidarity tax (IGS) of DJF  150/kg is levied on locally produced and imported khat 
(DJF 100 at the time of the prev ious review), as well as the ISS of DJF  15 (DJF  50 at the time of the 
previous review) . Locally produced and imported khat is also subject to the 0.02 % levy in relation 
to the contribution to the African Union, a licence fee of DJF  200/kg, and tax for the yout h, sports 
and leisure fund at a rate of DJF  50/kg of khat.  
3.29.  Furthermore, a supplementary tax of 7 % is levied on the value of the patent of certain 
activities for the benefit of the Djibouti Chamber of Commerce and Industry.  
3.30.  A tax, which is unchanged since t he previous review, is levied on petroleum products at the 
following fixed rates : DJF 5/litre of A1 jet fuel ; DJF 32.13/litre of premium gasoline ; DJF 7/litre of 
regular gasoline ; and DJF  18.23/litre of diesel fuel.  
3.31.  The authorities have indicated the exist ence of a tax of 30% on the value of imported concrete 
reinforcing bars and rods under the Investment Code.  
3.1.5   Tariff preferences  
3.32.  Djibouti does not grant tariff preferences as it does not officially apply a customs tariff 
(Section  3.1.3.1).  
3.1.6   Duty and tax exemp tions  
3.33.  In general, exemptions and concessions are granted in the context of priority projects, 
particularly in relation to the promotion of economic infrastructure, under ratified international 
agreements (for example, the Vienna Convention), or pursuant to the provisions of the Investment 
Code ( Section 3.2.4) and those on free zones ( Section 3.3.2), or  under agreements with certain 
companies such as the railway company.  
3.34.  Djibouti continues to grant exemptions from duties and taxes on imports by fo reign military 
bases stationed on its territory . The conditional relief procedures provided for under the Tax Code 
include : transit ; temporary admission ; and customs warehousing . The processing or economic 
conditional relief procedures are as follows : inward processing ; outward processing ; and the bonded 
manufacturing procedure reserved for companies processing petroleum products, although this is 
not applied in practice.  
3.35.  The value of goods imported under the exemption schemes was around DJF  55.78  billion i n 
2020 (around 42 % of total imports of goods), compared with DJF  73.85  million in 2016.5 
 
5 INSTAD, Edition 2021.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  3.1.7   Import prohibitions, restrictions and licensing  
3.36.  Export prohibitions remain unchanged since the previous review . In general, prohibitions are 
those provided for in the international conventions signed by  Djibouti, namely, the Convention on 
International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Stockholm 
Convention and the Rotterdam Convention.6 
3.37.  Imports of the following products are prohibited : right-hand drive vehicles7, 
non-biodegradable plastic bags8, all wild species, their carcasses, skins and trophies, and used or 
new refrigeration appliances containing certain (specified) ozone -depleting substances.9 
3.38.  For transit via Djibouti, animals listed in Annex  I to the CITES or their products must be 
covered by a CITES export permit issued by the country of origin of the animals/products and by a 
CITES import permit issued by the country of  destination.10 
3.39.  The import of products on Lists  A(1) and (C) of the Annexes to the Montreal Protocol is subject 
to annual quotas determined and administered by the minister responsible for the environment, by 
means of a prior authorization granted subject to the opinion of the minister responsible for trade 
and in consultation with the National Ozone Committee.  
3.40.  In principle, a special authorization from the Ministry of the Environment is required for 
imports of toxic or hazardous substances specified in the international agreements ratified by 
Djibouti . The trans port, storage, sale and use of such substances are subject to terms and conditions 
approved by the Ministry . The authorities have indicated the difficulties experienced in effectively 
implementing these measures at the national level.  
3.41.  Imports of  cattle fee d still require authorization from the Ministry of Agriculture and Livestock . 
The Ministry of Trade and Tourism regulates and issues licences for imports of khat . Imports of 
medicines are subject to licences issued by the Ministry of Health . Imports of arm s and ammunition 
are subject to licences issued by the Ministry of the Interior.  
3.42.  Djibouti does not apply any quantitative restrictions on imports.  
3.1.8   Anti-dumping, countervailing, and safeguard measures  
3.43.  Djibouti has no domestic legal instruments on anti -dumpi ng, countervailing or safeguard 
measures, and has never imposed such measures . In 2010, the country notified the Committee on 
Anti-Dumping Practices that it had not established a competent authority to initiate or conduct an 
investigation within the meanin g of Article 16.5 of the Agreement .11 It also indicated, in 2022, that 
it had no specific legislation on anti -dumping or safeguard measures.12 
3.2   Measures directly affecting exports  
3.2.1   Customs procedures and requirements  
3.44.  The registration formalities applicable to imports of goods for commercial purposes generally 
also apply to exports ( Section  3.1). 
 
6 WTO document WT/TPR/S/159 , 1 March  2006.  
7 Order No. 97 -0760/PRE of 17 November 1997.  
8 Order No. 99 -0059/PR/MCI of 14 January 1999.  
9 Decree No. 2004 -0066/PR/MHUEAT of 22 April 2004.  
10 Decrees No. 2001-0098/PR/MHUEAT of 27  May 2001 approving the strategy and national action 
programme for the conservation of biodiversity and No.  2004-0065/PR/MHUEAT of  22 April 2004 on the 
protection of biodiversity.  
11 WTO document G/ADP/N/193/DJI, 13 August 2010.  
12 WTO documents G/SG/N/1/DJI/1 , 5 May 2022 , and G/ADP/N/1/DJI/1, 4 May 2022.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  3.2.2   Taxes, charges and levies  
3.45.  A tax of DJF 500/tonne is still levied on exports of salt . Moreover, a charge of DJF  400 is 
levied for a sanitary certificate for exports o f large ruminants (camels and cattle), and DJF 200 for 
small ruminants (sheep and goats).  
3.2.3   Export prohibitions, restrictions, and licensing  
3.46.  The main export prohibition measures in force in Djibouti have not undergone any significant 
changes since 2013 . They are implemented with the purpose of protecting human, animal and plant 
health, and conserving biodiversity, and in line with international conventions and agreements to 
which Djibouti is party . For example, pursuant to Decree No.  2004-0065/PR/MHUEAT of  
22 April 2004 on the protection of  biodiversity, exports of Djiboutian wood and of coral are banned.  
3.47.  A sanitary certificate issued by the Directorate responsible for livestock and veterinary 
services (DESV) is required for exports of cattle ( Section 3.2.2 ). 
3.2.4   Export promotion, finance, insurance and guarantees  
3.48.  Export support services are almost non -existent in Djibouti, owing to the scarcity of exported 
goods . The Djibouti Chamber of Commerce defends the interests of exporters of salt vis-à-vis the 
Government . A mineral ore port for exports of salt and salt by -products was inaugurated in 
June 2017 in Ghoubet . The country does not have an export promotion agency.  
3.49.  As at the time of the previous review, Djibouti has no government programme for financing, 
insuring or guaranteeing exports . Financing and insurance for the country's few exports are provided 
by regional or multinational institutions.  
3.50.  The African Trade Ins urance Agency grants export credit guarantees to cover political  risks. 
In addition, Djibouti belongs to the Islamic Corporation for the Insurance of  Investment and Export 
Credit, which provides insurance services against commercial and non -commercial risk s. 
3.2.5   Free zones  
3.51.  Free-zone companies are granted full exemption from direct and indirect taxes for a term of 
50 years .13 Since 2017, enterprises established in free zones that wish to sell their goods on the 
local market must set up a company or a fixed estab lishment under common law which is subject to 
the payment of duties and taxes on the importation of goods from free zones.14 
3.52.  In order to be admitted to a free zone, a company is required to select one of the legal formats 
proposed by Law No.  103/AN/04/5ème L (limited liability company, single -person business) or must 
be a branch . It must be engaged in industrial, commercial, financial or services activities, except for 
those that might endanger national security, the environment or health . Its head office m ust be set 
up within the free zone.  
3.53.  Companies operating in a free zone must employ at least 30 % of Djiboutian personnel by the 
end of their first year of operation, and at least 70 % by the end of the fifth year . In 2022, a total of 
175 companies registered  in free zones employed around 3,352 persons . The authorities have 
indicated that the free zones struggle to promote manufacturing activities in Djibouti . Currently, 
around 99 % of activities in free zones involve the provision of services . The only manufac turing 
activities carried out are assembly activities.  
3.54.  Djibouti's Ports and Free Zones Authority is responsible for administering and controlling the 
free zones . It approves requests for authorization from companies wishing to set up in a free zone . 
Howeve r, it was noted during the previous review that the Authority lacked autonomy, which 
 
13 Law No.  53/AN/04 of 17  May 2004 issuing the Free Zone Code, as amended by Law No.  41/AN/08 
of 28 December  2008 issuing the Finance Law for 2009.  
14 Finance Law No. 166/AN/16/7ème L establishing the initial budget of the State for the 
financial  year 2017.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  allegedly undermined its dynamism, particularly with regard to the promotion of activities within 
free zones.  
3.3  Measures affecting production and trade 
3.3.1   Incentives  
3.55.  Since Djib outi's previous Trade Policy Review, there has been no change in the framework for 
incentives . The main incentives are still those provided under the Investment Code (Table 3.3).  
Table 3.3 Tax exemptions under the Investment Code  
Investment Code  
Law No.  88/AN of 13  February  1984, amended by:  
- Law No. 58/94 of 1 6 October  1994 
- Law No.  143/AN/97 of 3 December  1997 
- Law No.  23/AN/08 of 1 3 December  2008 issuing the amended Finance Law:  
- Law No.  41/AN/08 of 28  December  2008 issuing the initial Finance Law for 2009  
Regime A (five -year term)  
Investment : 5,000,000 - 50,000,000  
Internal consumption tax throughout the duration of the project  
Regime B (ten -year term)  
Investment : >50,000,000  
- Internal consumption tax : seven years  
- Corporate tax : seven years  
- Property tax : seven years  
- Registration fees  
- Exemption from tax on profits reinvested after seven years  
Source:  Investment Code.  
3.56.  In 2014, the High Council for Public -Private Dialogue was set up in order to examine the 
constraints preventing the emergence of the private sector and to propose solutions.  
3.57.  The Djibouti Economic Development Fund (DJFED) continues to finance projects or 
programmes for the development of agricultural and livestock activities, fishing, tourism, services 
and small and medium -sized industries processing domestic raw materials . The authorities have 
indicated that around USD 48 million  have been dis bursed under these projects and programmes 
since 2014 . Aid is generally granted in the form of loans at preferential rates (between 5 % and 6 %). 
3.3.2   Standards and other technical requirements  
3.58.  In 2019, Djibouti adopted a new law establishing a legal framework fo r the national 
standardization and quality promotion system, as well as the corresponding development and 
approval procedures .15 The Law is intended to be consistent with the relevant provisions of the WTO 
Agreements on Technical Barriers to Trade and on S anitary and Phytosanitary Measures . It also 
provides for the creation of the Djibouti Standard s and Quality Agency (ADN), whose task will be to 
ensure the development and approval of standards, the management of metrology -related matters, 
and the assessmen t of conformity to standards . In January  2021, Law No. 100/AN/20/8ème L was 
adopted to establish operating conditions for the ADN . However, the ADN was not yet operational 
in June 2022. 
3.59.  At present, the Sub -Directorate of Quality Control and Standards, unde r the supervision of  
the Ministry of Trade, Industry and Handicrafts, is in charge, inter alia , of the preparation and 
publication of standards, certification of products and processes, quality assurance, testing, 
metrology, accreditation of laboratories, and participation in international standardization work and 
related activities . It also serves as the enquiry point and notification authority for the 
WTO Agreement on Technical Barriers to Trade (TBT) . The standardization system was described in 
the previ ous WTO  Secretariat report on Djibouti.16 
 
15 Law No. 33/AN/18/8ème L of 14 February 2019 adopting the national standardization and quality 
promotion system.  
16 WTO document WT/TPR/S/305 , 17 September  2014.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  3.60.  Standards are adopted by means of regulations . Under the law, the implementation of 
standards may be made mandatory by order of the minister responsible for trade if there are certain 
reasons that make such a measu re necessary, such as public order, public safety, the protection of 
health, the environment, human, animal or plant life, or archaeological treasures, or compelling 
requirements relating to business efficiency and consumer protection . However, no technica l 
regulations have been notified to the WTO.  
3.61.  The technical regulations adopted at the national level are concerned with:  
• the enrichment of wheat flour for human consumption;  
• the enrichment of vegetable oil for human consumption;  
• the labelling of pre -packaged foodstuffs;  
• the regulation of bottled water for human consumption ; and 
• the regulation of the import and marketing of iodized salt.  
3.62.  The Sub -Directorate of Quality Control and Standards controls conformity, in conjunction with 
the laboratory of the Djibouti Study and Research Centre (CERD) . It issues marketing licences and 
certificates of  conformity with Djiboutian technical regulations for the products concerned, following 
analyses carried out by CERD.  
3.63.  The metrology system remai ns almost non -existent in Djibouti . A legal metrology system, 
including a laboratory, has reportedly been established with the assistance of the United Nations 
Industrial Development Organization (UNIDO) in order to control and calibrate measuring 
instrume nts belonging to retailers and industrialists.  
3.64.  No Djiboutian agency is a member of the International Organization for Standardization (ISO) . 
Djibouti is a member of the African Organisation for Standardization (ARSO) . It is not party to any 
mutual recognit ion agreement (MRA) . To date, no accreditation system has been established.  
3.65.  As in the previous review, Djibouti has not submitted any notification to the WTO regarding 
its standardization regime or its accreditation and certification procedures.  
3.3.3   Sanitary a nd phytosanitary requirements  
3.66.  The Sub -Directorate of Quality Control and Standards is the enquiry point and the notification 
authority for the WTO SPS Agreement . However, no notification to this effect has been made to 
the WTO.  
3.67.  The import or export of anim al products requires the submission of a sanitary certificate issued 
by the Directorate responsible for livestock and veterinary services (DESV) . Order 
No. 2000-0727/PR/MAEM and Order No.  2000-0728/PR/MAEM of 23  September  2000 regulate the 
marketing of imp orted or local animal products . The inspection criteria have been determined and 
take into account the specific chemical and microbiological characteristics of the products.  
3.68.  With regard to  packaging and labelling , Decree No. 2012 -225/PR/MDC  defines the gen eral 
provisions on the identity of foodstuffs, their composition and nutritional characteristics, their origin , 
as well as the safety conditions relating to their use . Moreover , Law  No. 28/AN/08/6ème L of 
21 December  2008 on protection, fraud control and c onsumer protection provides for the publication 
of regulatory texts concerning the production and marketing of food products, packaging and 
labelling requirements, methods for determining hygiene specifications, and hygiene conditions in 
production and sto rage facilities.  
3.69.  In accordance with the above -mentioned legislation, if there is a known risk, an order may 
prohibit the manufacture or marketing of food products for a period not exceeding one year . In such 
cases, warnings and precautions for use may be widely disseminated . In the event of an animal 
disease outbreak, measures are taken immediately by ministerial order . For example, Order WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  No. 2007-0193/PRE/ MS was adopted in 2007 to combat avian flu, creating a steering committee for 
the project to combat a vian flu.  
3.70.  The minister responsible for trade or any minister concerned may send warnings to 
manufacturers or retailers and ask them to bring the products they are selling into conformity with 
the safety rules.  
3.71.  Within the Ministry of Trade, the National Cod ex Alimentarius Committee (CNCA) is tasked 
with looking into matters relating to Codex  Alimentarius standards, mainly by giving its opinion on 
the possibilities for their adoption as  Djiboutian standards, and with promoting Djibouti's 
participation in the Codex bodies.17 
3.72.  The Ministry of Agriculture, Livestock and Fisheries, and more particularly the DESV, is the 
authority responsible for controls relating to SPS standards . According to the authorities, samples 
and controls are systematically carried out for food products, animals and plants . However, it 
appears that the majority of control activities are concerned with food products and live animals 
(particularly for export) . The National Food Analysis Laboratory (LANAA) supports the DESV by 
carrying out microbiological and physico -chemical analyses of water and other food products . The 
fees payable for food inspections range from DJF 3.5 to DJF 30/kg of the product inspected, and 
amount to DJF 20,000 per container of edible oil or sugar.  
3.73.  Furthermore, the inspectors undertake inspections on the domestic market . In this context, 
the controls focus in particular on aspects such as labelling, expiry date and conservation status . 
Contracts for the analysis of food products are also concluded with hotels and res taurants.  
3.74.  LANAA has been ISO 17025 :2005 accredited since 2020 . It has had a contract for analysis 
purposes with France's veterinary services since 2010 . The authorities have not indicated the content 
of this contract . However, they have stated that LANAA o utsources the inspection of pesticides and 
chemical characteristics of foods to certain French laboratories.  
3.75.  Since 2006, the regional cattle export centre in Damerjog has been operational . It serves as 
a quarantine area for cattle intended for export.  
3.3.4   Comp etition policy and price controls  
3.3.4.1   Competition policy  
3.76.  Djiboutian legislation on competition prohibits any form of concerted action, agreement, 
express or tacit understanding or coalition among economic operators with the aim or potential effect 
of preventin g, restricting or distorting competition, as well as any abuse of dominant position.18 
3.77.  The law does not cover state -owned enterprises or practices that ensure technical progress 
without compromising competition for a large proportion of the products concer ned. The exclusion 
of state -owned enterprises from the scope of competition legislation appears to have contributed to 
the crowding -out of the private sector in Djibouti, and the low quality and high costs of public 
services for individuals and companies, particularly in the areas of electricity and 
telecommunications.  
3.78.  The Directorate of Internal Trade, Competition and Fraud Control is responsible for 
implementing government policy for the regulation of  competition .19 Most of its activities involve 
raising awareness of regulations relating to competition and consumer protection.  
3.79.  Djibouti takes part in the work on introducing a regional competition policy within the  COMESA 
framework . The authorities have indicated that they have planned to establish a competi tion 
commission in accordance with the COMESA competition regulations.  
 
17 Decree No.  2011-0204/PR/MDC creating the National Codex Alimentarius Committee (CNCA).  
18 Law No. 28/AN/08/6ème L on protection, fraud control and consumer protection.  
19 Law No. 55/AN/14/7ème L of 25 June 2014 establishing the structure of the Ministry of Trade.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  3.3.4.2   Price regulation and controls  
3.80.  In principle, Djiboutian legislation encourages the free setting of prices through market forces 
alone . However, it empowers the Government, acting on a proposal by the minister responsible for 
trade, to take legal and regulatory measures to regulate prices in sectors/situations where freedom 
of competition is limited, as is the case with monopolies or ongoing supply problems . Postal and 
telecommunications , electricity, water and urban transport services are therefore regulated by the 
State.  
3.81.  The price of bread continues to be regulated by means of state aid for bakeries (preferential 
electricity rates, exemption from profits tax) . The Government and economi c operators collaborate 
on the price structure.  
3.82.  If there are excessive price increases or in unusual circumstances, the Government may also 
take temporary measures to regulate the prices of staple goods.  
3.83.  The Ministry of Trade publishes a monthly list of wh olesale and retail prices for seven staple 
goods (rice, flour, oil, sugar, milk, pasta and kerosene), which are exempt from TIC and VAT . An 
inspection unit ensures that these prices are strictly applied . According to the authorities, an 
inspection unit con ducts daily operations to ensure the strict application of these prices.  
3.84.  The Central Procurement Agency for Essential Medicines and Materials (CAMME) is responsible 
for approving the methods used to set the selling price of pharmaceuticals ; for determining  the 
transfer price of essential medicines and the purchasing procedures ; and for organizing stock 
management.20 
3.3.5   State trading, state -owned enterprises, and privatization  
3.85.  Djibouti has not made any notification to the WTO regarding any state -trading enterpr ises 
within the meaning of Article XVII of the GATT . However, as was the case in the previous review, 
the State owns shares in a number of enterprises operating in all sectors of the economy, some of 
which play important roles in the trade in goods and ser vices concerned.  
3.86.  Some 47 public establishments continue to operate in Djibouti (Table 3.4), particularly in the 
agri-food industry, financial services, telecommunications, and transport and storage services . They 
pose major challenges to the country's publ ic finances . A diagnostic study was launched in 2012 
with a view to enhancing the quality and efficiency of state services . A code on good governance of 
state-owned enterprises was adopted in 2016 . However, the IMF considered in 2019 that this code 
was poo rly implemented, particularly due to the lack of performance contracts from state -owned 
enterprises, and limited resources available to the Ministry of Finance to monitor their financial 
situation.21 
3.87.  According to the IMF, the authorities nevertheless carri ed out audits of several large 
state-owned enterprises, indicating the efforts made to strengthen their governance and supervision 
in order to reduce costs, increase the quality of public services and control debt accumulation.  
3.88.  Certain state -owned enterpri ses continue to enjoy monopolies or exclusive rights . These 
include:  
• Électricité de Djibouti (EDD), for the transport and distribution of electricity 
(Section  4.2.2);  
• Office national des eaux et de l'assainissement de Djibouti (ONEAD), for the distribution 
of water;  
 
20 Decree  No. 2004-0059/PR/MS  of 13 April 2004 and  Decree No. 97 -0039/PR/SP of 3  April 1997 on the 
publication of, and procedure for updating, the list of essential medicines, and Order No.  2003-0526/PR/MS  of 
8 July 2003.  
21 IMF, 2019 Article IV Consultation. Viewed  at: 
https://www.imf.org/fr/Publications/CR/Issues/2019/10/23/Djibouti -2019-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-48743 . WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  • Djibouti Télécom, for telecommunications (Section 4.4.1) ; 
• Radio télévision de Djibouti (RTD), for radio and television;  
• Imprimerie nationale, for printing for the print media;  
• Office de voirie, for waste disposal ; and 
• National Food Analysis Laboratory  (LANAA), for food safety inspections.  
3.89.  On 11 July 2021, the Government announced that it would open up the capital of Djibouti 
Télécom to a private minority shareholder as a strategic partner ( Section 4.4.1).  
Table 3.4 State -owned enterprises engaged in commercial activities  
Entity  Activity  Share of 
capital held by 
the State  Progress of privatization 
project  
Société industrielle des eaux 
minérales d'Ali -Sabieh  
(SIEMAS)  Sale and export of 
mineral water   Provisionally at a standstill  
Cimenterie d'Ali -Sabieh  Cement  100%  In operation  
Imprimerie nationale de 
Djibouti  Printing  100%  Financial situation being 
stabilized with a view to 
granting a concession or 
management contract  
Compagnie nouvelle de 
commerce (CNC)  Production of 
ceramics   Privatization under way 
(awaiting buyers)  
Central Procurement Agency 
for Essential Medicines and 
Materials (CAMME)  Purchase and sale of 
medicines  100%  In operation  
Djibouti Economic 
Development Fund (DJFED)  Financing  100%  In operation  
Électricité de Djibouti (EDD)  Electricity  100%  In operation  
Office national des eaux et de 
l'assainissement de Djibouti 
(ONEAD)  Water  100%  In operation  
Djibouti Télécom (DT)  Telecommunications, 
fixed and mobile 
telephony  100%  In operation  
Djibouti  International 
Autonomous Port  (PAID)  Port services  100%  In operation  
Djibouti International Airport 
(AID)  Airport  100%  In operation  
Djibouti -Ethiopia Railway  Rail transport  Owned by the 
two States 
(50%)  In operation  
Poste de Djibouti (PD)  Postal services  100%  In operation  
Djibouti  International 
Hydrocarbons Company  
(SIHD)  Petroleum  100%  In operation  
Société immobilière de 
Djibouti (SID)  Urban housing  100%  In operation  
Radio télévision de Djibouti 
(RTD)  Audiovisual  100%  In operation  
Source:  Decree No. 99-0077/PR/MFEN of 8 June 1999 and Decree No. 2001-0191/OR/MEFPP of 
23 September  2001. 
3.90.  Law No. 130/AN/96/3ème L of 1 5 February  199722 lays down the terms and conditions for the 
privatization of  state holdings, enterprises, assets or activities . However, the privatization 
programmes launched two decades ago have struggled to produce the expected results . The 
authorities have indicated th at Law No. 139/AN/21/8ème L on restructuring public administrative 
 
22 Law of 15  February  1997 establishing the terms and conditions for the privatization of state holdings, 
enterprises, assets or activities.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  establishments was adopted in 2022, and provides for the restructuring of public bodies of an 
administrative nature . However, it has not yet been implemented.  
3.91.  The privatization programmes h ave involved, in particular, Électricité de Djibouti, ONEAD, 
Djibouti International Airport, and Djibouti Télécom ( Sections 4.2.2 and 4.4.1).  
3.3.6   Government procurement  
3.92.  The legal framework for public procurement in Djibouti has not undergone any significant 
change and continues to be governed primarily by Law No. 53/AN/09/6ème L of 1 July 2009. It applies 
to contracts signed by the State (ministries, industrial and commercial public establishments, 
state-owned companies and local authorities) for the purpose of  carrying out works, supplying goods 
or providing services.  
3.93.  Decree No.  2010-0083/PR/SGG established the National Government Procurement 
Commission (CNMP) as the lead agency in relation to government procurement procedures . Its scope 
of competence includes issuing opinions on the procurement proceedings of a contracting 
department (no contract that falls within the purview of the CNMP may be signed without its 
agreement) ; conducting technical or financial audits ; verifying and certifying the acceptance of th e 
work, supplies or services and other deliverables ; proposing government procurement policies ; and 
amending the law . Decree No. 2018-174/PR/MEFI was promulgated in 2018 and is intended to 
expand the purview of the CNMP, inter alia to include oversight of the process for awarding 
public -private partnership (PPP) contracts.  
3.94.  Bidders must be in good standing with the departments responsible for tax and parafiscal 
matters . Failing this, they must have posted security deemed sufficient by the entity or accountan t 
in charge of collecting payment . Foreign bidders must present a sworn declaration confirming that 
they have complied with their tax and parafiscal obligations.  
3.95.  The contracting department determines the general administrative and technical conditions 
applicable to each specific procurement contract . An open call for bids remains the preferred 
procedure for  procurement . However, the authorities have not provided statistics on the value of 
government procurement contracts disaggregated by procurement method . The contracting 
department and the CNMP may make use of the restricted bidding procedure if they find that the 
service can only be provided by a limited number of suppliers, while at the same time ensuring that 
there is proper competiti on. For negotiated contracts, a bidder may be selected without any 
competition, but this procedure may only be followed, inter alia , in an emergency or when the needs 
can only be met by specific intellectual property rights.  
3.96.  The main provisions of the Gove rnment Procurement Code do not apply to contracts for an 
amount below DJF 5 million , which only require a purchase order.  
3.97.  In the open bidding procedure, calls for tender are usually published in the newspaper 
La Nation  and, w here appropriate, advertised on  other media . In addition, above a certain amount 
determined by regulation or at the discretion of the CNMP, a call for tender may also be published 
internationally Generally speaking, most contracts financed by foreign donors have been awarded 
following c alls for tender published internationally.  
3.98.  The legislation provides for preferential margins of up to 7.5% for bids by legal or natural 
persons of Djiboutian nationality . In addition, preferential margins up to a maximum of 4% may be 
granted to foreign bid ders which undertake to subcontract at least 20% of the amount of the services 
to Djiboutians . Bids which propose to use supplies of Djiboutian origin may also receive a maximum 
15% preferential margin.  
3.99.  The CNMP organizes the public opening of bids, to whi ch all bidders are invited . The 
contracting department is responsible for evaluating bids . As such, in addition to the stated price, it 
may take into account quality, quantity, supply modalities, service offered, the supplier's ability to 
fulfil the condit ions of the government procurement contract and any other criterion directly relating 
to the procurement contract . The CNMP must render its opinion on the choice of successful bidder, 
government procurement projects or modifications to contracts and, more generally, on any 
document or issue submitted to it, within one month of its opinion having been sought . Pursuant to WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 42 - 
 
  the Code, it must notify bidders whose bids have not been selected and inform them of the reasons 
if they so request.  
3.100.   Public procurement disputes may be settled before the Dispute Settlement Committee . Any 
party considering themselves to have suffered injury as a result of a decision by the Dispute 
Settlement Committee is entitled to claim damages for the injury sustained throug h arbitration or 
before the Administrative Tribunal.  
3.101.   Djibouti is neither a party nor an observer to the Agreement on Government Procurement 
and has not announced its intention to accede to it.  
3.102.   In 2017, Djibouti adopted Law No. 186/AN/17/7ème L of 29 May on  public -private 
partnerships, the procedures for which are similar to those for public procurement . The Law applies 
to PPPs concluded by the State, state agencies and enterprises (public administrative 
establishments, industrial and commercial public estab lishments, state-owned enterprises, 
semi-public companies where the majority of capital is held directly or indirectly by the State) and 
local authorities.  
3.103.   A PPP Unit has reportedly been in operation since January  2021. It assists the Government 
in defining and regulating policy in relation to PPPs, whilst also offering advice and assistance to 
public bodies and local authorities, as well as state -owned establishments and enterprises, in 
identifying, evaluating, concluding and monitoring PPP contract s. A PPP Regulatory Commission was 
established under the PPP Law but is not yet operational . In addition, the Law provides for the 
establishment of a PPP Fund to finance preliminary studies prior to the launch of a PPP.  
3.104.   Pursuant to the 2017 Law on Public -Private Partnerships, award procedures are governed by 
the principles of freedom of access, equality of treatment for bidders, procedural transparency and 
efficiency, as well as confidentiality of proposals and tenders.  
3.105.   The main methods for awarding a contr act and selecting a private partner are open bidding 
processes, competitive dialogue, negotiated procedures and unsolicited proposals . Competitive 
dialogue is employed when : (i) the contracting authority is unable to determine by itself and in 
advance the technical means capable of satisfying its needs ; (ii) the contracting authority is unable 
to specify by itself and in advance the legal or financial make -up of the project ; or (iii) the degree 
of technical, legal or financial complexity of the project mean s that only certain operators are capable 
of delivering the services expected . A negotiated procedure is an exceptional procedure applicable 
to defence - or security -related projects . An unsolicited proposal is only permitted under certain 
conditions set ou t in the Law and can not be submitted for projects for which the contracting authority 
has already launched studies.  
3.3.7   Intellectual property rights  
3.106.   Djibouti is a contracting party to a number of regional and international intellectual property 
rights (IPR) tr eaties and agreements, including the Convention Establishing the World Intellectual 
Property Organization (WIPO), the Beijing Treaty on Audiovisual Performances, the Marrakesh 
Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visual ly Impaired or 
Otherwise Print Disabled, the Paris Convention for the Protection of Industrial Property, and the 
Berne Convention for the Protection of Literary and Artistic Works . According to the authorities, 
Djibouti acceded to the Bangui Agreement Rela ting to the Creation of an African Intellectual Property 
Organization (OAPI) in 1994, but withdrew in 2001 . On 23 June 2016, Djibouti deposited its 
instrument of accession to the Patent Cooperation Treaty.  
3.107.   The WTO has not been notified of any contact point  in relation to the  Agreement on 
Trade -Related Aspects of Intellectual Property Rights  (TRIPS) . In addition, Djibouti has not yet 
accepted the Protocol Amending the Agreement, which gives permanent effect to the provisions in 
the Doha Declaration on the TR IPS Agreement and Public Health . These provisions concern 
compulsory licences for certain essential medicines.23 
 
23 WTO, Amendment of the TRIPS Agreement, viewed at: 
https://www.wto.org/english/tratop_e/trips_e/amendment_e.htm . WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  3.108.   The legislative framework for IPRs has not changed during the period under review.  
3.109.   Law No. 50/AN/09/6ème L of 1 9 July 2009 on the protection of  industrial property covers the 
granting and registration of patents, layout  designs (topographies) of integrated circuits, trademarks 
for products or services, trade names, geographical indications, appellations of origin, as well as 
industrial designs . According to Decree No. 2011-079/PR/MDCC implementing Law 
No. 50/AN/09/6ème L on the protection of industrial property, the Djibouti Office of Industrial Property 
and Commerce (ODPIC), acting under the authority of the Ministry responsible for ind ustry,  is the 
body charged with implementing the law on the protection of industrial property rights . Its tasks 
include examining and approving applications for intellectual property titles .24 To this end, it holds 
the national registers of patents, layout  designs of integrated circuits, industrial designs and 
trademarks . Law No. 159/AN/12/6ème L establishes the fees charged by ODPIC, including fees for 
the registration of intellectual property titles . These range from DJF 30,000 for registering a 
certifica te for temporary protection at exhibitions to DJF 122,500 for, inter alia , registration of a 
patent for invention or integrated circuit layout -design .25 Trademarks accounted for most of the 
intellectual property rights registered during the period under re view (Table 3.5).  
Table 3.5 Statistics on approved trademarks, patents and industrial designs, 2014 -20  
 2014  2015  2016  2017  2018  2019  2020  
Registered trademarks  
By residents  27 34 47 42 43 23 31 
By non -residents  320 353 339 286 309 284 312 
Total 347 387 386 328 352 307 343 
Registered patents  
By residents  0 5 0 5 1 3 0 
By non -residents  4 2 16 1 4 3 5 
Total 4 7 16 6 5 6 5 
Registered industrial designs  
By residents  0 1 5 3 1 1 0 
By non -residents  2 1 2 0 2 0 5 
Total 2 2 7 3 3 1 5 
Source:  Information provided by the authorities.  
3.110.   Djiboutian industrial property law provides that a competent court may grant a compulsory 
licence for a patent three years after the patent was granted or four years after the date the patent 
application was filed . This course of action may only be followed if the patent holder exercises their 
right in an "abusive" manner and where national security, health or nutritional concerns or the 
development of vital  sectors of the economy so require . However, the authorities have never had 
recourse to compulsory licensing in Djibouti.  
3.111.   The protection of marks, including collective marks and certification marks, is conferred 
through registration with ODPIC . A mark is r egistered from the date of filing the application for a 
period of 10 years, renewable indefinitely . The registration can be renewed on request with payment 
of the relevant renewal fee . The registration should be renewed in the six -month period prior to its  
expiry.  
3.112.   As with marks, only industrial designs duly filed with and registered by ODPIC enjoy 
protection pursuant to the industrial property law.  
3.113.   The provisions of Law No. 154/AN/06/5ème L of 2 3 July 2006 on the protection of copyright 
and related rights p rotect the rights of authors of all original literary, scientific or artistic works, 
regardless of genre, form of expression, merit or purpose . This protection shall not be subject to 
any formality . Authors have the right to exploit their work themselves o r to license its use for the 
purpose of deriving pecuniary gain, where applicable . For protected works, protection of economic 
rights lasts for the lifetime of the author and for 50 years after their death . Anonymous or 
pseudonymous works are protected for  50 years after the date on which the work was lawfully made 
 
24 ODPIC. L'ODPIC en bref , viewe d at: http://www.odpic.dj/odpic -en-bref. 
25 Official Journal of the Republic of Djibouti, Law establishing ODPIC fees, viewed at:  
http://www.ministere -
finances.dj/LOISODPIC/SITE%20OFFICIEL%20DE%20LA%20REPUBLIQUE%20DE%20DJIBOUTI_fichiers/texte.
htm. WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 44 - 
 
  available to the public .26 However, if the author's identity is disclosed or no doubts exist as to their 
true identity prior to the end of this period, protection shall extend for a term that is the same as 
that granted for economic rights.  
3.114.   The Djibouti Office for Copyright and Related Rights (BDDA) , which reports to the Ministry 
of Culture, is charged with enforcing copyright on Djiboutian territory . It represents copyright owners 
in connection with the production, interpretation and performance of musical works, the 
interpretation and performance of audiovisual works, and the reprographic reproduction of works . 
Its main task is to monitor the use of copyright -protected works, to negot iate the terms for their 
use, to collect royalties and distribute them to the rights holders, and to bring legal proceedings if 
royalties are not paid.  
3.115.   The law also recognizes the related rights of performers and of phonogram producers . It 
provides for the establishment of a social and cultural fund within the BDDA for creators and their 
heirs. The authorities have however indicated that this fund has not yet been set up.  
3.3.7.1   Sanctions  
3.116.   As with intellectual property legislation , there has been no major change  to the sanctions 
system during the period under review . Djibouti's industrial property legislation provides that any 
infringement of the rights of a patent -holder or of the owner of a certificate of registration for 
integrated circuit layout -designs (topo graphies), industrial designs or trademarks for products or 
services, constitutes an act of counterfeiting . The law prohibits counterfeiting, trade or any other 
transaction in counterfeit goods, and sets out criminal sanctions for counterfeiting and piracy . Civil 
proceedings may also be initiated by any interested party, whether a natural or legal person, 
association or syndicate, in particular, by producers, manufacturers or traders.  
3.117.   The holder of the intellectual property right may initiate any administra tive or legal 
proceedings with a view to ending the production of counterfeit goods or to preventing infringement 
if this is imminent . Proceedings may be instituted by the BDDA in the case of copyright, by the 
beneficiaries of economic rights or the holder  of a licence for the copyright before the court in the 
actual or chosen place of domicile of the complainant . For foreign complainants, however, legal 
proceedings may be brought before the court in the place where ODPIC is located.  
3.118.   Pursuant to the law on the protection of copyright and related rights, in the event that 
counterfeit goods are imported or exported, the customs administration may, at the request of the 
right holder, intercept suspected counterfeit goods at the border.  
3.119.   The sanctions provided fo r in the event of infringement of industrial property rights may 
involve a term of imprisonment of five years and a fine of DJF 10,000,000 or one of these 
two penalties in the case of patents for inventions and industrial designs ; two years of imprisonment  
and a fine of DJF 2,000,000 in the case of product or service trademarks.  
3.120.   The courts may order that the counterfeit goods and all the materials and tools used to 
create or manufacture them be confiscated or destroyed, that the filing and registration be a nnulled, 
that the verdict the verdict be published, either in full or an extract thereof, in a 
Djiboutian  newspaper at the expense of the unsuccessful party and may enjoin, under penalty of a 
fine, infringing acts.  
3.121.   Pursuant to the law, the penalties applic able to counterfeiters also apply to persons who 
have knowingly received, exhibited, put on sale or sold, introduced or exported products deemed to 
be counterfeits.  
 
 
 
26 The L aw is expected to be amended to extend the duration of copyright protection to 70  years after 
the author's death.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, forestry and fisheries  
4.1.  The arid climate and semi -desert soil of Djibouti are ill -suited to agriculture. Agricultural 
activity, in the rare instances it does take place, involves oasis crops, semi -nomadic extensive 
livestock farming and market gardening around urban areas, particularly Djibouti city, which is home 
to almost 80 % of the population.  
4.2.  For all the above reasons, agriculture plays an economically marginal role in Djibouti, 
accounting for only 1.12 % of total employment in 20201 and 1.5 % of GDP in 2019. Aside from 
fisheries and livestock products, the country imports almost all its food, including fruit and 
vegetables.  
4.1.1   Crop production  
4.3.  According to the Vision Djibouti 2035  long-term development strategy document of 2013, only 
2% of the 10 0,000 hectares of irrigable land are currently under cultivation, with domestic fruit and 
vegetable production covering only around 10 % of needs. However, despite the challenging growing 
conditions, the country does have agricultural potential, particularl y in market garden crops, 
fruit-tree growing and forage crops.2 
4.4.  The situation as set out in the Vision Djibouti 2035  document has changed little, as can be seen 
in Table 4.1 below, which shows agricultural production, acreage and the number of farms durin g 
the period under review. The table shows a slow but regular increase in production, acreage and 
number of farms, although this progress is not commensurate with the country's demographic 
growth.  
Table 4.1 Agricultural production, acreage and number of farms, 2016 -20  
Crop year  2015/16  2016/17  2017/18  2018/19  2019/20  
Agricultural production (tonnes)  8,344  8,964  9,412  9,694  9,896  
Area under cultivation (ha)  1,396  1,441  1,543  1,548  1,620  
Farms (number)  1,888  1,953  1,982  1,992  2,081  
Source:  Agriculture and Forestry Directorate.  
4.5.  Djibouti also imports nearly all the cereals and oils it consumes. Because of security issues in 
Ethiopia and Sudan, the Republic of Djibouti has ceased agricultural production on farms outside its 
territory. Law No.  139/AN/21/8ème L on restructuring public administrative establishments led to the 
dissolution of the Djiboutian Food Security Company, which had previously managed these farms. 
Its rights and public service obligations have been centralized within the Ministry of Agriculture.  
4.1.2   Livestock breeding  
4.6.  Livestock breeding is the country's main agricultural activity (0.9 % of GDP of a total agricultural 
contribution to GDP of 1.5 %). It provides more than a third of the income of rural populations in 
Djibouti, as well as contributing to calorie intake through on -farm consumption. Despite 
cross-breeding efforts, particularly involving exotic and dairy breeds, as well as notable 
improvements in veterinary sur veillance thanks to the State's proactive approach, animal breeding 
conditions became more challenging during the period under review as a result of global warming, 
repeated droughts and the degradation of soils and grazing land.  
4.7.  These livestock numbers ar e sufficient to meet the meat -consumption needs of the rural 
population through on -farm consumption, but cover only 10 % of the needs of the urban population. 
Meat consumption in Djibouti during the period under review is shown in Table 4.2 below.  
 
1 Statistical Yearbook 2021, National Institute of Statistics of Djibouti (INSTAD).  
2 Renforcement de la Productivité des Productions Végétale s et Animales à Djibouti , FAO, 2021. 
Viewed  at: https://www.fao.org/3/cb2719fr/CB2719FR.pdf . WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 46 - 
 
  Table 4.2 Meat consumption by animal species, 2016 -20 
(By head of animal)  
Species  2016  2017  2018  2019  2020  
Sheep/goats  120,775  127,199  164,167  131,189  132,469  
Camels  529 1,653  2,313  2,855  1,570  
Cattle  34,000  41,673  47,903  36,677  37,303  
Total 155,304  170,525  214,383  170,721  171,342  
Source:  Directorate for Livestock and Veterinary Services.  
4.8.  Djiboutian farmers export a larger number of animals (Table 4.3), particularly to the 
Arabian  Peninsula, with the support of the export assistance centre (veterinary and customs) 
established by the authorities.  
Table 4.3 Livestock exports by animal species, 2016 -20 
(By head of animal)  
Species  2016  2017  2018  2019  2020  
Sheep/goats  156,772  595,396  551,260  666,139  288,274  
Camels  16,285  40,909  52,339  80,410  29,795  
Cattle  55,825  14,040  3,733  4,915  12,951  
Total 228,882  650,345  607,332  751,464  331,020  
Source:  Directorate for Livestock and Veterinary Services.  
4.9.  Trade policy within the livestock sector primarily involves:  
• the export of live animals, with the establishment of a regional quarantine centre and an 
animal port (exclusively for livestock exports);  
• a stockyard and abattoir to supply the domestic market;  
• transf erring management of the abattoir and stockyard to private partners in order to 
reinvigorate red meat exports;  
• the establishment of an accredited food analysis laboratory in order to monitor foodstuffs 
of animal origin.  
4.10.  In addition, the Government has laun ched 16 projects in the area of nomadic livestock 
breeding, involving improved pastoral water supply, regeneration of grazing lands and sanitary 
surveillance, oasis agriculture through the revitalization of family gardens, and the creation of small 
areas o n wadi terraces for nomadic pastoralists affected by drought.  
4.1.3   Forestry  
4.11.  The Republic of Djibouti's forested or wooded areas are small and ecologically fragile. Local 
species, including acacia, are well suited to the harsh climatic conditions. In recent deca des, they 
have been highly exposed to repeated droughts and to the phenomenon of desertification. They are 
in constant decline owing to both natural factors (lack of regeneration, invasive plants) and human 
factors (over -exploitation to provide wood for co oking, grazing and charcoal). These forests are 
exploited on a small scale and are the subject of various protection programmes in coordination with 
the FAO.  
4.1.4   Fishing  
4.12.  Fishing accounted for 0.14 % of total employment in 20203 and 0.2 % of the Djiboutian GDP 
in 2019. While fishing is important from a socio -economic standpoint for coastal populations, it is a 
small -scale activity, hampered by a general dietary preference in Djibouti for meat and by the lack 
of financing for the construction of downstream infrast ructure, including cold chains and processing 
 
3 Statistical Yearbook 2021, National Institute of Statistics of Djibouti (INSTAD).  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  and canning plants. There was, however, a limited but regular increase in catch during the period 
under review, as indicated in Table 4.4 below.  
Table 4.4 Fisherie s production, 2016 -21 
(Unit: tonnes)   
2016  2017  2018  2019  2020  2021  
Production  1,801  2,022  2,101  2,269  2,322  3,089  
Source:  Fisheries Directorate.  
4.13.  The objective of 10,000 tonnes of fisheries products by 2020 set out in the 
Vision  Djibouti  2035 long-term strategy document of 2013, with fisheries resources estimated at 
47,000 tonnes, is a long way from being reached. However, work has been undertaken during the 
period under review, at both the domestic and international levels.  
4.14.  At the domestic level, w ork to revise the 2002 Fisheries Code and its implementing decree 
was completed in 2017 as part of the Project to Reduce Vulnerability in Coastal Fishing Areas 
(PRAREV), financed by IFAD. The relevant documents have been completed and endorsed by all 
stake holders but are not yet official.4 This new Fisheries Code will give the Republic of Djibouti a 
binding legal instrument for the sustainable management of the fisheries resources within its waters 
as well as for the conservation of marine ecosystems and b iodiversity, whilst also enabling it to 
effectively combat illegal, unreported and unregulated (IUU) fishing and to meet its international 
obligations as a coastal State, flag State and port State.  
4.15.  This project also focuses on the sustainable management of  fisheries resources and on 
involving fishers in such resource management via advisory councils.  
4.16.  At the international level, Djibouti signed Memorandums of Understanding covering the 
fisheries sector with both Somaliland and Puntland in 2012. Their purpose  is to enable 
Djiboutian  vessels to fish in the waters under the jurisdiction of these two States. They also enable 
fisheries products to be sold on regional and international markets.  
4.17.  There is no bilateral agreement governing relations between Djibouti an d Yemen on fisheries 
matters. However, Yemen and Djibouti are both members of the Regional Organization for the 
Conservation of the Environment of the Red Sea and Gulf of Aden (PERSGA) and of the Subregional 
Centre for Combatting Marine Pollution in the Gu lf of Aden.  
4.18.  From a regulatory standpoint, the sector continues to be governed by Law No.  187/AN/02/4 
of 9 September  2002 establishing the Fisheries Code and its implementing texts, in particular Decree 
No. 2007-0014/PR/MAEM of 17  January  2007 implementing the Law establishing the Fisheries Code.  
4.19.  The Fisheries Code takes a precautionary approach, basing itself on the following 
three  principles:  
• fishing in Djiboutian waters is reserved for vessels registered in Djibouti (national fleet) 
and for Djiboutian nat ionals;  
• only artisanal fishing is permitted in Djiboutian waters;  
• trawling is prohibited in Djiboutian waters, except for scientific purposes.  
 
4 Preliminary draft fisheries law and preliminary draft implementing decree, in the document entitled 
Projet ACP FISH II - Renforcement de la Gestion des Pêches dans les pays ACP. Review and updating of the 
legal framework and texts governing fisheries curre ntly in force in the Republic of Djibouti. Final technical 
report. COFREPECHE, 18 November 2013.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 48 - 
 
  4.20.  Foreign vessels are thus prohibited from fishing in Djiboutian waters. Industrial fishing is also 
prohibited. The Fisheries Code also defines artisanal fishing as commercial fishing carried out on foot 
or on vessels without refrigeration equipment. It distinguishes three categories of artisanal fishing:  
• enhanced artisanal fishing, on vessels measuring over 9  m in length (Category A);  
• small-scale artisanal fishing, on vessels of up to 9  m in length (Category B);  
• traditional fishing, either on foot or on floating structures that do not have to be registered 
(Category C).  
4.21.  Fishing activities in Djiboutian w aters, whether for professional or recreational purposes, 
require a fishing licence. The conditions for the granting and renewal of all categories of fishing 
licence are set out in Order No.  2007-0036/PR/MAEM of 2007 on fishing licences.  
4.22.  The Vision Djibout i 2035  long-term strategy document of 2013 also highlights opportunities 
for export, particularly to Ethiopia, Europe and the Gulf states, whilst expressing the wish for fishing 
to remain purely artisanal. This artisanal fisheries model will be based on th ree elements. The 
first element involves more intensive exploitation of the entire Djiboutian continental shelf, with 
incentives for the acquisition of new longer -range vessels. The second element concerns the 
exploitation of small pelagic fish (short -lifespan fish: anchovy, horse mackerel, mackerel, etc.). The 
third and final element involves experiments with new fisheries, in particular molluscs and 
crustaceans, through the promotion of aquaculture.  
4.23.  The Ministry has made significant efforts to implement t hese three elements focusing on the 
promotion of the fisheries sector. Accordingly, the Ministry secured financing from IFAD to improve 
fisheries infrastructure, with new fisheries equipped with refrigeration (cold chambers, ice machines) 
in Obock and Tadj ourah. Given that fish is a perishable foodstuff, the Ministry has initially undertaken 
to improve infrastructure at the ports where fish is landed before implementing the three elements 
of the model at a later date.  
4.24.  Since the establishment of the Fisherie s Directorate in 2007, the Ministry has carried out 
numerous reforms in order to enhance the availability of fisheries products on domestic and 
international markets. To this end, the Ministry of Agriculture has, through various projects and 
programmes, un dertaken the following actions:  
• improvements in fishery product preservation with the construction of a fishing port in 
Djibouti city and new fisheries in Obock and Tadjourah;  
• the establishment of a National Food Analysis Laboratory in order to facilitate the import 
and export of foodstuffs;  
• the drafting of orders governing various procedures.  
4.25.  The ultimate objective of the Ministry of Agriculture is to export products not only to 
neighbouring countries but also to the European Union. To this end, it is seek ing financing to:  
• establish a digital traceability system for the fisheries value chain;  
• raise economic operators' awareness of trading opportunities (COMESA, IGAD);  
• build the capacity of economic operators;  
• train inspectors on the various international export procedures for fisheries products;  
• improve the analysis capacity of the National Food Analysis Laboratory.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  4.2  Mining and energy  
4.2.1   Mining  
4.26.  With the exception of the Lake Assal salt pans, Djibouti does not currently exploit any natural 
resourc es. Salt production has shifted from artisanal to semi -industrial production. Initially, 24 firms 
had a presence on this market (with provisional licences), but the lake is currently exploited by a 
single firm, Salt Investment, a joint venture between a pr ivate Djiboutian company and a 
Chinese  firm. It holds an exclusive contract and produces industrial salt as well as sodium bromide. 
Production stands at approximately 110,000 tonnes per year and employs 2,000 people, equivalent 
to 0.08 % of total employment .5 For the most part, this salt is exported to Ethiopia.  
4.27.  In addition, the Vision Djibouti 2035  long-term development strategy document dating from 
2013, states that there is evidence of the presence of significant resources such as perlite, bauxite, 
natur al gas, copper, zinc, iron and aluminium, as well as gold and hydrocarbons.  
4.28.  Against this backdrop, the Government had been planning to take steps to initiate the swift 
exploitation of minerals that have already been located, and to launch prospecting activ ities for 
underground resources on sites where showings have been identified. To this end, a mining code 
was adopted in 201 8. 
4.2.2   Energy  
4.29.  The Vision Djibouti 2035  long-term strategy document sets Djibouti the task of becoming a 
trade and logistics hub and a pla tform for hydrocarbon redistribution for the Horn of Africa and 
COMESA. A second objective stated in this document is a green transition towards a target of 
100% renewable energy by 2035.  
4.30.  Djibouti's energy policy is aimed at reducing consumer energy costs,  safeguarding the 
country's energy supply and contributing to international efforts to combat climate change through 
cuts in greenhouse gas emissions.  
4.31.  The Republic of Djibouti does not yet have either oil resources or a refinery. The country 
imports 100 % of the hydrocarbons it consumes from abroad . Imported petroleum products are 
refined finished products ready for distribution. Two broad groups of products may be distinguished:  
• fuels: premium unleaded petrol, diesel, jet A1 (JP -5 and JP -8 and avgas), keros ene and 
heavy fuel oil ; 
• lubricants: engine oils, transmission oils, industrial oils (compressor, gear, hydraulic, etc.) 
and special products (brake oils, etc.).  
4.32.  The Djibouti International Hydrocarbons Company (SIHD) is the sole importer of 
hydrocarbons to Djibouti (Order No.  2015-794/PR/MERN). It is tasked with importing hydrocarbons 
and their derivatives at the best prices. It is also involved in hydrocarbon storage and re -export 
activities.  
4.33.  Although its activities are currently restricted to importing, th e company plans to expand into 
storage and the export of refined petroleum products to countries throughout the subregion 
(COMESA countries in the Horn of Africa) in the short and medium term. The SIHD does not currently 
have any storage infrastructure and  subcontracts the storage of its imports to the Horizon company. 
In addition, it has contracted hydrocarbon distribution to three companies: NOC, RUBIS and UCIG. 
The sales prices of hydrocarbons are set by the State.  
4.34.  The SIHD conducts calls for tender for its hydrocarbon supplies.  
 
5 Statistical Yearbook 2021, National Institute of Statistics of Djibouti.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  4.35.  The following tables show fuel imports by value (DJF) and volume (litres).  
Table 4.5 Import of petroleum products by value (DJF  2016 -20) 
(By value in DJF)   
2016  2017  2018  2019  2020  
All petroleum products       
Premium  752,524,426  929,497,157  1,249,758,687  1,010,176,602  579,754  
Oil 1,080,000,000      
Jet A1  8,286,855,893  12,628,992,064  12,888,485,272  11,383,821,896  7,215,844  
Diesel  11,885,772,485  14,046,561,481  16,799,698,358  16,137,571,176  9,545,822  
Fuel oil  780 000 000  .. .. .. .. 
.. Not available.  
Source:  SIHD.  
Table 4.6 Import of petroleum products by volume (litres, 2016 -20) 
(In litres)   
2016  2017  2018  2019  2020  
All petroleum 
products  242,978,702  207,972,956  210,920,482  390,112,115  188,183,026  
Premium  9,947,647  9,489,557  11,251,843  9,278,061  9,703,625  
Oil 16,620,604  20,496,472  18,469,757  18,446,688  20,235,609  
Jet A1  80,602,968  59,457,919  57,571,430  64,626,886  54,424,647  
Diesel  119,500,965  100,687,439  117,072,478  103,041,394  82,416,762  
Fuel oil  16,306 518  17,841,569  6,554,974  28,719,286  21,402,383  
Source:  SIHD.  
4.36.  75% of petroleum products come from the Near and Middle East (90 % for premium petrol), 
with COMESA countries recently gaining an increased share.  
4.37.  Three private oil companies operating on the market (Rubis, UCIG and NOC) are accredited 
to import lubricants. Th ese three companies have exclusive control over the market for fuel 
distribution and re -export (diesel, petrol, Jet A1), in particular to Somaliland.  
4.38.  In order for the country to ensure a higher level of supply security for petroleum products, 
whilst also c apturing the regional market, the SIHD has begun a major project to construct a 
petrochemical complex in Damerjog, around 10  km south of the capital. The site will comprise a 
2.5 million tonne refinery, a power station with an installed capacity of 2.3 meg awatts, a cement 
works (600,000 tonnes per year), a shipyard with a metallurgical plant, the landing site for 
a 767 km gas pipeline from Ethiopia (to receive gas from Ogaden destined for export), and an oil 
storage depot with a storage capacity of 300,000  m³. 
4.39.  Electricity production is currently undertaken solely by Électricité de Djibouti (EDD), a 
state-owned enterprise. This is, however, merely a de facto  monopoly, since Djibouti adopted Law 
No. 88 AN of 1  July 2015 ( septième législature ), regulating the activities of independent electricity 
producers. This law opened the electricity production sector to competition. Only one independent 
producer (Red Sea Power) has obtained a licence and it is not yet operational. It has already signed 
a contract to sell its electricity to EDD, with oversight from the Ministry of Energy. Self -generators 
of electricity are obliged to resell their surplus to EDD at negotiate d rates. Transmission/transport 
and distribution remain under EDD monopoly.  
4.40.  Key data on electricity production during the period under review can be found in Table  4.7. 
Table 4.7 Electricity production and con sumption 2016 -20 
 
2016  2017  2018  2019  2020  
Number of customers  56,062  58,708  62,177  65,568  69,315  
Production in MWh  537,340  566,859  580,856  605,150  627,111  
 of which imported energy  449,510  508,198  526,034  .. 501,759  
Consumption in MWh  422,808  461,141  469,358  502,244  517,035  
Commercial rate of return (%)  79 81 81 83 82 
Average selling price per KWh (DJF)  56 56.4 54 39 51 
.. Not available . 
Source:  EDD/DE . WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  4.41.  From this table, it can be seen that the percentage of the population connected to the electrical 
grid remains low (69,000 customers out of a population of almost 900,000), despite a regular upward 
trend. A very significant portion of distributed electricity (over 75 %) has, since 2012, been imported 
from Ethiopia via a transmission  line capa ble of delivering up to 85  MW. This energy is hydroelectric, 
and supply levels vary, with Ethiopia interrupting delivery if the water level in its dams is low.  
4.42.  EDD generates its own electricity at two ageing thermal power stations with a capacity of 
100 MW. As with imported electricity, this is distributed via a grid with a high rate of technical loss. 
The World Bank deems consumer prices to be high6 in comparison with the regional average. There 
is a steady upward trend in electricity consumption, leading  to supply shortages and power cuts. For 
this reason, the port, airport and military bases have their own generators. Studies are currently 
underway into the financing by the World Bank and the African Development Bank (USD  75 million) 
of a second transmis sion line, which would allow Djibouti to import up to an additional 220  MW. 
4.43.  The country has major renewable energy potential in the form of wind, solar and geothermal 
energy. The Vision Djibouti 2035  strategy of 2013 foresaw an ultimate goal of 100 % renewa ble 
energy production.  
4.44.  French, Spanish, Emirati and US companies have plans to invest, or have already invested, 
in the renewable energy sector through the following projects:  
• a solar power plant in Grand Bara (23  MW), currently being negotiated with AMEA POWER 
(UAE);  
• two solar power plants with storage in Obock (1  MW) and Tadjourah (2  MW), managed by 
the Ausar -Equity joint venture (France -India)/EDD;  
• a wind farm in the Ghoubet region (60  MW) built by the Spanish firm Siemens Gamesa; 
and 
• a biomass power plant (50  MW) near Damerjog, built by the US firm CR Energy 
Concepts  LLC. 
4.3  Manufacturing  
4.45.  In 2019, the manufacturing sector accounted for 8.5 % of formal employment. Moreover, a 
recent survey of the informal sector conducted by the Government of Djibout i indicated that in 2020, 
only 12.5 % of informal activities related to processing, with the remainder concerning trade and 
services.  
4.46.  The contribution of manufacturing activities to the GDP of Djibouti is smaller still, standing at 
0.3% for 2019. This figur e is the sum of the two manufacturing subsectors included in Djibouti's 
national accounts: manufacturing of food products and wood (0.2 %) and "manufacturing branches" 
(0.1%). Taking a broader definition of the manufacturing sector, water, gas and electrici ty 
production could be added, as per Djibouti's Statistical Yearbook. They accounted for 1.1 % of GDP 
in 2019.  
4.47.  The authorities have analysed the key factors limiting the development of the manufacturing 
sector and placed them in four categories:  
• Constraints  related to the legal and institutional framework: paucity of public and private 
institutions specializing in promotion, support and assistance in the area of industrial 
development, and an investment code that is more favourable to large firms than SMEs; 
very limited opportunities for technical and vocational training; a thriving informal sector 
that competes unfairly with the formal sector, and absence of a formal framework for 
dialogue between the public and private sectors; poor coordination and lack of  synergy 
between public institutions involved in promoting the industrial sector, an absence of 
 
6 Economic Transformation in Djibouti:  Systematic Country Diagnostic , World Bank, 20 18 (in English 
only). Viewed at: https://openknowledge.worldbank.org/handle/10986/31301 . WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  reliable information and detailed statistics on the industrial sector, and a mismatch 
between education and employment.  
• Cost-based constraints: high production costs (energy, labour, water, etc.), a limited 
domestic market, excessive competition from imports from certain emerging countries, a 
poorly trained, low -productivity and costly workforce (three or four times more expensive 
than in certain dynamic neighbou ring countries), a lack of dedicated industrial estates and 
the poor performance of certain upstream sectors such as agriculture and fishing.  
• Constraints relating to the failure to exploit natural resources: low rate of usage of natural 
resources (mineral,  fisheries, salt and animal), which hampers the development of a 
denser economic ecosystem; limited industrial linkages (subcontracting) and high cost of 
imported raw materials.  
• Other structural constraints: harsh climatic conditions, lack of entrepreneurs hip 
(awareness about investing in industry), hesitancy and weak industrial investment on the 
part of operators, and previous failed industrial ventures (dairy production, 
Tadjourah  water, livestock feed plant, etc.).  
4.48.  Production activities (domestic and for eign) take place in the following fields: furniture, reams 
of paper and other office consumables, construction materials (cut stones, synthetic marble, tiles, 
paint, bricks, cement, galvanized and aluminium metal sheets, nails and insulating material), 
biodegradable plastic bags and other accessories, setts, milk, preserved fish and blue crab, aerated 
beverages, ice -cream, pastrycooks' products, purified water production, bottling and distribution of 
LPG gas such as propane and butane, chalk and pens, print ing works and salt production.  
4.49.  Existing free zones have to date only attracted packaging firms but the Government has high 
hopes for the new free zone currently being developed with its Chinese private partner, 
China  Merchant Ports Holdings.  
4.50.  The Vision Dji bouti 2035 long -term strategy document sets out even more ambitious targets 
for the manufacturing sector. Its share of GDP should increase from 2.7 % in 2013 to 5.8 % in 2022 
and ultimately to 7 % by 2035. The mid -point objective for 2022 does not appear to h ave been met. 
An industrial policy and strategy are currently being prepared.  
4.4  Services  
4.4.1   Telecommunications services  
4.51.  As well as being a logistical hub, Djibouti is a telecommunications hub, serving as the arrival 
point for a number of submarine cables. The m ost recent of these is DARE1 (Djibouti Africa Regional 
Express 1), which was begun by Djibouti Télécom in 2015 and became operational in June  2020. 
This favourable position has led to the Djiboutian public monopoly, Djibouti Télécom, specializing in 
the B2 B segment, reselling most of its capacity to Ethiopia and focusing on interconnections between 
Africa and the Arabian Peninsula rather than developing its domestic market.7 
4.52.  Within this domestic market, mobile telephone penetration in particular remains lo w (around 
40%) even by regional standards, despite the fact that its spread ought to have been facilitated by 
the concentration of 80% of the population in Djibouti City. This focus on a business and international 
clientele also explains why Djibouti Téléc om has been rolling out an LTE network since June  2018.  
4.53.  Table 4.8 below sets out the key activities undertaken by Djibouti Télécom during the period 
under review.  
 
7 Economic Transformation in Djibouti: Systematic Country Diagnostic , World Bank, 2018  (in Engli sh 
only). Viewed at: https://openknowledge.worldbank.org/handle/10986/31301 . WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  Table 4.8 Mobile telephony, fixed -line telephony, telex and internet, 2016 -20 
 
2016  2017  2018  2019  2020  Variation 
2020/2019  
Fixed -line telephony        
Number of subscribers  24,929  24,069  25,508  25,568  27,341  6.9%  
National traffic (1,000 minutes)  27,935  27,607  31,251  129,573  40,224  .. 
International traffic (1,000 minutes)  .. .. .. .. .. .. 
 Outgoing (1,000 minutes)  10,748  11,398  8,866  8,572  7,558  -12%  
 Incoming (1,000 minutes)  1,873  636 861 851 989 16%  
Mobile telephony        
Number of subscribers  345,246  373,052  395,037  414,809  434,035  4.6%  
National traffic (1,000 minutes)  147,580  167,791  167,791  122,807  206,211  68%  
International traffic (1,000 minutes)  .. .. .. .. .. .. 
 Outgoing (1,000 minutes)  18,195  19,225  12,987  12,794  12,987  1.5%  
 Incoming (1,000 minutes)  25,521  27,404  17,743  17,262  17,743  2.8%  
Internet        
Number of ADSL subscribers  23,180  22,384  23,722  23,778  25,053  5.4%  
Number of 3G subscribers  103,574  186,526  197,519  207,404  217,017  4.6%  
Number of .dj websites hosted  243 275 298 312 308 -1.3%  
Number of hours of connection (1,000 
hours)  39,148  62,590  68,834  75,834  118,021  56%  
Internet bandwidth available to local 
users  6.8 Gbps  7.5 Gbps  8.5 Gbps  9.5 Gbps  9.32 Gbps  -1.9%  
SMS (1,000)  51,672  178,282  177,032  265,723  212,365  -20%  
Other services        
3G dongle  11,177  9,259  9,269  9,281  9,281  0% 
CDMA  14,189  11,312  11,347  11,361  11,347  -0.12%  
Fibre to the home ( FTTH) subscribers  121 328 363 429 314 -27%  
LS internet subscribers  147 140 149 163 215 24%  
.. Not available.  
Source:  Djibouti Télécom.  
4.54.  On 11  July 2021, the Council of Ministers announced its intention to open the capital of 
Djibouti Télécom, the national monopoly, to a private operator.8 During a meeting of the Council of 
Ministers on 9  September  2021, the Government of Djibouti approved a draft law defining the terms 
and conditions for the legal sale of 40% of the stock of the public fixed -line and mobile telephony 
operator, Djibouti Télécom, to a "top -flight strategic par tner". In August  2021, the Government set 
a deadline of six weeks ending on 16  September for bidders to express their interest in purchasing 
this 40% share, whilst making potential candidates aware that it was not opposed to introducing 
competition in the near future.9 
4.55.  A call for expressions of interest was published on 27  July 2021. Three potential buyers 
submitted bids. A ministerial committee (ministers in charge of the budget, finance, postal services 
and telecommunications, and the digital economy) was set up to lead the selection process. The 
discussions currently under way concern, inter alia , a possible redundancy plan and its terms. A 
further discussion point concerns the request by the potential buyers to increase their capital in 
order eventually to gain a majority share.  
4.56.  The Vision Djibouti 2035  long-term strategic development document contains plans for a "new 
information and communication technology (ICT) special zone", financed by submarine cable 
revenue. These cables are op erating well below full capacity, since Djibouti Télécom manages 
numerous submarine cables, reselling cable capacity to other countries, particularly in the 
sub-region. As well as the significant and growing revenue generated for the national operator, thi s 
capacity could be used to provide real impetus for national development and job creation, whilst 
also fostering high -quality telecommunications services that will cement the country's position as a 
regional hub, attracting new foreign investors and spark ing new emerging business sectors. This 
new ICT special zone is to be supported by specific regulations and benefits under a public -private 
partnership (global operators).  
4.57.  With this in mind, the strategy for the sector will be based on two main areas of wo rk. The 
first involves modernizing the telecommunications sector, with market opening to reduce costs and 
 
8 Information viewed at: https://www.agenceecofin.com/telecom/1307 -90069 -Djibouti Telecom -l-un-
des-derniers -monopoles -telecoms -d-afrique -est-sur-le-point-de-disparaitre . 
9 Information viewed at: https://www.telecomreviewafrica.com/index.php/articles/divers/2489 -
nouveauA -projet -de-loi-sur-le-transfert -des-actions -de-Djibouti Telecom . WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  improve service quality. Alongside this opening, Djibouti Télécom will shift focus to its area of 
expertise, with other market segments opened up to p rivate investors.  
4.58.  The second area of work will involve harnessing existing telecommunications infrastructure to 
promote offshoring activities, particularly call centres, offering prospects for young graduates with 
good language skills. Against this backdro p, the Smartafrica firm has outlined plans for a flagship 
data centre project in Djibouti.  
4.59.  In order to realize this ambition, Djibouti intends to prepare and implement a development 
strategy for the telecommunications sector and to establish a new customiz ed regulatory framework. 
In addition, in order to regain competitiveness and attract investors in the offshoring sector, it will 
need to act swiftly through strong incentives. These incentives could initially be financed from a 
portion of submarine cable r evenue.  
4.60.  Internet, fixed and mobile telephony services are the monopoly of Djibouti Télécom. A licence 
has been granted to AfriFiber for the deployment of fibre optics and internet service provision. The 
rates applied by Djibouti are submitted to the Govern ment for approval by the Council of Ministers.  
4.61.  Djibouti does not have a regulatory authority for telecommunications services. Law 
No. 074/AN/20/8ème L provides for the establishment of a multisectoral regulatory authority with 
responsibility for electricit y and telecommunications. However, this body is not yet operational.  
4.4.2   Financial services  
4.4.2.1   Banks  
4.62.  The Djiboutian financial system is dominated by the banking sector (97% of assets) . As at 
the end of December  2021, total banking assets stood at DJF  613.9  billion (USD  3.4 billion), or 99% 
of GDP.  
4.63.  Since Djibouti's last Trade Policy Review, there has been a relative expansion in the country's 
banking system, in particular as a result of the growth in GDP and the dynamism of the services 
sector. This expansion has b een further sustained by the free movement of capital and the absence 
of exchange controls.  
4.64.  Since 2011, Djibouti's banking system has been governed by Banking Law 
No. 119/AN/11/6ème L of 22  January  2011, which fixes the minimum capital requirement for fina ncial 
institutions at DJF  1 billion as well as extending the scope of the law to include financial auxiliaries 
(in particular, remittance offices) and Islamic finance institutions.  
4.65.  The number of commercial banks has increased from two in 2005 to 13 in 2021 . The robust 
competition from newer banks has had a significant impact on the market share of the incumbent 
banks, Banque pour le Commerce et l'Industrie - Mer Rouge (BCIMR) and Bank of Africa - Mer Rouge 
(formerly BIS -CA10), whose market shares in 2021 ha d fallen to 20% and 16% respectively.  
4.66.  The State's participation in banking is limited to share holdings in the BCIMR  and the Silk 
Road International Bank of 33% and 25% respectively. Islamic banks have a significant share of the 
market (22% of total bankin g assets in 2021; 86,913  accounts compared to 86,795 accounts with 
conventional banks). Four new banks were established during the period under review: the 
Commercial Bank of Ethiopia and the Silk Road International Bank in 2016, the Bank of China in 
2019 and the International Business Bank in 2021.  
4.67.  The sector also comprises three Islamic banks, two state -owned specialist financial 
institutions (the Djibouti Economic Development Fund (FDED) and the Djibouti Partial Credit 
Guarantee Fund), three microfinance  cooperatives (the Caisse Populaire d'épargne et de crédit de 
Djibouti, the Caisse Populaire d'épargne et de crédit du Nord and the Caisse Populaire d'épargne et 
de crédit du Sud) and 20 remittance and money exchange offices, six of which were set up durin g 
the period under review.  
 
10 Its largest shareholder is the BMCE group from Morocco.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  4.68.  Short, medium and long -term loans account for 40%, 28% and 32% of total credit 
respectively. The private sector is the principal recipient of this credit (over 52% of loans granted, 
as opposed to 28% for state -owned enterprises a nd 20% for retail customers). Lending and 
borrowing interest rates are freely determined by the commercial banks. Though relatively high, 
they have fallen significantly due to the emergence of new credit institutions. They stand at around 
10% for risk -free loans, 11.5% for overdrafts and 7.5% for real estate loans.  
4.69.  Private sector credit as a share of GDP remains low (18% of GDP in early 2022) owing to a 
shortage of suitable loan instruments for households or SMEs (only 5% of formal enterprises have 
access t o bank financing). Loans are concentrated for the most part in the transport, logistics, public 
works and real estate sectors. The ratio of non -performing loans (NPLs) remains high, at 16.3% as 
at the end of 2019, and 92% of them are with the two largest b anks (BCIMR  and Bank of Africa). A 
plan to tackle NPLs is under way, with a writing -off of doubtful debt of more than five years' standing 
as of 1  January  2021. The BCD hopes that by 2024 the NPL ratio will be reduced to 8%. Between 
the end of 2020 and Mar ch 2022, the NPL ratio fell from 13.8% to 10.8%, evidence of the significant 
efforts that credit institutions have put into cleaning up their credit portfolios.  
4.70.  When it comes to loans granted by the specialist financial institutions, the purpose of the 
Djibouti Economic Development Fund (FDED) is to provide concessional loans to SMEs and small and 
medium -sized industries ( SMIs) that are excluded from bank financing. In addition to financing, the 
FDED is tasked with training project promoters and rolling out  a process to monitor project 
implementation from beginning to end. The Fund has set up a number of credit programmes, 
including for investment loans, loans for new graduates, and women's entrepreneurship, and other 
programmes within priority sectors. The following types of project are eligible for financial backing: 
those proposed by microfinance clients with estimated costs of DJF  2 million to DJF 3 million; those 
proposed by micro -enterprises for DJF  3 million to DJF 10 million; and those proposed by SME s, 
involving loans of DJF  10 million to DJF 30 million. As at the end of 2020, the FDED had granted 
credit worth DJF  5,732  million in total.  
4.71.  With regard to the microcredit sector, the Caisses populaires d'épargne et de crédit (CPEC) in 
Djibouti and the int erior of the country had a total of 43,945 customers in 2020, a 35% increase 
over 2019. Some 73% of these customers are women. There are DJF  300 million of outstanding 
loans.  
4.72.  As to Islamic microfinance, 45 projects received financing totalling DJF 25.59  million in 2019. 
Since the launch of the programme, DJF  229.21  million of financing has been granted for 
693 projects.  
4.73.  A "Microfinance Strategy 2019 -23" has been prepared in order to promote these financial 
products and develop the sector.  
4.74.  Notwit hstanding these microcredit and alternative finance instruments, the banking 
penetration rate remains low at 26% (compared to 49.7% in the rest of sub -Saharan Africa) and 
financial inclusion is still in its infancy. The UNDP and the Djiboutian authorities have prepared a  
"National Strategy for Financial Inclusion 2021 -26" in order to remedy this situation. In this regard, 
a noteworthy commercial initiative is D-Money , set up by Djibouti Télécom in 2020 as a competitor 
to Nomadecom, hitherto the only firm pr esent in the digital banking and mobile money sector.  
4.75.  From a regulatory standpoint, the Central Bank of Djibouti (BCD) is responsible for monitoring 
the operating conditions of credit institutions, overseeing the quality of their financial situation and 
ensuring that the rules of professional ethics are observed. BCD approval is necessary to engage in 
any financial activity in Djibouti. Where commercial banks are concerned, a standby refinancing 
arrangement in foreign currency with a bank of international s tanding is required.  
4.76.  In order to satisfy the approval procedure, credit institutions must be set up in the form of 
either a public limited company or a cooperative society under Djiboutian law. A bank or financial 
institution must be managed by a person wi th resident status, in other words, a natural person 
whose domicile is Djibouti, or a legal person whose place of registration or place of business is in 
Djibouti. There are no specific requirements as to nationality.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  4.77.  BCD approval is required for other ope rations involving substantial changes in the initial 
conditions of approval. These include, inter alia : any change leading to a reduction of the equity or 
capital funding; any significant change in the capital structure; any change in activities likely to lead 
to a change in the category of the financial establishment; and any sale of part of the shares 
amounting to 10% or more.  
4.78.  As part of its ongoing policy of strengthening the regulatory framework for banking and 
financial activities within Djiboutian ter ritory, the BCD has undertaken the following key reforms:  
• changes in the BCD statutes in order to bolster its independence by defining its remit and 
mechanisms for administration and supervision;  
• the banking law (supervisory framework for the banking syste m), enabling new banking 
players to emerge;  
• at law on Islamic financing, covering the specificities of credit institutions whose statutes 
require their operations to be consistent with Islamic law (Sharia), including a prohibition 
on charging or paying int erest.  
• a law on financial cooperatives defining the rules for the establishment, structure, 
operation and supervision of savings and credit cooperatives.  
4.79.  Together with the enactment of these laws, regulatory work has also involved the preparation 
of instructions on the implementation of the banking law. A series of eight instructions has been 
produced, covering, inter alia , internal control, minimum capital , solvency ratio, large exposures, 
capital composition, capital participation, non -performing loans and the approval of the auditors.  
4.80.  Seven other instructions relating to Islamic banking operations, as well as three circulars, 
were adopted in late 2021. Th ey cover, inter alia : 
• procedures and time -frames for periodic reporting;  
• approval application procedures;  
• the annual internal audit report.  
4.81.  Also in the area of regulation, the BCD adopted two new instructions on liquidity and approval 
of credit institution s in 2013, thus completing its set of regulations. Parallel reforms have begun with 
a view to overhauling the earliest instructions, dating from 2011, such that they are in line with 
international standards and address certain risks.  
4.82.  As part of the work to  revise its regulatory texts, the BCD has updated its instructions on 
capital composition and non -performing loans and has prepared three new instructions on corporate 
governance, related parties, and credit, counterparty, merger and foreign exchange risk 
management.  
4.83.  The instruction on capital composition has been revised in order to limit the potential weight 
of supplementary capital in line with the provisions adopted under Basel III. This has given an 
opportunity to revise the elements that qualify as su pplementary capital as well as core capital 
deductions and, in particular, amounts outstanding attributable to related parties.  
4.84.  The instruction on non -performing loans, which entered into force in 2021, was given a radical 
overhaul, particularly in light o f the distortions present in the provisioning rules adopted by the 
banking market as a whole. This instruction is intended to provide a precise definition of related 
parties and to set authorized exposure limits, as well as the conditions for deduction of all or part of 
this exposure from core capital.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  4.85.  Furthermore, in order to improve supervision of Islamic finance, a National Committee of 
Sharia has been set up under the control of the governor of the BCD. This Committee is tasked with 
advising and informi ng the Central Bank as to the conformity of financial products and the operating 
procedures of Islamic financial institutions with Sharia law. It provides its opinions to the BCD on, 
inter alia : 
• validation of the Sharia governance framework for Islamic fin ancial institutions;  
• conformity of Islamic products with Sharia;  
• audit reports of Islamic financial institutions by the National Committee of Sharia.  
4.86.  Lastly, since 2002 and pursuant to Law No. 196/AN/02/4ème L on money laundering, 
confiscation and cooperat ion in relation to the proceeds of crime, credit institutions must install an 
anti-money laundering mechanism comprising:  
• the centralization of information on the identity of customers and suspicious transactions;  
• the appointment of an officer with responsibility for money laundering issues at the 
headquarters and in the branches and agencies of each credit institution;  
• in-service training for employees with responsibility for money laundering issues;  
• a system for internally monitoring the implementa tion and effectiveness of the measures 
adopted under the current law on money laundering;  
• the processing of suspicious operations on the basis of screening lists published by the 
European Union, the United Nations, the United States, and the United Kingdom , together 
with the national list issued by the BCD.  
4.87.  The last available Article IV Consultation report on Djibouti by the IMF11, dating from 2019, 
gives the following assessment of Djibouti's financial sector:  
"Notwithstanding progress in cleaning up banks ' balance sheets, the financial sector 
remains fragile, and financial inclusion is low. The central bank should continue to 
upgrade the banking sector regulatory environment, reinforce risk -based supervision, 
and improve access to finance. Making the AML/C FT [anti -money laundering and 
combating the financing of terrorism] framework more effective is also a key priority to 
preserve correspondent banking relationships."  
4.88.  Since then, the Government of Djibouti has taken steps in this direction and is preparing to 
seek Financial Action Task Force (FATF) validation for the country's regulatory and institutional 
framework (review planned for 2024).  
4.4.2.2   Insurance  
4.89.  There are four insurance companies with a presence in Djibouti, two of which are Islamic. The 
majority share holders are Djiboutian nationals in the private sector and the State does not hold any 
shares. Overall, the insurance market in Djibouti was valued at USD  21.4 million in 2020.  
4.90.  The basic legislation governing the sector (Law No.  40/AN/99/4ème L of 8  June 1999 and 
Law 131/2011 on Islamic finance) predates the period under review.  
 
11 The most recent report dates from February 2022 but the Government of Djibouti requested and was 
granted an additional period of time to examine its conclusions and consider publication.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  4.91.  According to these regulatory texts, insurance is compulsory for motor vehicles and imports. 
Risks incurred in Djibouti may be covered only by Djiboutian insurance companies (travel  insurance, 
COMESA Yellow Card). Dual approval is required in order to offer both life and non -life insurance. 
Regulations for reinsurance services are currently being drawn up.  
4.4.2.3   Securities and commodities trading services  
4.92.  The Vision Djibouti 2035  long-term development strategy document of 2013 stated that in 
order to promote the development of a financial market by 2015, the State should take all necessary 
steps in terms of regulation and financing in order to establish Djibouti as a regional commodities 
and stock exchange, in conjunction with the countries of the sub -region. Work is reportedly under 
way to develop a stimulus and outreach policy aimed at making Djibouti a fully -fledged financial 
centre by 2035.  
4.4.3   Transport services  
4.4.3.1   Port services  
4.93.  Djibouti offer s safe anchorage, strategically located at the gateway to the Red Sea and close 
to major sea routes connecting three continents (Africa, Europe and Asia). Since Eritrea's 
independence, Djibouti has been Ethiopia's preferred outlet to the sea and is now lin ked to that 
country by a modernized railway. For all these reasons, Djibouti's port activities have developed 
considerably since the beginning of the millennium, with a 20 -year concession granted to Dubai Port 
World (DPW) in 2000. Activities developed furt her during the period under review, which saw the 
termination of the DPW concession in 2017 and many port investments being made. These 
investments were largely financed by Chinese enterprises. Table 4.9 below shows the vessel 
movements recorded annually b etween 2017 and 2020 by Djibouti's various terminals and ports.  
Table 4.9 Movements of vessels by port and terminal, 2017 -20 
Port 2017  2018  2019  2020  
Société de Gestion du Terminal à conteneurs 
de Doraleh (SGTD)  600 528 423 422 
Doraleh Multipurpose Port (DMP)  216 255 281 291 
Horizon petroleum terminal  140 96 114 107 
Port de Djibouti Société Anonyme (PDSA)  541 659 741 593 
Tadjourah mineral terminal  0 5 8 18 
Ghoubet (mineral terminal yet to become 
operational)  0 0 0 0 
TOTAL  1,497  1,543  1,567  1,431  
Source:  Port Statistics Department.  
4.94.  As can be seen from this table, the number of vessel movements, which was on an upward 
trend, fell slightly in 2020 with the COVID pandemic.  
4.95.  Table 4.10 below shows the date of entry into operation, specialization, physical 
characteristics, investment costs and shareholders of Djibouti's various ports and terminals.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
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  Table 4.10 Main features of Djibouti's ports and terminals  
Port/  
terminal  Date of 
entry into 
operation  Specialization  Physical 
characteristics  Initial investment cost  Ownership  
Société de 
Gestion du 
Terminal à 
conteneurs de 
Doraleh 
(SGTD)  2009 Containers  Quay length: 1,050 m  
Depth: 18 to 20 m  
Storage capacity: 
40,000 TEU  
Yard space: 285,000 m²  
Terminal handling 
capacity: 1.6  million 
TEU12 .. PSDA Holding S.A 
(67%) and Great Horn 
Investment Holding 
S.A.S (GHIH) (33%)  
Doraleh 
Multipurpose 
Port (DMP)  2017 Containers, 
bulk, break bulk 
cargo and ro -ro 1,200 m of quay line, 
accommodating six 
berths with a depth of 
15.3 m (plans for 4,130 
m of quay line and 17 
berths).  
690 hectares of land for 
industry  
Average performance of 
90 units discharged per 
hour (ro -ro) and 31 
containers  per hour 
(lo-lo) 
Direct connection to the 
Djibouti -Addis Ababa 
railway  USD 590 million  PDSA Holding S.A 
(Government of 
Djibouti 76.5% and 
China Merchants 
Shekou Holdings 
23.5%)  
Horizon 
Terminal  2005 Petroleum 
terminal  - Total storage capacity 
of 371,000 m³  
- Two berths of 30,000 
and 80,000 DWT  
- 12 truck loading bays 
and one LPG bulk truck 
loading bay  
- Pumping capacity of 
2,000 tonnes/hour/line  .. Horizon Terminals Ltd 
(subsidiary of Emirates 
National Oil Company 
of Dub ai) majority 
shareholder, 
Government of Djibouti 
and private investors  
Port de 
Djibouti 
Société 
Anonyme 
(PDSA)  1998 Non-containeriz
ed cargo: bulk, 
break bulk 
cargo and 
heavy cargo 
(bulk carriers 
and ro -ro) 
 
Plans for a 
marina and 
business centre  - Ro-ro quay of 232 m.  
- Bulk carrier quay of 
200 m (up to 50,000 
tonnes)  .. PDSA Holding S.A 
(Government of 
Djibouti 76.5% and 
China Merchants 
Shekou Holdings 
23.5%)  
PDSA Holding S.A is 
also a shareholder in 
various entities such as 
the SGTD (67%), DMP 
(100%) and  Port 
Labour Supplier, a 
company that manages 
handling equipment 
and personnel (100%)  
Tadjourah  2017 Mineral terminal 
(exports of 
Ethiopian 
minerals, 
mainly potash)  -Two berths of 435 m in 
length and 12 m in 
depth  
- An area of 30 
hectares, including a 
state-of-the-art potash 
handling system and a 
190 m ro -ro quay  
- Handles up to 2,000 
tonnes of potash per 
hour and up to 4  million 
tonnes per year  USD 90 million  .. 
Ghoubet  .. Mineral terminal 
under 
construction  .. .. .. 
.. Information not available.  
Source:  Compiled by the Secretariat using information provided by the authorities.  
 
12 Twenty -foot equivalent units (20 ft being the standard container length).  WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 60 - 
 
  4.96.  Table 4.11 below describes the origin and destination of traffic in metric tonnes.  
Table 4.11 Traffic by port in 2021  
(Metric tonnes)  
Status  PDSA  DMP SGTD  HORIZON  TADJOURAH  TOTAL  
Incoming 
traffic  Djiboutian traffic  57 386,130  503,983  384,301  2,974  1,277,444  
Ethiopian traffic  1,176,983  2,844,448  2,081,900  3,689,525  385,490  11,462,428  
Trans -shipment  0 12,642  572,623  99,419  0 901,683  
Total incoming traffic  1,177,010  3,325,334  4,237,045  4,199,671  395,169  14,241,308  
Outgoing 
Traffic  Djiboutian traffic  0 23,934  130,920  0 0 233,127  
Ethiopian traffic  50,622  20,012  589,931  0 0 1,208,915  
Trans -shipment  0 122,142  500,609  0 0 641,134  
Total outgoing traffic  50,622  166,088  1,221,460  0 0 2,083,176  
All traffic  Djiboutian traffic  27 492,178  1,712,812  410,717  9679 2,110,324  
Ethiopian traffic  1,227,606  2,864,460  2,671,831  3,689,525  385,490  12,671,343  
Trans -shipment  0 134,783  572,623  99,419  - 1,542,817  
Overall total  1,227,632  3,491,422  5,458,505  4,199,671  395,169  16,324,484  
Source:  Port Statistics Department.  
4.97.  This table shows that only a very small portion of traffic comes from or is destined for Djibouti. 
The largest share of this (almost 80 %) originates from or is destined for Ethiopia. Trans -shipment 
traffic, characteristic of maritime hubs, is still marginal as it does not even reach the volume of 
traffic destined for Djibouti itself.  
4.98.  Table 4.12 below shows the breakdown of traffic by type of cargo for 2020.  
Table 4.12 Traffic by type and by port, 2018 -20 
(Unit: tonne)   
2018  2019  2020  
PDSA  
Bulk 1,242,192  1,668,696  1,199,084  
Vehicle  2,556  .. .. 
Livestock  43,612  68,265  28,547  
Total 1,288,360  1,736,961  1,227,631  
DMP 
Bulk 3,288,036  3,876,525  3,165,671  
Vehicle  94,663  107,343  135,457  
Total 3,382,699  3,983,868  3,301,128  
HORIZON TERMINAL  
Local 370,693  401,499  410,727  
Ethiopian  3,714,327  3,913,408  3,689,525  
Other  112,738  117,265  99,419  
Total 4,197,758  4,432,172  4,199,671  
SGTD  
Imported containers  317,162  343,482  314,275  
Exported containers  310,541  342,850  324,098  
Trans -shipped containers  178,907  178,053  169,490  
Other   
9,263  4,706  
Total 806,610  873,648  812,569  
.. Not available.  
Source:  Port Statistics Department.  
4.4.3.2   Maritime transport services  
4.99.  Charts 4.1 and 4.2 below, which are based on UNCTAD's liner shipping connectivity index, 
show Djibouti's main maritime partners and their level of connectivity with its ports, as well as the 
evolution of their overall connectivity, which is on an upward trend and does not appear to have 
been adversely affected by the COVID -19 pandemic, at least in 2020.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 61 - 
 
  Chart 4.1 Liner shipping connectivity index, 2006 -22 (Q1)  
(Maximum 2006=100 for China)  
 
Source:  UNCTAD Secretariat, calculated using data provided by MDS Transmodal ( https://www.mdst.co.uk ). 
Chart 4.2 Bilateral connectivity index, top 10 partners in 2020  
 
Source:  UNCTAD Secretariat, calculated using data provided by MDS Transmodal ( https://www.mdst.co.uk ). 
4.100.   In 2020, Djibouti had a national flagged fleet of 18 vessels amounting to a total tonnage of 
8.7 million DWT, consisting of oil tankers, non -containerized general cargo vessels and "other t ypes 
of ships" (this residual category does not include container ships or bulk carriers). Table 4.13 below 
shows changes in the tonnage of the Djiboutian fleet since 2005.  
0510152025303540
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.3010.3020.3060.3090.3130.3210.3380.3380.3400.348
MoroccoFrancePakistanItalyIndiaJordanEgyptSingaporeChinaSaudi ArabiaWT/TPR/S/430 /Rev.1  • Djibouti  
 
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  Table 4.13 Carrying capacity by type of ship  
(Thousands DWT)  
 2005  2010  2015  2020  
Total fleet  5.0 0.7 13.1 8.3 
Oil tankers  .. .. 5.0 0.0 
Bulk carriers  .. .. 0.0 0.0 
General cargo  4.0 .. 0.0 2.5 
Container ships  .. .. 0.0 0.0 
Other types of ships  1.0 .. 8.1 5.8 
.. Not available.  
Source:  UNCTAD Maritime profiles.  
4.101.   There is no nationality requirement for obtaining the Djiboutian flag: the only requirement 
is that ships meet the safety standards approved by the international classification societies that are 
members of the International Association of Classification Societies (IACS). At least 15 % of the crew 
of any vessel flying the Djiboutian flag must be Djiboutian nationals if a local labour force is available. 
National coastal shipping is reserved for Djiboutian flag ves sels. 
4.4.3.3   Road transport services  
4.102.   For both geographical and political reasons, Djibouti is the natural and preferred maritime 
gateway for Ethiopia's imports and exports. Until the re -opening13 of the Djibouti -Addis Ababa 
railway line, this traffic was carried solely by an almost continuous stream of trucks. Since the 
opening and start of operation of the railway line in 2016 -18, road traffic has declined slightly but 
has remained at high levels as reflected in Table 4.14.  
Table 4.14 Road traffic in the Djibouti -Ethiopia international corridor, 2016 -20 
 
Movement of trucks  
2016 438,015  
2017 422,673  
2018 384,463  
2019 397,442  
2020 387,588  
Source:  Directorate of Mines and Road Safety.  
4.103.   However, Table 4.15 below, which describes new registrations of road transport vehicles in 
Djibouti during the period under review, appears to show that Djibouti's truck fleet is small, which 
would indicate that most of the trucks travelling on the Djibouti -Addis Ababa route are Ethiopian.  
Table 4.15 Registered road transport vehicles, 2016 -20 
Type of vehicle  2016  2017  2018  2019  2020  
Bus/Minibus  176 202 252 77 0 
Truck  587 328 317 181 176 
Van 44 23 41 0 0 
Total .. .. .. .. .. 
.. Not available.  
Source:  Directorate of Mines and Road Safety.  
4.4.3.4   Rail transport services  
4.104.   During the period under review, a new railway line between Djibouti and Addis Ababa was 
built with financial and technical assistance from China. The project was 70 % financed by a 
USD 3.4 billion loan from China EXIM Bank, of which USD  491.8  million was assumed by Djibouti. 
China Civil Engineering Construction Corporation was responsible for the works as project manager.  
 
13 A single -track metre -gauge line had been constr ucted between 1897 and 1917, but fell out of use in 
the early 2000s.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 63 - 
 
  4.105.   Work on the new line started in 2013 and lasted  for four years. It included the construction 
of an electrified double -track standard -gauge line of 756 km in length, serving around 20 stations; 
670.7 km of the line are in Ethiopia, whilst 82 km are in the Republic of Djibouti. Djibouti's section 
was com pleted in August  2015. The line was opened in October  2016, but did not come into service 
until 1  January  2018. It is operated by two different state -owned companies, Ethiopian Railways 
Corporation for the Ethiopian part, and the Société Djiboutienne de Ch emin de Fer for the Djiboutian 
part, through a Djibouti -Ethiopia joint venture called Ethio -Djibouti Railways. In practice, Ethiopia is 
responsible for most of the traffic. This company is responsible for managing and regulating traffic.  
4.4.3.5   Air transport serv ices 
4.106.   Djibouti has two airlines: Air Djibouti, also known as Red Sea Airlines, and Daallo Aviation.  
4.107.   Air Djibouti, founded in 1963, went bankrupt in 2002. The state -owned company was 
relaunched in 2015. Between 2015 and 2017 it was managed by the British com pany Cardiff 
Aviation, but since 2017 has been under the direct management of the State. It currently has only 
one aircraft, a Fokker F27 -500-F, with which it operates cargo and passenger flights to countries in 
the region such as Yemen, South Sudan, Ethio pia, Egypt, Kenya, Somalia and the United Arab 
Emirates.  
4.108.   The second company, Daallo Airlines, is a Somali and Djiboutian private airline, based in the 
city of Djibouti. Since 2007, Daallo Airlines has been controlled by the Dubai World Company 
Istithmar Wo rld Aviation (IWA) holding company. It has about ten aircraft that also serve regional 
destinations. Law No. 125/AN/8ème L of 2 March  2021 requires a 51 % majority of Djiboutian capital 
for Djiboutian airlines.  
4.109.   Djibouti Ambouli Airport is the country's only  international airport. It is used for military 
activities related to various foreign military naval bases established in Djibouti, as well as for civilian 
activities. It is managed by the state -owned company, Aéroport de Djibouti. Ground handling 
services  are provided by Air Djibouti (boarding/disembarking passengers, cargo services and VIPs) 
and by Rubis and Enoc (refuelling).  
4.110.   The Vision Djibouti 2035  long-term development strategy document  envisages the 
construction of a second international airport (the  future Bi cidley airport), for which a construction 
study was launched in 2020.  
4.111.   Passenger and cargo traffic during the period under review is shown in Table 4.16  
Table 4.16 Passenger and cargo air traffic, 201 6-20 (Units: passengers, number; cargo)  
(Tonnes)  
 2016  2017  2018  2019  2020  
Passengers disembarked  126,791  132,573  140,826  172,719  74,894  
Passengers boarded  143,756  137,862  143,762  167,474  74,544  
Passengers in transit  46,271  44,357  17,011  86,661  493 
Cargo imported  8,167  5,057  4,605  6,886  4,481  
Cargo exported  1,817  1,295  2,819  1,530  741 
Source:  Statistical Yearbook 2021 , National Institute of Statistics of Djibouti (INSTAD).  
4.112.   This table shows that the COVID -19 pandemic reduced air traffic by two thirds in 2020, 
which, although significant, is relatively little compared to international standards for the same year. 
The fact that a fraction of air traffic was maintained is most likely due to the activities of foreign 
military naval bases. Djibouti i s a member of the pan -African Yamoussoukro Decision on air 
transport, which liberalizes intra -African air traffic.  
4.113.   Charts 4.3 and 4.4 below show the distribution of passenger and cargo traffic between the 
various airlines serving Djibouti airport, in 2017 and 2020.  WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 64 - 
 
  Chart 4.3 Passenger traffic by airline, 2017 and 2020  
 
COTAM:  French Military Air Transport Command.  
Source:  WTO Secretariat calculations based on air transport data, Statistical Yearbook 2021, INSTAD.  
Chart 4.4 Cargo traffic (excluding post) by airline, 2017 and 2020  
 
Source:  WTO Secretariat calculations based on a ir transport data, Statistical Yearbook 2021, INSTAD.  
4.5  Tourism services  
4.114.   In 2021, Djibouti's hotels offered around 2,185 beds, almost exclusively in the city of 
Djibouti. During the review period, hotel accommodation increased by about 30 % and was 
modernized, particularly at the high end of the market. The hotel occupancy rate remains relatively 
low overall: 57.8 % in 2019 (the best year recorded) and 37 % in 2017 (the worst year of the 
non-COVID period). Table 4.17 below provides an overview  of changes in the number of beds and 
nights and occupancy rates during the period under review.  
2017
Total: 314,792 passengersOther
3.4%
Air France
5.6%Kenya 
Airways
8.9%COTAM
1.1%
Qatar 
Airways
9.9%Fly Dubai
8.2%
Turkish Airlines
15.9%Ethiopian 
Airlines
36.5%
Air Djibouti
7.3%Other (NGOs, 
UN, etc.)
3%Felix 
Airways
0.1%
Ethiopian 
Airlines
29.6%
Air Djibouti
19.6%Turkish Airlines
13%Qatar 
Airways
8.8%Air France
7.5%Fly Dubai
7.2%Other (NGOs, 
UN, etc.)
5.4%COTAM
4.8%Felix 
Airways
2.7%Kenya 
Airways
1.4%2020
Total: 149,931 passengers
2017
Total: 6,351 tonnesOther
8.3%
Air France
13.3%DHL
7.3%
Qatar 
Airways
9.9%
Antonov 
Airlines
18.7%
Emirate Cargo
34%Ethiopian 
Airlines
1.4%Air Djibouti 
Cargo
6.3%Etihad Cargo
7%
Ethiopian Airlines
2.7%Emirate Cargo
2.4%
Qatar Airways
17.6%Air France
12.2%DHL
48.2%Other
10.6%2020
Total: 5,222 tonnesWT/TPR/S/430 /Rev.1  • Djibouti  
 
- 65 - 
 
  Table 4.17 Hotel visits, 2016 -20 
 
2016  2017  2018  2019  2020  2021  
Number of rooms  1,199  1,226  1,232  1,385  1,348  1,382  
Number of beds  1,853  1,929  1,943  2,198  2,108  2,185  
Number of nights available for beds  4370635  447,490  449,680  505,525  492,020  504,430  
Number of nights sold  178,747  166,065  160,152  179,671  182,555  182,509  
Occupancy rate of beds  40.84%  37.11%  35.61%  35.54%  37.10%  36.18%  
Number of hotel guests  126,179  132,829  141,941  167,474  74,894  114,102  
Source:  Djibouti National Tourist Board (ONDT).  
4.115.   Table 4.18 describes the types of hotel accommodation available and shows capacity and 
occupancy rates by hotel category.  
Table 4.18 Size and performance of hotel accommodation, 2021  
 Number of 
hotels  Number of beds  Capacity  Nights sold  Occupancy rate  
5 stars  1 440 116,800  85,403  73.12%  
4 stars 2 393 93,075  37,433  40.22%  
3 stars  9 595 135,050  30,994  22.95%  
2 stars  4 180 32,850  6,801  20.70%  
1 star  17 568 123,370  20,962  16.99%  
Unclassified  1 9 3,285  916 27.88%  
Source:  Djibouti National Tourist Board.  
4.116.   These tables show that high -end hotels were less affected by the COVID -19 crisis than other 
hotels. The COVID -19 pandemic caused hotel occupancy, mainly by foreigners, to fall by only 60 %, 
which is relatively little by international standards and consistent with the continuation of a cer tain 
amount of international air traffic. This proves that hotel occupancy is linked more to the business 
activities of the Djibouti logistics hub and the activity of foreign military bases. Indeed, the 
development of tourism activities per se  remains larg ely embryonic.  
4.117.   Nevertheless, the country has real potential in this area, particularly thanks to its beautiful 
marine wildlife (the rise in diving tourism outside the Red Sea, and especially in areas other than 
Sharm El Sheikh and Hurghada, indicates stron g demand from tourists), globally unique geological 
landscapes and rich cultural and archaeological heritage.  
4.118.   The Vision Djibouti 2035 long -term development strategy of 2013 aims to make Djibouti a 
leading regional tourist destination revolving around thre e hubs: a capital hub (business and leisure 
tourism), a seaside hub (seaside and diving complexes located on priority development sites) and 
an eco -friendly hub (discovery tourism with a focus on archaeological and prehistoric sites).  
4.119.   In 2019, Djibouti ado pted a strategic framework law for the development and promotion of 
tourism in Djibouti and a tourism master plan. This policy makes it possible to define priority actions 
for a cultural and environmental tourism model, as well as measures and instruments to ensure the 
implementation of these actions. In this context, steps have been taken to increase air connectivity. 
This had actually improved during the review period despite the COVID pandemic. To date, 
seven  international airlines serve Djibouti: Air Dj ibouti, Air France, Turkish Airlines, 
Ethiopian  Airlines, Qatar Airways, Flydubai, and Kenya Airways. In addition, in January  2018, 
Djibouti introduced the e -visa system and thus reduced visa costs from USD  80 to USD  10, 
i.e. a decrease of 87.5 %. 
4.120.   The targe t is to reach a figure of 500,000 tourists a year by 2030. Geographically, this 
approach focuses on three tourist areas with specific regulations: Tadjourah, Day and Assal for 
thalasso therapy  tourism; Dikhil and Lake Abbe for eco -tourism; and Obock as a re ception point for 
cruise lines. There are already cruise ships calling at Djibouti and a marina is in the pipeline.  
4.121.   Djibouti offers a stable and fully open legal framework for foreign investment in tourism 
activities, having bound the total absence of rest rictions for the first three modes of supply 
(cross -border, consumption abroad and commercial presence) for hotels, restaurants, recreational 
and cultural services, and sporting services in its GATS commitments.  
 WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 66 - 
 
  5  APPENDIX TABLES  
Table A1. 1 Imports by HS section and main products, 2016 -20 
(USD million and %)   
2016  2017  2018  2019  2020  
Total imports (millions USD)  798 867 981 822 750  
(% of imports)  
1. Live animals; animal products  3.5 3.6 3.0 3.6 3.8 
2. Vegetable products  11.8 11.8 12.3 14.0 16.3 
 1211. Plants and parts of plants (including seeds and 
fruits), of a kind used primarily in perfumery, in 
pharmacy or for insecticidal, fungicidal or similar 
purposes, fresh, chilled, frozen or dried, whether or not 
cut, crushed or powdered  5.7 5.1 5.4 6.3 7.6 
 0708. Leguminous vegetables, shelled or unshelled, 
fresh or chilled  3.5 3.5 3.5 3.9 4.2 
 1101. Wheat or meslin flour  1.6 1.4 1.8 1.7 2.4 
 1006. Rice  0.5 1.2 1.1 1.5 1.3 
3. Animal or vegetable fats and oils  1.0 1.7 1.0 1.4 1.2 
4. Prepared foodstuffs; beverages, spirits; tobacco  6.5 8.4 7.2 9.1 10.0 
17. Sugars and sugar confectionery  1.0 1.7 1.4 1.7 2.1 
 1902. Pasta, whether or not cooked or stuffed (with 
meat or other substances) or otherwise prepared  1.1 1.3 1.2 1.4 0.8 
 22. Beverages, spirits and vinegar  0.4 0.7 0.6 1.0 0.8 
 24. Tobacco and manufactured tobacco substitutes  0.0 0.3 0.3 0.6 0.5 
5. Mineral products  14.7 13.1 14.9 16.5 13.8 
 2710. Petroleum oils and oils obtained from bituminous 
minerals, other than crude  7.2 7.7 9.2 10.6 7.8 
 Gas oils  4.7 5.1 .. .. .. 
 Fuel oils  0.5 0.3 .. .. .. 
 Kerosene  0.8 0.9 .. .. .. 
 Aviation spirit  0.0 0.5 .. .. .. 
 Lubricating oils  0.3 0.3 .. .. .. 
 2523. Portland cement, aluminous cement, slag cement, 
super  sulphate cement and similar hydraulic cements, 
whether or not coloured or in the form of clinkers  2.4 0.8 0.6 1.2 0.9 
6. Products of the chemical or allied industries  4.3 4.9 5.0 7.0 11.3 
 30. Pharmaceutical products  1.7 2.3 2.4 2.3 5.5 
 3208 - 3210. Paints  0.3 0.3 0.3 0.4 0.3 
 3401 - 3402. Soap; washing preparations and cleaning 
preparations  0.6 0.7 0.5 1.7 0.7 
7. Plastics and rubber  6.7 4.6 4.8 5.7 5.3 
 4011 - 4012. Tyres  2.9 1.7 1.3 2.5 1.7 
8. Raw hides and skins,  leather , furskins ; travel goods, 
handbags  0.2 0.2 0.1 0.1 0.1 
9. Wood and articles of wood  1.0 1.0 1.0 1.1 0.9 
10. Pulp of wood or of other fibrous cellulosic material; 
paper or paperboard  1.1 1.0 1.1 1.0 1.2 
11. Textiles and textile articles  4.1 3.0 3.0 3.2 3.4 
12. Footwear, umbrellas; artificial flowers  0.7 0.6 0.7 0.7 0.7 
13. Articles of stone, plaster, cement; ceramic products; 
glass and glassware  0.9 0.9 1.1 1.2 1.0 
14. Natural or cultured pearls, precious or semi -precious 
stones , precious metals  0.0 0.1 0.0 0.0 0.0 
15. Base metals and articles of base metal  8.2 7.3 12.1 7.1 4.2 
16. Machinery and mechanical appliances; electrical 
equipment; image and sound recorders  19.3 22.2 16.5 15.2 13.5 
 8415. Air conditioning machines, comprising a motor -
driven fan and elements for changing the temperature 
and humidity, including those machines in which the 
humidity cannot be separately regulated  1.0 0.5 0.8 0.5 0.7 
 8418. Refrigerators, freezers and other refrigerating or 
freezing equipment  0.4 0.5 0.8 0.4 0.5 
 8502. Electric g enerating sets  0.5 0.5 1.0 0.4 0.5 
 8471. Automatic data processing machines and units 
thereof  0.7 0.6 0.4 0.7 0.4 
 8528. Monitors and projectors; reception apparatus  for 
television  0.1 0.4 0.2 0.3 0.2 
17. Vehicles, aircraft, vessels and associated transport 
equipment  11.7 13.0 11.2 8.2 9.6 
 8703. Motor cars principally designed for the transport 
of persons  5.1 4.8 4.9 3.0 4.2 
 8704. Motor vehicles for the transport of goods  3.0 4.9 2.5 2.4 3.0 WT/TPR/S/430 /Rev.1  • Djibouti  
 
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2016  2017  2018  2019  2020  
 8706 - 8708. Parts of m otor vehicle  1.4 1.1 1.0 1.0 1.0 
 8702. Motor vehicles for the transport of ten or more 
persons, including the driver  1.4 1.3 1.8 0.9 0.4 
 8716. Trailers and semi -trailers  0.6 0.2 0.1 0.2 0.3 
 8705. Special purpose motor vehicles  0.2 0.4 0.1 0.5 0.1 
 8711. Motorcycles  0.1 0.1 0.1 0.1 0.1 
18. Optical, photographic, precision, medical instruments; 
clocks and watches; musical instruments  1.7 0.8 1.3 1.9 1.6 
19. Arms and ammunition  0.2 0.0 0.1 0.1 0.0 
20. Miscellaneous manufactured articles  2.2 1.9 3.4 2.4 1.9 
21. Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.4 0.0 
Other  0.1 0.1 0.0 0.1 0.1 
.. Not available.  
Source:  WTO Secretariat calculations based on The Foreign Trade Yearbook, various issues (INSTAD), and 
data provided by the authorities.  
  WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 68 - 
 
  Table A1. 2 Imports by trading partner, 2016 -20 
 
2016  2017  2018  2019  2020  
World (USD million)  798 867 981 822 750  
(% of imports)  
America  1.3 1.6 1.4 3.0 1.8 
 United States  0.7 0.4 0.5 2.7 1.6 
 Other America  0.6 1.2 0.9 0.3 0.3 
 Brazil  0.4 1.0 0.9 0.1 0.1 
 Panama  0.0 0.0 0.0 0.0 0.1 
Europe  18.3 20.8 15.6 14.9 13.9 
 EU (27)  13.6 15.5 10.2 10.6 8.1 
 France  7.4 7.1 5.2 5.1 3.1 
 Netherlands  0.9 3.3 0.8 0.8 1.3 
 Italy 1.9 1.0 1.0 1.4 1.3 
 Belgium  1.3 1.8 1.3 1.0 0.8 
 Spain  0.5 0.3 0.3 0.6 0.7 
 Germany  0.7 0.4 0.4 0.9 0.4 
 EFTA 0.2 0.0 0.0 0.1 0.0 
 Other Europe  4.5 5.3 5.4 4.2 5.9 
 Türkiye  4.2 3.3 5.1 3.9 5.6 
 United Kingdom  0.2 1.8 0.2 0.2 0.2 
Commonwealth of Independent States 
(CIS)a 0.0 0.1 0.1 0.1 0.0 
Africa  13.5 14.2 14.2 13.8 18.3 
 Ethiopia  11.2 11.7 11.4 11.7 14.7 
 Egypt  1.4 1.4 1.4 1.4 1.5 
 Morocco  0.0 0.1 0.1 0.0 0.7 
 Kenya  0.2 0.2 0.3 0.2 0.7 
 South Africa  0.4 0.4 0.4 0.1 0.5 
Middle East  27.4 22.2 21.4 22.3 16.3 
 United Arab Emirates  17.0 12.2 11.3 13.7 10.5 
 Saudi Arabia, Kingdom of  8.9 9.1 9.0 7.6 4.6 
 Oman  0.3 0.2 0.2 0.5 0.7 
 Qatar  0.3 0.3 0.1 0.2 0.3 
 Yemen  0.5 0.2 0.1 0.1 0.1 
Asia 27.2 27.3 25.4 18.7 13.7 
 China  21.7 20.4 19.6 13.8 9.2 
 Japan  0.2 1.5 0.5 0.5 0.5 
 Other Asia  5.3 5.4 5.2 4.5 4.0 
 India 2.5 3.1 3.1 2.9 2.5 
 Singapore  0.5 0.4 0.3 0.4 0.3 
 Korea, Republic of  0.2 0.3 0.2 0.2 0.2 
 Chinese Taipei  0.0 0.1 0.0 0.0 0.2 
 Indonesia  0.2 0.2 0.2 0.0 0.2 
 Malaysia  0.8 0.6 0.4 0.2 0.2 
 Pakistan  0.5 0.3 0.4 0.2 0.1 
Other  0.0 14.1 21.8 27.2 35.8 
Memorandum       
EU (28)  13.8 17.3 10.4 10.7 8.2 
a Commonwealth of Independent States, including certain member states and former member states.  
Source:  WTO Secretariat calculations based on The Foreign Trade Yearbook, various issues (INSTAD), and 
data provided by the authorities.  
  WT/TPR/S/430 /Rev.1  • Djibouti  
 
- 69 - 
 
  Table A2. 1 Criteria and benefi ts under the Investment Code, 2021  
Regime  Activities  Benefits  
A (i) exploitation, preparation or processing of 
products of plant or animal origin, irrespective of 
their source;  
(ii) offshore fishing, and the pre pparation, freezing, 
processing or storage of fish products;  
(iii) Mining, treatment or processing of mining or  
metal products, irrespective of whether they are 
mined in Djibouti or not;  
(iv) prospection, exploitation, storage of any source 
of energy, and refining of hydrocarbons;  
(v) creation, operation of establishments 
responsible for developing tourism and handicrafts;  
(vi) creation, exploitation of electricity, electronics, 
chemicals and ship industries;  
(vii) land, maritime or air transport;  
(viii) port and airport activities;  
(ix) building, repair and maintenance of maritime 
transport or fisheries vessels;  
(x) manufacture, packaging on the spot of 
consumer products or goods;  
(xi) banking or loan activities likely to promote new 
investment, as well as warrantage activities (credit , 
warehousing);  
(xii) advisory services, engineering, data processing, 
database retrieval.  Exemption from the business licence contribution during 
the year in which the facilities start up or the activity is 
launched and for the following five years, but p ayment 
of the business licence fee, except on imports required 
for the investment that are exempt.  
 
Exemption from the internal consumption tax (ICT) and 
import taxes and surcharges on materials and 
equipment needed to carry out investment programmes 
and appearing on the quantitative and qualitative list 
attached to the approval request decree filed with  the 
ANPI, with the exception of petroleum products, spare 
parts and motor  cars. 
 
Materials and equipment exempted may not be 
transferred, sold, loaned or utilized for purposes other 
than those covered by the approval decree for a period 
of 10 years.  
B (i) construction of buildings exclusively for 
industrial, commercial or tourism use;  
(ii) construction of social housing;  
(iii) construction, creation and operation of teaching 
and training facilities.  Exemption from the internal consumption tax (ICT) and 
import taxes and surcharges on materials and 
equipment needed to carry out the investment 
programme and appearing on the quantitative and 
qualitative list attached to the approval decree, with the 
exception of petroleum products, spare parts and motor 
cars. Raw materials, with the exception of petroleum 
products, imported and actually used during the first 
10 years of manufacturing, are exempt from the ICT.  
 
Exemption from land tax on buildings (for building 
construction) for a period of 10 years as of the ye ar 
following the completion of the work.  
 
Exemption from industrial and commercial profits and 
tax on the profits of legal persons within the limit of a 
maximum of 10 years as of the start -up date.  
 
Exemption from the graduated duty on registration of 
acts attesting to the establishment of companies with 
capital investment of DJF 30 million or more. The same 
exemption may apply to capital increases of 
DJF 10 million or more within at least five years after 
approval or after a previous in crease exempted for the 
same reason. Possibility of partial exemption from 
duties on taking out or terminating mortgages.  
 
Registration and land registry duties may be halved 
when they apply to the purchase of green -field sites or 
land with buildings inte nded for demolition within a 
period of three months in order to carry out the 
investment approved.  
 
Authorization for temporary occupation and provisional 
concessions in the private domain related to the 
investment may be given at reduced cost.  
Possibility  of exemption from the building permit tax.  
 
Materials and equipment exempted may not be 
transferred, sold, loaned or utilized for purposes other 
than those covered by the approval decree for a period 
of 10 years.  
Source:  Law No.  58/AN/94/3ème L of 18 Oct ober 1994 issuing the Investment Code and Article  28.15.31 of 
Law No.  108/AN/00/4ème L of 29 October 2000 amending the General Tax Code.  
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