RESTRICTED  
  
WT/TPR/G/305  
17 September 2014  
(14-5194)  Page: 1/13  
Trade Policy Review Body  Original: French  
 
  TRADE POLICY REVIEW  
REPORT BY 
DJIBOUTI  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Djibouti 
is attached. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Tr ade Policy Review Body on Djibouti. WT/TPR/G/305 • Djibouti 
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  CONTENTS 
LIST OF AC RONYMS ......................................................................................................... 3  
1  INTRODUC TION ........................................................................................................... 4  
2  ECONOMIC AND INSTITUT IONAL DEVELO PMENTS ....................................................... 4  
2.1  Institutional developments ........................................................................................... 4  
2.1.1  Commercial Code ..................................................................................................... 5  
2.1.2  Industrial and co mmercial property ............................................................................ 5  
2.1.3  Public-priva te partne rship ......................................................................................... 5  
2.1.4  Single Window ........................................................................................................ 5  
2.2  Macroeconomic outc omes and outlook ........................................................................... 5  
2.3  Foreig n trade ............................................................................................................ . 6 
2.4  The vision for ec onomic deve lopment ............................................................................ 6  
3  INVESTMENT REGIME  AND DEVELOPMENTS ................................................................. 7  
3.1  Investment policy ....................................................................................................... 7  
3.2  Free zones ................................................................................................................. 8  
4  TRADE POLICY AND OUTLOOK ..................................................................................... 8  
4.1  The multilateral  trading system .................................................................................... 8  
4.2  Regional integration and regional trade agreements ........................................................ 8  
4.2.1  Continental integration ............................................................................................. 9  
4.2.2  COMESA ................................................................................................................. 9  
4.2.3  Intergovernmental Author ity on Developm ent (IGA D) ................................................... 9  
4.2.4  Partnership agreements with the Europe an Union ......................................................... 9  
4.2.5  African Growth and Econom ic Opportunity Act (AGO A) .................................................. 9  
4.3  Bilatera l framework ................................................................................................... 10 
5  SECTORAL DEVELOPM ENT STRATEGIES ..................................................................... 10  
5.1  Transport and logistics ............................................................................................... 10 
5.2  Tourism .................................................................................................................. . 10 
5.3  Energy ..................................................................................................................... 11 
5.4  Telecommunications .................................................................................................. 11 
5.5  Industry ................................................................................................................... 11 
5.6  Agriculture, fi shing and li vestock ................................................................................. 12 
5.6.1  Fishing ................................................................................................................ .. 12 
5.6.2  Li vestoc k .............................................................................................................. . 12 
6  CONCLUSIONS AND OUTLOOK .................................................................................... 12  
 
 WT/TPR/G/305 • Djibouti 
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LIST OF ACRONYMS  ACP   African, Caribbean and Pacific Group of States 
AGOA  African Growth and Opportunity Act 
ANPI   National Agency for Investment Promotion AU   African Union 
COMESA Common Market for Eastern and Southern Africa 
EbA   "Everything but Arms" initiative EPA   Economic Partnership Agreement ESA   Eastern and Southern Africa 
EU   European Union 
FDI   Foreign Direct Investment FTZ  Free-trade zone 
GATT   General Agreement on Tariffs and Trade 
GDP   Gross Domestic Product HCNDPP  High Council for Public-Private Dialogue 
IGAD   Intergovernmental Authority on Development 
IMF   International Monetary Fund INDS   National Initiative for Social Development LDC   Least Developed Country 
ODPIC  Djibouti Office of In dustrial Property and Commerce
 
PAID  Djibouti International Autonomous Port 
PMIR  Regional Integration Implementation Programme 
SADC  Southern African Development Community 
SCAPE  Strategy for Accelerated Growth and Employment Creation SME   Small and Medium-Sized Enterprise 
SMI   Small and Medium-Sized Industry 
SNDC  National Trade Development Strategy SW   Single Window
 
USD   United States Dollars 
WTO  World Trade Organization WT/TPR/G/305 • Djibouti 
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1  INTRODUCTION 
1.1.  The Republic of Djibouti is located in the Horn of Africa. It is bordered in the north, west and 
south by Ethiopia (450km border), in the south-east by Somalia (65 km) and in the east by the 
Indian Ocean where it has a maritime shoreline 370 km long. 
1.2.  Djibouti has been a Member of the WTO since 31 May 1995. On 16 December 1994, 
it became a Contracting Party to the GATT, which it had applied de facto since 18 November 1960. 
The Government of Djibouti recognizes the pivotal role played by the WTO in managing and 
safeguarding an open, rules-based multilateral trad ing system designed to promote global growth 
and development. The monitoring of national trade policies through the Trade Policy Review Mechanism is an important feature of the WT O's work, and transparency is a fundamental 
component of the efficiency of the multilateral trading system. 
1.3.  The first review of the country's trade policy t ook place in 2006. This is therefore Djibouti's 
second trade policy review. The intervening period has seen a number of important developments, 
which continue to have implications for trade and trade-related policies. 
1.4.  One of the main changes in Djibouti's trade policy is the adoption of a National Trade 
Development Strategy (SNDC)
1 in 2010 and a Commercial Code in 2011. 
1.5.  Djibouti's new trade policy, as envisaged by th e Government for the coming years, is set out 
in several framework documents, including "Djibouti Vision 2035"2 and the "Strategy for 
Accelerated Growth and Employment Creation (SCAPE)"3 – the implementation strategy that the 
Government is formulating to replace the National Initiative for Social Development (2008-2012).4 
1.6.  The new National Trade Development Strategy (SNDC 2) under preparation is part of that 
process and should include components on regional integration, market regulation, trade facilitation, private-sector development and tourism that will enhance the framework for 
future action that Djibouti may take in the area of trade policy. 
1.7.  The country has continued to contribute to the work of the COMESA Secretariat, particularly 
in relation to preparations for the establishment of the customs union and the common market, 
negotiations concerning the Economic Partnership Agreement (EPA) with the European Union (EU), 
and the Tripartite Agreement between COMESA,  the SADC and the EAC. In addition to 
participating in the various WTO Agreements, Djibouti is pursuing its trade liberalization programme on a bilateral and regional basis wi th a view to promoting trade and investment. 
1.8.  Djibouti aims to achieve all its trade policy goals while enhancing social inclusion and 
promoting economic growth and sustainable developm ent. The purpose of this report is to provide 
a broad overview of the way in which Djibouti's trade policy is formulated and to highlight the 
country's current and future trade policy priorities. 
2  ECONOMIC AND INSTITUT IONAL DEVELOPMENTS 
2.1  Institutional developments 
2.1.  The Constitution of the Republic of Djibouti
5 was revised in April 2010, in other words since 
the previous trade policy review, instituting a multiparty system, specifying a presidential term of office, consolidating the rule of law, laying down provisions on holding multiple office, abolishing the death penalty and establishing a Senate. 
                                               
1 Republic of Djibouti, Ministry of Trade and Industry, National Trad e Development Strategy 
(2010-2015), Djibouti. 
2 Republic of Djibouti, Ministry of the Economy an d Finance, with responsibility for Industry (2013), 
"Djibouti Vision 2035", Djibouti. 
3 Republic of Djibouti, "Strategy for Accelerated Growth and Employment Creation, 2013",  Djibouti. 
4 National Initiative for Social Development, second-generation PRSP. 
5 Law No. 92/AN/10/6ème L of 21 April 2010. WT/TPR/G/305 • Djibouti 
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  2.2.  Djibouti's basic law contains provisions relating to the country's trade policy, particularly as 
regards questions of external control, ratification  of international agreements, and the adoption of 
the State budget. 
2.1.1  Commercial Code 
2.3.  The Republic of Djibouti has introduced a new Commercial Code that entered into force in 
August 2012.6 This new body of law was adopted to provide better regulation of commercial 
activity and represents a major contribution to improving the country's business climate. 
2.1.2  Industrial and commercial property 
2.4.  The Djibouti Office of Industrial Property and Commerce7, established in 2009, plays an 
important role in facilitating the creation and re gistration of businesses. Its purpose is to keep 
national industrial property registers, to record all instruments affecting the ownership of titles to 
industrial and commercial property, to keep the central trade register and the alphabetical file of 
natural or legal persons, and to hold copies of the instruments relating to the trade register from local registers. 
2.5.  Djibouti will continue the process of accession to WIPO-administered treaties. These include 
the Patent Cooperation Treaty (PCT) and the Hague Agreement Concerning the International 
Registration of Industrial Designs. 
2.1.3  Public-private partnership 
2.6.  The Republic of Djibouti has had a High Council for Public-Private Dialogue since 
30 August 2012.
8 Its task is to foster a business environment in which the private sector can thrive 
and contribute to economic growth and job creation. 
2.7.  The High Council comprises the following three bodies: a strategic committee, a technical 
committee and a permanent secretariat. The method laid down for the Council's operation is in line with regional good practice. 
2.1.4  Single Window 
2.8.  The aim of the Single Window
9, established in 2013 at the National Agency for Investment 
Promotion, is to facilitate the process of business formalization and creation and to provide support 
for investors. 
2.9.  The main objective of the Single Window is to introduce paperless procedures, 
thereby cutting costs and reducing processing times to a maximum of 72 hours. 
2.10.  These reforms have helped bring about a significant improvement in Djibouti's ranking in 
the various international indexes. Djibouti was ranked 160th out of 189 countries in the 
World Bank's Doing Business 2014 report, compared to 2013, when it was ranked 171st out 
of 185 countries. 
2.2  Macroeconomic outcomes and outlook 
2.11.  The acceleration in Djibouti's economic growth that began in 2012 (4.5%) continued, 
reaching 5% in 2013. Growth is led by foreign direct investment (FDI) and port activities, which 
are the two traditional drivers of the country's economy. 
2.12.  The attractiveness of the Republic of Djibouti to international investment is illustrated by the 
change in the investment rate: there has been a significant rise in FDI inflows since the last trade policy review in 2006. FDI as a percentage of GD P, which amounted to only 13% in the years 
                                               
6 Law No. 134/AN/11/6ème L of 1 August 2012. 
7 Law No. 49/AN/08/6ème L of 19 April 2009. 
8 Decree No. 2012-0188/PR/MEFIP. 
9 Decree No. 2013-114/PR/MDCC. WT/TPR/G/305 • Djibouti 
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  2000-2005, rose to 31% during 2005-2010, a rate that far exceeded Ethiopia's and Kenya's, which 
was around 20%. 
2.13.  In 2013 FDI flows reached a record US$277 million, or 18.6% of GDP. The growth 
momentum is expected to continue over the coming  years, bolstered by further implementation of 
an extensive programme of investment, especially in infrastructure. The programme is a major 
turning point for the Republic of Djibouti. It is based on the authorities' ambition to make the country a regional hub for commercial, logistics and financial services. 
2.14.  Inflation was brought down to 3.7% in 2012, and to 2.7% in 2013 thanks to stabilization of 
international food prices and a reduction in electricity rates for low-consumption households.
10 
2.15.  As a result of the Government's prudent public spending policy and improved revenue 
collection, the budget deficit fell to 2.7% of GDP in 2012, and to 1.9% of GDP in 2013. These key 
achievements are enabling Djibouti to focus on its main objective to become a regional hub in the 
logistics, telecommunications and financial sectors. 
2.16.  In 2014, growth will continue to be sustained by port activity, thanks to the dynamism of 
the economies of landlocked neighbouring countries, in particular Ethiopia and South Sudan, most 
of whose trade transits through Djibouti. It will al so be boosted by significant investment flows. 
2.17.  The medium-term macroeconomic outlook is favourable. Projections for 2013-2016 are 
based on real GDP growth of around 6%, inflation of 2.5% and a current deficit of 13.5% of GDP. 
2.18.  The Government intends to pursue its efforts to consolidate its macroeconomic framework. 
The three main thrusts of prospective reforms in budget forecasting are as follows: (i) to develop budget forecasting tools; (ii) to improve and modernize revenue monitoring; and (iii) to organize a 
data generation system. 
2.3  Foreign trade 
2.19.  Foreign trade activities remain focused on the services sector and the transit of Ethiopian 
imports and exports. 
2.20.  Djibouti's exports are still limited and consist principally in exports of cattle from Somalia 
and Ethiopia to countries of the Arabian Peninsula (United Arab Emirates, Saudi Arabia and 
Yemen). Good prospects for livestock trade have  prompted the Government to establish a new 
livestock port to give a further boost to exports. 
2.21.  The Government is seeking to redress Djibouti's negative trade balance by establishing 
infrastructure to promote trade and encourage SMEs that contribute to the creation of value chains 
in certain growth sectors such as fisheries, livestock farming and tourism. The economic 
diversification target set out in Vision 2035 embo dies the Government's policy for reducing the 
country's trade deficit over time. 
2.4  The vision for economic development 
2.22.  In August 2014 the Government launched "Vision Djibouti 2035", a new model for economic 
development. It is based on five main pillars, namely: (i) national peace and unity; (ii) good 
governance; (iii) a diversified economy; (iv) the consolidation of human capital; and (v) regional 
integration. 
                                               
10 Ministry of the Economy and Finance. WT/TPR/G/305 • Djibouti 
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2.23.  The five pillars of national change aim to make the Republic of Djibouti an emerging 
middle-income country by 2035. 
2.24.  This is an extensive and ambitious programme  for change that aims to fundamentally 
transform the country with efficient institutions to serve the public. The Economic Transformation 
Programme is based on an approach that focuses on the key areas of the economy and strategic initiatives for reform. 
2.25.  The five-year operational plan for Vision 2035 is  part of the Strategy for Accelerated Growth 
and Employment Creation (SCAPE), which will be finalized during the second half of 2014 at the 
latest. It provides for the establishment of an effective mechanism to monitor and evaluate the 
five-year development strategy and relevant programmes. 
3  INVESTMENT REGIME AND DEVELOPMENTS 
3.1  Investment policy 
3.1.  The Republic of Djibouti has a liberal economy that authorizes both Djiboutian and foreign 
investors to invest in all sectors. The National Agency for Investment Promotion (ANPI), 
established in 2001, grants the benefits set out in the Investment Code. 
3.2.  The Republic of Djibouti reviewed its investment policy in 2013. The policy contains the main 
thrusts of a strategy to attract FDI, based on th e authorities' determination to develop the private 
sector in the highly competitive global environment in which countries seek to attract FDI. The principles of the strategy include consistency in reforms, clear definition of investors' rights and 
obligations, the need to improve the Djiboutian Government's negotiating strengths with investors 
and the development of the private sector, a key fact or in attracting FDI. A new investment code is 
under preparation. 
3.3.  The priority programmes for investment are in tourism, road and railway infrastructure, 
energy and capital-intensive sectors such as the extractive industries and mineral exploration. 
Beacon for the Red Sea  
Pillar I: National peace  and 
unity Pillar II: Good governance  Pillar III: Diversified 
economy  Pillar IV: Consolidation  of 
human capital   
Pillar V: Regional  integration  WT/TPR/G/305 • Djibouti 
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  3.2  Free zones 
3.4.  The Djibouti free zone has one major asset – modern port infrastructure that the country 
intends to use to greater advantage in a drive to counterbalance the high level of activity involving goods in transit, and thereby maximize the potential of its port infrastructure and free zone as a 
means of attracting foreign investors and promotin g re-exports. The aim is to develop free zones 
providing value added import-export activities, services or logistics operations at a multi-modal logistics hub from which to penetrate regional and African markets. 
3.5.  Since the DFZ was established in 2004, it has made a significant contribution to integrating 
the country into the international economy. Thanks to its geostrategic position, the Republic of Djibouti intends to boost the potential for the region's investment flows by increasing confidence among businesses and multinational firms. Djibouti is continuing with its strategy to 
modernize the legal framework for business in the light of its specific requirements in terms of 
procedures and the handling of trade disputes. 
3.6.  The Government of Djibouti intends to establish an international commercial court in the free 
zone to encourage trade. This extraterritorial co urt will implement international standards and best 
practice. It will apply the common law legal system and be independent of the ordinary national courts, which will continue to apply civil law. 
3.7.  The court will provide instant access to an independent, efficient and predictable judicial 
system. The rulings delivered will provide certainty to trading parties in the settlement of all trade 
disputes, even for the most complex cases. Parties bound by commercial contracts will have the option to refer a matter to the jurisdiction of the International Commercial Court of Djibouti, which 
will act as an independent international centre unaffiliated to any State. Its standing role will be to 
encourage greater judicial cooperation while seeking to remove obstacles in the business environment that hamper investment and business growth. 
4  TRADE POLICY AND OUTLOOK 
4.1.  Djibouti's trade policy remains strongly focused on regional and multilateral trade. 
Its objective, set out in Vision 2035, is to contribute to economic and social development, 
the reduction of poverty and unemployment, the establishment of a hub for regional trade, and the 
integration of the country's economy into regional economic organizations and the multilateral trading system. 
4.1  The multilateral trading system 
4.2.  The Republic of Djibouti has been an original member of the WTO since 31 May 1995. On 
16 December 1994, it became a Contracting Party to the GATT, which it had applied de facto since 18 November 1960. 
4.3.  Djibouti firmly believes that a rules-based multilateral trading system under the WTO is 
necessary to safeguard the interests of developing countries and to ensure that world trade is conducted in an orderly manner. The Government will continue to push for the early conclusion of 
the Doha Round of negotiations, as this would offer vast benefits not only to the global trading 
community at large, but also in enhancing trade among developing countries. 
4.4.  Djibouti participated in the Ninth WTO Minister ial Conference and supported the Bali Package, 
in particular the proposal for a Trade Facilitation Agreement. 
4.2  Regional integration and re gional trade agreements 
4.5.  The Republic of Djibouti intends to pursue its efforts to further open the country and 
implement an active partnership to form regional economic blocs that can compete in world trade. 
To enhance its geographical position, Djibouti belongs to two of COMESA's regional blocs, 
the continental free-trade area and IGAD. The aim of its regional integration policy is to diversify production and increase the pace of economic growth. WT/TPR/G/305 • Djibouti 
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  4.2.1  Continental integration 
4.6.  In 2012, the Assembly of Heads of State and Government of the member countries of the 
African Union adopted an action plan to boost intra-African trade and establish a continental free-trade area by 2017. Pursuant to this decision, Djibouti set up a coordination and monitoring 
mechanism comprising representatives from the public and private sectors. A national action plan 
is being drafted to expand regional and African trad e that will help to shape the other processes in 
which the country is involved (free trade area, CO MESA, Tripartite Agreement) to ensure coherent 
integration that is in step with the development objectives laid down in Vision 2035. 
4.2.2  COMESA 
4.7.  Djibouti is a member of the Common Market for Eastern and Southern Africa (COMESA), 
which is made up of 19 member States.
11 The COMESA Treaty envisages the progressive 
integration of these countries within the customs area. Once the customs union has been fully 
implemented, COMESA will form a major market of 19 member States with a population of about 500 million. 
4.8.  To prepare the country for the common market, the Government drew up a Regional 
Integration Implementation Programme (PMIR) in 2013. The PMIR sets the country's medium-term regional integration objectives (2014-2016); lists the challenges that stand in the way of 
integration, with a view to overcoming them ov er time; evaluates progress made in respect of 
sectoral commitments; and increases stakeholder involvement in programme delivery through monitoring and evaluation. 
4.2.3  Intergovernmental Authorit y on Development (IGAD) 
4.9.  The Republic of Djibouti hosts the seat of the organization and has a strong regional 
partnership with its near neighbours to deliver on  regional development objectives that focus on 
promoting peace (combating terrorism and piracy), economic integration, and combating food 
insecurity. In 2009 the IGAD Heads of State launched a Minimum Integration Programme for the 
IGAD region. 
4.10.  Djibouti is committed to closer economic ties and envisages an inclusive process of 
economic integration that will enhance the compet itiveness of the (IGAD) sub-region. The country 
is putting significant infrastructure in place (ports, airport, railways and a new corridor) that will make a decisive contribution to greater integration with the IGAD countries. 
4.2.4  Partnership agreements with the European Union 
4.11.  The European Union (EU) is one of the Republic of Djibouti's leading trading partners, 
behind Asia and the Arabian Peninsula. Djibouti's LDC status means that the country can continue to enjoy the preferences granted by the EU und er the "Everything but Arms" initiative, which 
allows duty-free market access. The Government properly informed the EU and the ACP countries 
of its decision not to sign an economic partne rship agreement (EPA) with the EU. Nonetheless, 
within the regional context, the Republic of Djibouti is currently negotiating an EPA with the EU as 
part of the Eastern and Southern Africa (ESA) negotiating bloc, in which the negotiating modalities 
focus on support for regional development. 
4.2.5  African Growth and Economic  Opportunity Act (AGOA) 
4.12.  The Republic of Djibouti became eligible for the general benefits under the AGOA on 
2 October 2000, but not yet for the specific benefits for textiles and clothing. 
4.13.  At the most recent United States-Africa summit held in Washington on 6 and 7 August 2014, 
Djibouti supported the African proposal to  extend the AGOA for 15 further years. 
                                               
11 Burundi, Comoros, Democratic Republic of the Congo,  Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, 
Madagascar, Malawi, Mauritius, Rwanda, Seychelles, So uth Sudan, Swaziland, Uganda, Zambia and Zimbabwe. WT/TPR/G/305 • Djibouti 
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  4.3  Bilateral framework 
4.14.  Bilateral trade agreements are regarded as a means of achieving a high degree of 
liberalization more rapidly, which should allow effective access to trading partners' markets. Djibouti's trade policy facilitates regional trade through the conclusion of trade agreements not 
only with countries in the sub-region (Ethiopia, Kenya, South Sudan) but also with those of the 
Arabian Peninsula (Emirates, Yemen, Kuwait). 
5  SECTORAL DEVELOPMENT STRATEGIES 
5.1  Transport and logistics 
5.1.  The transport sector is the backbone of the Dj iboutian economy. The transport chain is the 
mainstay of the country's economic activity an d accounts for the performance of the services 
sector. Transport and logistics contribute around 28%  to the sector's GDP. Djibouti is one of the 
leaders in the port activities segment in the northern region of COMESA. 
5.2.  The overall objectives of development strategy in  the transport sector are to reduce transport 
constraints and in so doing facilitate sustained economic growth in Djibouti and contribute to 
poverty reduction. In order to promote trade and the country's competitiveness, government 
action seeks to foster the development of an effi cient, multimodal transport system, to cooperate 
with regional partners to improve connectivity in the transport chain at regional level, and to 
encourage SME involvement in transport activities. 
5.3.  To that end, an unprecedented effort to modernize transport infrastructure is under way. The 
number of ports has been increased to respond effectively to rising traffic, especially with Ethiopia, and a large number of landlocked countries, the bulk of whose international trade transits through 
Djibouti. Moreover, Djibouti's ports have modern equipment and highly qualified staff, making 
productivity vastly superior to that of other regional ports in East Africa. The Djibouti Container Terminal (DCT) is among the best of its kind in the world. 
5.4.  Two new projects will shortly be launched in this sector, namely Doraleh Multipurpose Port 
and Damerjog Livestock Port. 
5.5.  As part of plans to integrate transport, th e Government has launched programmes to build 
railway lines and road corridors. Two railway lines are planned. The first is under construction and 
will link Djibouti City and its ports to Addis Ababa. The second line will link the new port 
of Tadjourah in the north of Djibouti to the city of Mekele in northern Ethiopia. 
5.6.  As regards road transport, the new Tadjourah-Balho corridor is under construction in the 
northern part of the country. The existing corri dor that runs between Djibouti City and Galafi 
requires full renovation and expansion. 
5.7.  In terms of air transport, a new international airport is planned near Djibouti City. It will 
comply with the international standards for civil aviation. Alongside these major transport 
infrastructure projects, large free zones will be developed to attract businesses and encourage job creation. 
5.2  Tourism 
5.8.  Tourism is one of the most important sectors for the country's economic development, 
because Djibouti has a natural and cultural heritage that can be exploited on account of its very favourable geographical location and its vast potential for job creation in the short and medium 
term. "Vision 2035" puts tourism at the heart of development in Djibouti. 
5.9.  The expansion of tourism in Djibouti will follow a development model in which tourism will be 
a major strand of overall economic developmen t policies. The aim of the National Tourism 
Development Strategy currently being drafted is to establish a tourism industry that will be one of 
the drivers of structural change in the national economy. WT/TPR/G/305 • Djibouti 
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  5.10.  The strategic target is to take a major "quantitative and qualitative" leap forward to make 
tourism one of the pillars of economic growth and employment in Djibouti. For that purpose, 
special economic areas for tourism will be constructed all along the coast. Synergy with Ethiopia's tourism development strategies will give the sector a regional dimension that will boost and 
channel the region's strong potential for tourism. 
5.3  Energy 
5.11.  The energy sector plays a critical role in the socio-economic development of the 
Republic of Djibouti. Medium and long-term en ergy prospects are favourable thanks to the 
country's geothermal, solar and wind power potential and to the interconnection with Ethiopia, which also has vast hydroelectric capacity. 
5.12.  Energy policy will focus on production and consumption in order to help attain growth 
objectives. The supply of enough energy to expand  economic activity and diversify the economy is 
a major challenge for the country, as is connecting as much of the population as possible to the electricity supply in order to improve living conditions and modernize rural areas. 
5.13.  The private sector is currently involved in vari ous economic activities in the energy sector 
such as storage and distribution of petroleum. The Government will continue to encourage investment in the energy sector and involvement by the private sector. 
5.4  Telecommunications 
5.14.  Telecommunications are crucial to growth, ec onomic development and poverty reduction. 
The sector contributes up to 7% of Djiboutian GDP. 
5.15.  Djibouti has a significant submarine cable infrastructure. Djibouti Télécom manages several 
submarine cables and resells capacity to foreign coun tries, particularly in the subregion. The vision 
for this sector is to modernize it so as to bring about cost reductions and improvements to quality of service. In tandem with this strategy, Djibouti  Télécom will reposition its area of expertise and 
gradually open other market segments (value added services) to private investors. 
5.16.  At institutional level, a national ICT and telecommunications development strategy is being 
drawn up. As part of this strategy, the Governme nt plans to set up a regulatory authority for 
telecommunications that will establish an appropri ate legal framework. A sectoral policy document 
will support the strategy. 
5.17.  In the coming decade, Djibouti will take its place at the heart of an information society as a 
result of a strategic, institutional and economic framework to develop ICT, a modern and 
accessible national information and communication networks infrastructure, and significant human 
capacity and national expertise. 
5.18.  ICT development will also help to increase output in economic activities in all sectors, 
thereby improving competitiveness and people's well-being. 
5.5  Industry 
5.19.  In terms of industrial development, the Government's chief objective is structural 
transformation of the national economy based on the expansion of light industry and exploitation 
of natural resources. It will accordingly encourage the establishment of product processing units. 
5.20.  The policy will certainly include a strategy that seeks to boost competitiveness and make the 
sector a genuine platform and incubator for SMEs and SMIs, while establishing an appropriate 
institutional, legal and regulatory framework. 
5.21.  The country's richness in mineral resources will enable it to develop the industrial sector and 
create revenue and jobs. The Government will ta ke rapid steps to implement provisions on the 
exploitation of minerals that have already been located, and prospecting activities for underground 
resources will be conducted on sites where showings have been identified. WT/TPR/G/305 • Djibouti 
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  5.22.  The handicraft sector will undergo accelerated development with the implementation of a 
proactive policy for tourism, helping to ramp up growth and develop exports. 
5.6  Agriculture, fishing and livestock 
5.23.  Djibouti has significant agricultural, fishing and livestock resources although it continually 
faces the challenges of a harsh climate, drought and food insecurity. The development strategy for 
the primary sector seeks to create conditions for sustainable food security and to contribute to poverty reduction, economic development and the country's regional integration. The main 
objectives of development in the primary sector target the following priorities: 
 improved access to water; 
 increased agricultural output and productivity  to improve food security and increase the 
revenue of operators in the primary sector; 
 increased productivity of the national herd through the adoption of an appropriate 
breeding and husbandry system; 
 promotion of the rational exploitation of fishery resources; and 
 enhanced capacity of producer organizations and institutional structures. 
5.6.1  Fishing 
5.24.  Djibouti has a coastline of 372 km and claims an Exclusive Economic Zone (EEZ) measuring 
7,459 km
2. Under the Poverty Reduction Strategy Paper (PRSP), the Government of Djibouti has 
set specific objectives for fisheries in terms of poverty reduction, improved food security and a 
greater contribution to the national economy. The role of government in creating employment and 
reducing social vulnerability is reflected in the Fisheries Master Plan as part of an approach that 
develops existing potential and reduces food dependency through: 
 proposals for new methods of fisheries management; 
 new approaches for the local market; 
 more active methods of social organization, while consolidating the progress made so 
far; and 
 protection of an environment that is still fragile. 
5.6.2  Livestock 
5.25.  Development of the livestock subsector will he lp improve Djibouti's supply-side capacity. 
The Government accordingly plans a substantial increase in livestock production through the adoption of animal husbandry and breeding systems and the construction of appropriate 
infrastructure such as the livestock port and quarantine centres to enhance capacity for veterinary 
controls and develop the subsector. 
5.26.  The strategies adopted will increase production in the subsector's various segments, 
increasing their contribution to the country's socio-economic development. 
6  CONCLUSIONS AND OUTLOOK 
6.1.  The Republic of Djibouti is firmly committed and attaches special importance to the conduct 
of exercises of this kind, which relate to the formulation and implementation of Members' trade 
policies and promote transparency. It is therefore pleased to have carried out this second review 
of its trade policy together with the WTO Secretariat. WT/TPR/G/305 • Djibouti 
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  6.2.  This second review has made it possible to emphasize that Djibouti currently has a robust, 
dynamic and growing economy, which has raised the population's level of well-being, driven by the performance of key sectors linked mainly to international trade and boosted by sound economic and social reforms. This performance will doubtl ess grow stronger in the years ahead, to the 
benefit of the country itself, its trading partners, as well as trade in the region. 
6.3.  The Republic of Djibouti will maintain an open  trade regime conducive to economic activity. 
It will continue to implement policies that promote the regional and international integration of 
its economy. 
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