It has borders with Eritrea in the north, Ethiopia in the west and south and Somalia in the south-east. The mountains in the central region separate the coastal plains and the plateau. Due to its peculiar geographical location between the Ethiopian and Yemeni escarpments, the country gets little precipitation. Although it rains occasionally on the hills, some years see no rainfall at all. Due to limited rainfall the vegetation is minimal.
Humidity is high throughout the year.
The economy of Djibouti is based on service activities due to the country s strategic location and status as a free trade zone in Africa. There is limited cultivated land, and the agricultural activities can be listed as plantations of coffee, raising fruits, vegetables and husbandry. The fishing industry is still in the early stages of development. Industrial activity includes mineral water bottling and dairy products. The new discoveries of gas reserves are expected to make the country self-sufficient in gas and provide a surplus for export.