Djibouti Business

By | March 3, 2021

According to commit4fitness, Djibouti is a small country located in the Horn of Africa. It has an open and liberal economy with a focus on services, industry and tourism. The services sector includes banking and finance, telecommunications, transport and logistics as well as retail. The industrial sector produces a range of products including cement, chemicals and food products which are used both locally and exported. In addition, the tourism sector is also well developed with visitors from all around the world coming to experience its stunning landscapes and rich culture. Furthermore, there are several international companies operating in Djibouti such as Total S.A., Daallo Airlines or Coca-Cola who have taken advantage of the country’s strategic location.

According to abbreviationfinder, DJ is the 2 letter abbreviation for the country of Djibouti.


According to countryaah, the economy is mainly based on the transit trade at the international port of the capital and on the service sector associated with it. For example, most of Ethiopia’s exports go via Djibouti. In addition, there is also significant income from French and US military bases.

From the beginning of the 1980s and some way into the 00s, the country’s economic growth did not keep pace with its population growth, which resulted in GDP per capita falling and that dependence on foreign aid, earlier mainly from France but later also from, for example. Kuwait, the US and Saudi Arabia, became more and more evident. In the latter half of the 1990s, annual growth figures averaged up to 5 percent, but dependence on foreign aid remained.

Very little of the land area (about 1 percent) can be cultivated. Primarily, vegetables and dates are produced, and agriculture is able to produce only 3 percent of the food needs. The agricultural sector employs about 75 percent of the workforce. Attempts are made to conduct irrigation using underground sources. More than half of the rural population feed on nomadic livestock management (goats, sheep, camels). Djibouti suffers from periodic drought, and in 1984 the country was hit by severe drought with famine as a result. In 1987, on the contrary, a flood occurred, which destroyed parts of the capital Djibouti and made 150,000 people homeless. Even since the beginning of the 1990s, the country has been hit by drought repeatedly.

The industry (mining, manufacturing and construction industry) is limited to a few small-scale groups, and almost all consumer goods must be imported.

Djibouti has a large trade deficit. Exports mainly consist of livestock, hides, skins and coffee and other products that are re-exported, while imports consist of consumer goods, food and beverages (eg bottled water), oil and machinery. The majority of exports go to Somalia, while the main importing countries are China, Saudi Arabia and India.


Located in the Horn of Africa, at the southern entrance to the Red Sea, the Republic of Djibouti borders Eritrea to the north, Ethiopia to the north, west and south and Somalia to the south-east. It consists of a desert territory of volcanic origin, and the climate is dry and warm (average annual amount of precipitation: 97 mm; average annual temperature: 29, 4 ° C). The population (623. 000 residents In 1998) is composed of two ethnic groups: the Issa Somali source (50 %), and the Afar, the Ethiopian origin (40 %), both Muslims and speakers of languages cuscitici.

During the first half of the nineties the GDP, according to an estimate by the International Monetary Fund, marked a decline of 2, 3 % in 1993 and 4, 5 % in 1994, compared with an average annual increase of the population that The World Bank has calculated the order of 30 ‰ in the period 1990-97, due in part to the influx of refugees from neighboring countries, Ethiopia and Somalia. More than half of the population is made up of nomadic farmers and, due to the scarcity of arable land, the country manages to produce just 3% of its food requirement. Industrial activities are also limited to a few small businesses, and nearly all consumer goods have to be imported.

Dependence on foreign countries is very high (90 %) also as regards energy consumption; Attempts are underway to exploit the significant geothermal potential, financed by the World Bank and supported by international cooperation. The country’s revenues essentially consist of the proceeds from trade through the international port of Djibouti, and from the development of the service sector related to this activity, which provide GDP with a contribution of more than 70 %. Therefore the port of Djibouti and the Djibouti-Addìs Abebà railway (subject to frequent interruptions, the last of which was due to a disastrous flood, in November 1994) are subject to substantial investments and modernization works, with the aim of making Djibouti a cornerstone of trade between East Africa and the Arab countries.