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Country Highlights

Djibouti: The Logistics Industry

Strategic Growth and Development In 2023, The Djibouti logistics industry witnessed significant growth, driven by its strategic geographical positioning as a central hub in the global logistics chain. This growth is evidenced by the substantial increase in the volume of trade passing through the Port of Djibouti, a key gateway for East Africa, particularly for Ethiopia’s imports and exports. The development of transportation infrastructure, notably the Djibouti-Addis Ababa railway, further cements Djibouti’s role in regional and global trade.

Economic Impact and RFC’s Involvement The logistics sector’s expansion has markedly contributed to Djibouti’s GDP, with estimates suggesting a growth rate of approximately 15% in 2023. This sector has also been a significant source of employment, with thousands of jobs created directly and indirectly. RFC’s consultancy services have been pivotal in this expansion, offering strategic insights into supply chain management and operational efficiencies, thus playing a crucial role in the sector’s growth and development.

Key Highlights

  1. Strategic Growth and Investment The Djibouti logistics sector has seen significant growth, largely due to its strategic location. The Djibouti International Free Trade Zone, a $3.5 billion project, is a testament to this growth. Foreign investment, particularly from China, has been substantial, with the Doraleh Container Terminal being a notable example, representing a significant portion of Djibouti’s GDP.
  2. Economic Impact The logistics sector contributes significantly to Djibouti’s economy. It accounts for over 20% of the country’s GDP, with the port handling more than 70% of Ethiopia’s imports. The sector’s growth rate has been consistent, averaging around 7% annually, bolstered by infrastructure investments exceeding $14 billion over the past decade.
  3. Capacity and Development Djibouti’s ports have increased their capacity remarkably, handling upwards of 1.5 million TEU (twenty-foot equivalent units) annually. The Addis Ababa-Djibouti Railway, a $4 billion project, has enhanced cargo movement, reducing transit times from Djibouti to Ethiopia from two days to just 12 hours.

Future Perspectives As Djibouti continues to invest in port and logistics infrastructure, its role in global trade is set to strengthen further. With RFC’s ongoing consultancy and expertise, Djibouti is well-positioned to face the challenges of sustainable growth, ensuring the logistics sector continues to thrive and adapt in a rapidly changing global economic landscape.

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Featured Reports

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