Djibouti

Population

Population Projections (millions) 

Population Residing in Urban Areas (%)

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Expenditure on Education (2010, %)

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)

Source: World Bank, World Development Indicators 2019.

Economy Overview

GDP

Trade Profile

Import Partners (Imported Value, thousands, USD)

Investment Profile

FDI Inflows (millions of USD)

FDI Inward Stock (millions of USD)

FDI Inflows Main Source Countries (in terms of number of projects)

UAE, United States, China, France, South Africa, Tanzania, Bahrain, Canada, Denmark, and Germany.

Source: Financial Times, fDi Markets, 2018.

FDI Inflows Main Sectors (in terms of number of projects)

Business Services, Transportation, Financial Services, Warehousing & Storage, Renewable energy, Communications, Real Estate, Coal, Oil and Natural Gas, Hotels & Tourism, and Chemicals.

Source: Financial Times, fDi Markets, 2018.

FDI Inflows Main Companies (in terms of number of projects)

Exim Bank (Tanzania), Black Rhino, AAE-1 Consortium, Ayla Hotels and Resorts, United Trademark and Patent Services, Silk Road International Bank (SIB), Fotowatio Renewable Ventures (FRV), China Merchants Group, Stereau, and Industrial Maintenance International.

Source: Financial Times, fDi Markets, 2018.

Doing Business

Overall Doing Business Ranking

Source: World Bank, Doing Business, 2020

Starting a Business

Source: World Bank, Doing Business, 2020

Paying Taxes

Paying Taxes

Source: World Bank, Doing Business, 2020

Trading Across Borders

Assumptions

• It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
• It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
• A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
• Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
• If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
• The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
• Time is measured in hours, and 1 day is 24 hours.
• Costs do not include tariffs.

Source: World Bank, Doing Business, 2020

Investment Regime

Legal Framework

Investment Code – LAW N°58/AN/94/3-rd.
Key guarantees in terms of investment protection include:

• Protection against expropriation without fair compensation for damages;
• No restriction on benefits repatriation;
• 100 % repatriation of capital and profits.

Source: COMESA Regional Investment Agency, Investors Guide to Doing Business in Djibouti, NIPA.

Investment Incentives

• Minimum investment required:

• • Minimum investment amount : 5.000.000 DJFj (~ 28 000 US$) to benefit from the regim A.
  • Minimum investment amount : 50.000.000 DJFj ( ~ 281 000 US$) to benefit from the regim B.
• REGIM A:

• • Exemption from domestic consumption tax (TIC) on the materials and equipment necessary for the realization of the investment program as well as imported raw materials and those used effectively during the first three years by the approved company
• REGIM B:

• • Exemption from land tax for construction of buildings for a period of 7 years;
  • Exemption from tax on business profits resulting from the approved activities, subject to a maximum of seven years;
  • Exemption from domestic consumption tax for raw materials imported and used in the first years;
  • Authorized investments pursuant to provisions of Plan B may be exempt from the tax on building permits
• Free Zone:
  
  • Although the term Free Zone only applied to the port, Djibouti now levies customs duties on most commodities. The 42-acre Djibouti Free Zone has been operational since 2004 and can house up to 100 companies. In July 2012, the government approved a new 57 hectares free zone (Jabanaas Free Zone) just outside of the capital.
  • Conditions: the company has to export at least 80% of its production. The benefits of this regime remain valid for a period of 25 years and can be renewed
• Type of benefits:

• • Exemption from taxes, including income tax: The companies and operators individual operating in free zones are not subject to any direct or indirect tax or taxation including income tax, except in respect of VAT. For VAT purpose the entities of the free zone are subject to the provisions of the General Code taxes.
  • Goods imported or manufactured in the free zone are exempt from all customs and tax liability, unless they are imported into the customs territory of the Republic of Djibouti. Thus, the flow in the local market of goods from the free zone is subject to the payment of duties and taxes due on importation.
  • This tax exemption is granted for a period of up to fifty years, which run from the date of issuance of the free zone license.