With a modern port at the crossroads of international trade routes, Djibouti has established itself as a substantial transshipment centre. The government is now seeking to build on this advantage by diversifying the economy, upgrading its infrastructure and attracting private sector investment in new sectors. With the African Continental Free Trade Agreement (AfCFTA) now in place, there is no better time to build an African trading hub.
Djibouti’s strategy has drawn comparisons with Singapore and Dubai, both of which have demonstrated that starting with a small population and territory need not be a serious impediment to becoming a major trade centre.
The parallel with Singapore is particularly interesting, given the strategic geographical location of both countries. In Djibouti’s case, its location on the approaches to the Red Sea means that it lies at the nexus of shipping…
