Djibouti Economy and Business
The geographical positioning of Djibouti is a major indicator of the nation’s economy. Its strategic location connecting the Red Sea and the Gulf of Aden helps in trade and commerce along the borders.
The Port of Djibouti is important for sea transportation companies for fuel bunkering and refuelling. Its transport facilities are used by several landlocked African countries for the re-export of their goods. Tax is levied on the nations that use the port for trade and commerce. These transit taxes and harbor fees form a major part of the government revenue.
The port of Djibouti functions as a small French naval facility.
As Djibouti is mostly barren, agricultural activities are less intense. The harsh climate, largely unskilled labor force, and a limited number of natural resources further aggravate the agriculture sector. The major part of the Djiboutian economy is dominated by the services sector, providing services as both a transit port for the region and as an international refuelling centre.
In northeast Africa, Djibouti has been announced as a free trade zone.
The Government of Djibouti has no restriction in the import of any foreign goods except firearms. Terrorism is strongly fought against by the Government of Djibouti. This anti-terrorism stance provides a congenial atmosphere for the industries to grow in Djibouti. There has been an extensive growth of industries in Djibouti since the late twentieth century. The private companies from Europe and USA have invested more than 200 million dollars in Djibouti since that period. The natural resources that have contributed extensively in drawing the private sectors to invest in Djibouti include energy resources like solar and geothermal energy.
The industries of Djibouti export their items mostly to the countries like France, China, India, Ethiopia, Saudi Arabia, Somalia, and peninsular countries of Arabia. Mining also adds to the economy. The major minerals include perlite, salt, limestone, gypsum,granite, marble, sand and gravel. The mining industries of Djibouti mostly concentrated on the mining of gold.
Franc denoted by the ISO 4217 currency code DJF is the official currency of Djibouti. The National Bank has subdivided 1 franc into 100 centimes. The National Bank has issued no limitations on the export of the currency of Djibouti. Anyone interested in numismatics can even buy the banknotes of Djibouti by placing online orders with quite a number of online agencies like ‘World Paper Money’.
The growth of industries in Djibouti has helped to find employment for people in Djibouti.
Vocational education is provided at various levels in the educational institutions in Djibouti. This helps in creating job opportunities in the country. The students who pass out of the University of Djibouti get employed in their related area of specialization very soon.
Various types of jobs from almost all spheres are available in the country of Djibouti including accounting, auditing, business consultancy, advertising, and biology. The growth of restaurants employs a number of people who work as the waiters, bartenders, and delivery boys. The handicrafts industry is one of the important jobs creating sector in the country. Several people are engaged in the making of various handicrafts of Djibouti which have created a deep impact on the various travelers and tourists frequenting the country of Djibouti.