UK-DjiboutiTrade & Investment Forum

London, May 8th 2013

CHAMBER OF COMMERCE OF DJIBOUTI

CHAMBER OF COMMERCE OF DJIBOUTI

Mr Said Omar MoussaPRESIDENT CHAMBER OF COMMERCE OF DJIBOUTI

HONORARY CHAIRMAN OF COMESA BUSINESS COUNCIL

VICE PRESIDENT OF IGAD BUSINESS FORUM

Brief introduction on the Republic of Djibouti

A DRIVING FORCE BEHIND THE DEVELOPMENT AND THE PROMOTION OF PRIVATE SECTOR

Since1907

CHAMBER OF COMMERCE OF DJIBOUTI

A priviledged position in the international exchanges : Situated on the 2nd sea route in the world

sea route in the

world

Population 818.159 inhabitants

Languages : French, Arab, (officials) Somali, Afar (nationals)

English is increasingly used, due to the development of trade relations with the countries of the region and the installation of a U.S. military base (since 2003).

The economic context

Djibouti has opted for a liberal economyas of 1949, by abolishing any control on the exchange and by using the Djibouti Franc linked to the dollar as local currency.

1 $ US = 177.7 Franc DJ

Based on service activities connected with the country's strategic location and status as a free trade zone

in East Africa.

Economy

Positive growth trend since 2004

GDP (Growth Domestic Product) : 5.1 % in 2012

GDP composition by sector : Services : 81% | Industry : 16% | Agriculture : 3%

Imports in value : (USD Billion 2012) : 126 539

Imported Products : Food and Beverage, Hydrocarbons, Chemical products, Plastics, Rubber and Articles, Machineries and Equipments, Electrical Materials, Vehicules and transport equipments, Textiles

Exports in value (USD Billion 2012) : 22 999

Exported products : Livestock, Leather and Skin, Salt, Fish

External Trade

Investment

Salient features of the Investment Code

- Foreigners and nationals benefit the same advantages

- Freedom of investors to manage business and to repatriate profits

- Tax incentives and specific tax exemptions (home consumer tax, income tax, property tax, registration duties, …)

- Guaranties of rights and freedoms.

Foreign Direct Invesment (% of GDP 2012): 21%

Local Private Sector

Major tertiary activities

Transport and Logistics

Banking and Insurance

Technologies of Information and Communication (TIC)

General Trade

Services providers

Health Services

Total Area : 12.2 million sq. Km

GDP : US $ 450 billion (2011)

Increase in Average Annual GDP growth : 5.08% from 3.51% (2010)

Global trade for COMESA countries : Over US$ 244 BN (2010)

Intra-COMESA Trade : US 18.4 BN (2011)

Investment flows : US $ 21.6 BN (2010)

Total Imports Volumes : US $ 137 BN (2010) at 16%

Total Exports Volumes : US $ 107 BN (2010) at 26%

Common Market for Eastern and Southern Africa - Region : More than 450 million people

Membership : 20 countries : Burundi, Comoros, DR Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, South Sudan, Swaziland, Uganda, Zambia, Zimbabwe

Djibouti an open gate to the COMESA

The COMESA-EAC-SADC Tripartite

EAC

COMESA

SADC East African Community

Southern African Development Community

CHAMBER OF COMMERCE OF DJIBOUTI

Angola, Botswana, Burundi, Comoros, Congo DR, Djibouti, Egypt,Eritrea, Ethiopia, Kenya, Lesotho, Libya, Madagascar, Malawi,

Mauritius, Mozambique, Namibia, Rwanda, Seychelles, South Africa, Sudan, Southern Sudan, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe

The New Region

27 countries Over 581 million Inhabitants GDP of plus 875 billion USD$ 58% of the entire GDP of Africa as a continent

THE BIGGEST ECONOMIC REGIONAL GROUPING IN AFRICA

The New Region in figures

Areas of Investment in the region Infrastructure Agro-industry and agro-processing Real Estate Development New Technology Tourism

Member of : WTO, IGAD, Arab League, African Union, ACP/UE, United Nationals and beneficiary country under AGOA

Private sector partnership network : Comesa Business Council (CBC), IGAD Business Council, Pan African Chamber of Commerce, Francophone Chamber of Commerce, Islamic Chamber of Commerce and Industry (ICCI) ... And many bilateral partnerships

Republic of Djibouti Worldwide Partnership

1- Transport and logistics activities : Key sector of Djibouti’s Economy

20 % of GDP Harbour activities income : 20-25 % public income 10 % of working population Growth opportunity of the sector :

Perspective of strong and sustainable economic growth in Ethiopia (~8% a year)

Perspective of important commercial partnership with the recently independent South Sudan

Perspective of development of new connected activities: truckway and connected activities (mechanic), road building and management, ….

Regional Economic Integration with the COMESA

Investment opportunities

2- Tourism : Great potential but underexploited

Geological sites, which are unique in their kinds

Marine fauna among the richest to the world

Cultural diversity due to cosmopolitan communities

Growth opportunity of the sector Hotel infrastructures in development An airport served by 6 international airlines Possibility of combined tourism with Region countries (Ethiopia, Kenya, Yemen) Goal in 2030: Djibouti wish to welcome more than 500.000 tourists per year

Investment opportunities

3- Renewable energies : Key sector For Djibouti’s Economy development

A solar energy potential of 2240 Kwh / sqm / year

A geothermal potential around 170 Mwh / year

A wind potential around an annual average of 9.2 m/s

Growth opportunity of the sector : Huge public-private projects underdevelopment

Investment opportunities

4- Fishing and halieutics resources: Plentiful resources but under-exploited

An annual production of 1500 tons (2011)

A potential of fishing estimated at 48 000 tons / year

Relatively low capital inflow for the small-scale fishing but with good profitability

Growth opportunity of the sector: Possibility of exports to the sub-region countries

(Ethiopia and South Sudan) Possibility of exports to the UE-ACP countries

Investment opportunities

Because Djibouti has a strategic geographical location in the region

Because it is situated on the 2nd sea route in the world

Because its political stability is an additional asset

Because foreigners and nationals benefit the same advantages

Because its currency linked to the dollar is freely convertible

Because Djibouti is the main corridor of the region, thanks to its port equipments

Because its telecommunication systemranks among the best in Africa

Because Djibouti is an open gate to a market of more than 450 million inhabitants, the COMESA.

Because its financial system which is free of any kind of exchange control provides opportunity

to a full freedom of money transfer

Tel : (+253) 21 35 10 70Fax : (+253) 21 35 00 96Email Address : ccd@intnet.dj

Website : www.ccd.dj

19072013

CHAMBER OF COMMERCE OF DJIBOUTI

Thank you !Hope to see you soon…