PENRESA FOCUS ON DJIBOUTI
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PENRESA FOCUS ON DJIBOUTI
FEBRUARY 2020 EDITION
in partnership with
H.E. Ismail Omar Guelleh
President of Djibouti
Hon. Yonis Ali Guedi
Minister of Energy and Natural Resources
Hon. Ilyas Moussa Dawaleh
Minister of Economics and Finance
Ahmed Osman Ali
Governor of the Central Bank of Djibouti
DJIBOUTI - Africa’s Gateway To The East
Djibouti
On The Shores
Of Tomorrow
Infrastructures, finance, green energy: set on implementing
its Vision 2035, Djibouti is not afraid of taking bold decisions.
N
estled on the upper side of the Horn of develop your country, you must have
Africa, just where the Red Sea bends connectivity,” explains Abdourahman Ali,
and gradually seeps into the Arabian Chief Executive Officer of Air Djibouti, the
Sea through the Gulf of Aden, Djibouti is national flag carrier airline. The country is
leaping forward at an incredible pace, investing in interconnectivity to ensure all
jumping from 154th in 2017 to the 99th cargos entering the country by sea can be
position in the 2018 World Bank Ease of conveniently transferred to the Djibouti
Doing Business Report. “The government airport to be shipped to nearby countries
of Djibouti has engaged into an ambitious in a quick and cost-efficient way.
reform programme,” explains Hon. Ilyas New terminals have been progressively
In partnership with
Moussa Dawaleh, Djibouti’s Minister of built from 2006 onwards, allowing the
Economics and Finance. “Our targeted country to handle all sorts of cargos,
interventions in the business environment from fuels to construction materials. The
www.penresa.com aim at nurturing a new dynamic to shift latest addition to Djibouti’s impressive
info@penresa.com the mindset from the public sector to port lineup is the Doraleh Multi-purpose
private initiative, create employment Port: 200 metres of quay length, 16 quay
This report is sponsored and produced by PENRESA instead of looking for one.” cranes, 690 hectares of total area and
and did not involve the reporting and editing staff of Vision 2035 is the government’s 22,000 TEUs of handling capacity for an
any third party. strategy aimed at diversifying the annual capacity of over 8 million tonnes.
economy, ensuring consistent GDP Further terminals are under construction
THIS REPORT WAS POSSIBLE THANKS TO:
growth, tripling income per capita and in the northern region of the country.
creating over 200,000 jobs within the A country so deeply committed to
next fifteen years. “To promote the building a stronger and richer future for
modernisation of the system in Djibouti, its population is obviously bound to make
as well as its interconnection with the bold choices, especially when it comes to
world, we are implementing modern energy supply: the government of Djibouti
infrastructures for the inter-payment aims to meet 100% of its energy demand
system,” states Ahmed Osman Ali, with renewable sources, to fight pollution
Governor of the Central Bank of Djibouti. and decrease the country’s dependence
From a logistics point of view, Djibouti on imported energy. Djibouti is on the
is naturally poised to be a gateway for verge of a green revolution: yet another
nearby countries like Ethiopia, Somalia ambitious goal for a country that wants to
and Rwanda, an ideal hub for sea and keep going forward and is never afraid to
air cargo transportation: “If you want to think outside of the box.
FEBRUARY 2020 • FORBES AFRICA | 3
Ministers Round Table
DJIBOUTI - Africa’s Gateway To The East
Hon. Mahmoud
Hon. Ilyas Ali Youssouf, Hon. Mohamed Hon. Yonis
Moussa Minister Ahmed Awaleh, Ali Guedi,
Dawaleh, of Foreign Minister of Minister
Minister of Affairs and Agriculture, of Energy
Economics International Livestock, and Natural
and Finance Cooperation & Fisheries Resources
Developing And Connecting Djibouti
Through A World Platform
Penresa sat down with Hon. Youssouf, Minister of Foreign Affairs and International
Cooperation, Hon. Awaleh, Minister of Agriculture, Livestock, & Fisheries, Hon. Dawaleh,
Minister of Economics and Finance and Hon. Guedi, Minister Minister of Energy & Water.
What big project is your ministry focused on right now? Hon. Guedi: We are working toward 100% green energy. We are
developing other forms of energy like wind and geothermal
Hon. Youssouf: We need to speed up the process of creating energy. We never had a real project in geothermal, but at the
job opportunities. First, in education and then in job creation. end of April/beginning of May 2019, the presence of geothermal
That is why we are compelled to seek opportunities for young energy in the Fiale project was confirmed. The three drillings
people and women. Djibouti has signed the ICSID Convention. were done at a depth of 2,600 metres. Now, we are going to
You need a legal framework to reassure investors that their move to the next step, the production. We have signed all
investment is protected. We hope that it will boost the volume necessary contracts as far as wind energy is concerned after
of the investment, because more investment means more job one year of negotiations to finalise the production of 60 MW
opportunities. Vision 2035 is our development plan over the of wind energy with African Financial Cooperation in Ghoubet.
next 20 years that will help change the livelihood of people. As of now, the windmills are already being produced, using
Djibouti has also signed the African Continental Free Trade German technology. Completion of the project is 12 months,
Agreement (AfCFTA). It is vital for African countries to create that so in April/May 2020, we will start with the production of wind
common market because trade is the engine of the economy. energy. We have also developed solar energy. The French
When you have that framework, that facility to boost and step company Engie contacted us for a first project for solar energy.
up the intra-African trade, it creates job opportunities, wealth, We have already signed with EngieAfrique for the development
rapprochement between countries and community. We believe of 30 MW solar station on the site of Grand Bara. This will be the
that the bigger the market is, the bigger the opportunities to first step and we hope that we will finalise all the documents
create job and wealth. for the project in two to three months. As you can see, the
energy revolution in Djibouti is coming.
Hon. Awaleh: The Ministry is involved in several projects
focused on sustainable agriculture. Djibouti has an arid Hon. Dawaleh: The growth over the past five years has been
ecosystem; it is more or less a desert with black stones. The 6-7%, which is comfortable. The balance of payment is now at
rainfall is on average 150mm per year and we have no rivers. a good level; in the past we had a very high debt, while now
The best three activities for Djibouti (because of saline ground) it is at 70%. All the macro-economic indicators are reasonable
are date palms, greenhouse horticulture and livestock. One for Djibouti. The driving force of the economy of Djibouti is
example is that we have a laboratory here for date palms. There the port, the air, the airport and the infrastructure. We have
are a lot of varieties, and the best variety is called Medjool. One six ports, we have trains. We deliver the flow of goods from
kg of Medjool is about $US30. It is the highest price for a fruit. It COMESA countries to the world. We also intend to handle the
is very difficult to get this variety: California, Israel and Morocco flow of information and finance, of capital between COMESA
have it. One tree takes eight years to grow, and in all its life, a and Djibouti because we want to be a hub for money, since
date palm will give you 10-20 shoots. The problem is that we our currency is pegged on the dollar. All people in the Eastern
do not have date palms here in Djibouti. So, we have done the African region should put their money in Djibouti. We want
research and we have discovered that we can produce date to be the hub of the flow of capital and information, since
palms from cells. It has taken us 5-6 years, and we have chosen we have seven telecommunication submarine cables, not
the best varieties. In the world, we are the fourth laboratory only for Djibouti, Somaliland and Ethiopia, since the cable
which produces Medjool dates in this way. We are proud to have encompassing Africa runs through Djibouti. So, our focus areas
introduced date palms specific for Djibouti. are transport, flow of information and capital.
4 | FORBES AFRICA • FEBRUARY 2020
Finance
With a lack of restriction on FDI, Djibouti’s economy is set to take off
DJIBOUTI - Africa’s Gateway To The East
Expanding And substantial tax breaks and its Free Zone. “We have the biggest
Free Zone in the area,” states Ahmed Hamid Al-Dheeb, CEO of CAC
International Bank. “Djibouti has a very strategic location, and
Modernising Djibouti’s the stability of the country is very well appreciated. We will be a
financial, transit, trading and logistic hub.”
Financial Horizon
The government has worked hard to improve the nation’s ease
of doing business, jumping from 154th to 99th in the World Bank’s
ease of doing business ranking in 2018. “The President himself has
put some considerable efforts in law reforms with the new Code
Djibouti’s financial strategies of Civil Procedure and Code of Commerce, which today facilitates
the creation of a business,” explains Comlan David Ocahoumare,
including improving ease of business, Deputy General Manager of the Bank of Africa.
implementing Islamic banking Djibouti’s banking sector has also experienced rapid expansion in
recent years, providing the continent with the roadmap on Islamic
and catering to financial inclusion finance as part of its core strategy in financial inclusion. “Monetary
aim to secure its stable outcome. policy, like everywhere, is part of the measures we put in place for
the promotion of the country,” relates Ahmed Osman Ali, Governor
of Central Bank of Djibouti. “So, we have developed a lot of ideas. The
Over the past decade, Djibouti’s service-based economy has been first thing is the modernisation of the banking system in Djibouti,
subject to sustained growth and prosperity. A crucial factor to this the second is to attract more banking, the third is to promote the
has been its complete lack of restriction on foreign exchange, financing of public and private economy, the fourth is to ameliorate
including the conversion and transference of funds, providing financial inclusion, the fifth is to update the strategy every year.”
US$240 million annually in foreign direct investment (FDI) and Djibouti has flung open the doors on financial expansion and
boosting the nation’s GDP growth. With the Djibouti franc pegged opportunity. Abdulraqeb F.A Salem, General Manager of Saba African
to the US dollar at a fixed exchange rate of 177.71 Djibouti francs, Bank agrees, “Djibouti is like a hub for other investors to come and
Djibouti’s modernisation of its economy depends upon open trade, invest here, especially due to our political stability.”
FEBRUARY 2020 • FORBES AFRICA | 5
Afreximbank Focus on Djibouti
DJIBOUTI - Africa’s Gateway To The East
Driving Djibouti’s
Development Goals
Afreximbank has pledged to work with public and private
entities in Djibouti in order to deploy the Bank’s trade finance
programmes in support of the country’s economic priorities.
A
small nation in the Horn of Africa, Djibouti’s location Due to its location and the government’s recent
along the Gulf of Aden, its proximity to the Mandeb policy reforms, the country is attracting more business
Strait, the southern entrance to the Suez Canal and and investment than ever. Djibouti has recently
Yemen gives the small African nation a strategic role implemented a policy of international free trade zones,
to play along one of the world’s busiest trade routes. which enables foreigners to start business in the
Ten percent of the world’s oil exports and 20% of all country easily and without paying profit taxes. These
commercial goods traverse through the Suez Canal, policies have been effective in recent years to attract
passing close to Djibouti. With the vision to be the trade much attention to the tiny nation as it seeks to create
finance bank for Africa, Djibouti plays an increasingly a conducive business environment. Already, our
bigger role within the Afreximbank portfolio. partnership has seen positive effects with Djibouti’s
Djibouti signed onto the African Export-Import Ease of Doing Business ranking increasing in 2018 to
Bank Establishment Agreement in 2016 marking the 99 up from 154 in 2017.
commencement of the partnership. At the signing of Djibouti is one of the many cases in which
the agreement, President Ismaïl Omar Guelleh stated partnering with Afreximbank has helped countries
that this partnership will help the country advance its develop their trade sectors. In 2017 Afreximbank
trade related infrastructure and the areas of logistics focused on a forward looking initiative called Impact
and renewable energy. The bank has also helped to 2021, Africa Transformed. This initiative is fixed
promote and finance Djibouti’s industrial sector in the on strengthening four main sectors: intra-Africa
area of export manufacturing. With help in financing trade, industrialisation and export development,
from Afreximbank, Djibouti has been able to further trade finance leadership and financial soundness
leverage its important geographic position to its and performance. Just in 2018, Afreximbank saw
advantage. It will also flourish in new areas of the 24% overall growth with a US$55 million increase
economy such as tourism and investment. in income. Up from US$229.8 million total income
During its partnership, Afreximbank has pledged in 2017, the total income for 2018 was US$285.4
to work with public and private entities in Djibouti and million. Afreximbank also saw a 13% growth in its
would link them with other African and international assets totalling US$13.42 billion for 2018 due to a
economic players in order to deploy the Bank’s trade rise in net loans and advances. The bank’s operating
finance programmes in support of the country’s profit saw an exceptional rise in 2018 to US$394.8
priorities, including the development of renewal million from US$109 million in 2017.
energy infrastructure through the Bank’s funding This growth is continuing into 2019 with a 59%
arrangement with KFW, the German development bank, increase in total revenues for the first three months
construction of world-class tourism amenities under of the year compared to the same timeframe in 2018.
the Bank’s CONTOUR facility and expansion of Djibouti’s Though it is a small country, Djibouti’s location elevates
transport and logistics infrastructure. The trade and its status in geopolitics, and it is only logical to assume
infrastructure development plans initiated by Djibouti that its importance will continue to grow as nations turn
are very impressive and have the potential to transform their attentions to Africa and the Middle East. With a
the country and to make an impact, not only in the positive outlook ahead and a successful year behind us,
region but across Africa, as the country moves toward Afreximbank is well on its way of achieving its vision and
becoming a key logistics hub for the continent. assisting Djibouti in its development goals.
The African Export-Import Bank (Afreximbank) is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African
trade. The Bank was established in October 1993 by African governments, African private and institutional investors and non-African investors. Its two basic constitutive
documents are the Establishment Agreement, which gives it the status of an international organisation, and the Charter, which governs its corporate structure and
operations. Since 1994, it has approved more than US$67 billion in credit facilities for African businesses, including US$7.2 billion in 2018. Afreximbank had total assets of
US$13.4 billion as at 31 December 2018. It is rated BBB+ (GCR), Baa1 (Moody’s) and BBB- (Fitch). The Bank is headquartered in Cairo.
6 | FORBES AFRICA • FEBRUARY 2020
GXA
Sales Manager David Boucher explains how GXA aids Djibouti’s Vision 2035
DJIBOUTI - Africa’s Gateway To The East
Insuring Djibouti’s Continuous Growth
GXA’s Yellow Card gives the green light to regional travel.
Could you share a little bit about GXA? In what ways does GXA facilitate business?
GXA Assurances S.A. was created in 2001 and We facilitate business with the Yellow Card, which is an in-
has grown a lot since then. Djibouti has made big surance card that covers all vehicles that move in the region.
infrastructure improvements, many of which have been If a vehicle is coming from Ethiopia to Djibouti, the Yellow
within the last 5 years. This progress has been very Card allows them to still be insured from accidents. Before
important for our evolution as a company. Djibouti’s they would have to have insurance in each country, but
success and growth has allowed us to create new now one card covers all the countries. However, our biggest
products, which have given us more business. These strength to facilitate business is being able to insure and se-
are always good indicators for incoming investors. cure all types of businesses for all aspects of their activities,
no matter their size, with the support of strong, well-known
Part of the Vision 2025 is to develop human capital. David Boucher, and first-ranked international reinsurers.
How does GXA contribute to this goal? Sales Manager
This is a very important endeavour. The more Djibouti Why is now the best time to come and invest in Djibouti?
grows and the more our company grows, the more employees we Our ports have huge capacity, there is the Ethiopian railway
will need. We support high quality training of our staff. The insurance being developed and there is a project for a new airport as well.
sector is a very important and particular sector. We are focused on Now, we can open a company in Djibouti in less than three days.
comprehensive training so our employees continue to provide excel- As for GXA, we are the biggest insurers on the market. Our clients
lent customer service while permitting them to grow and develop pro- need to be sure if there is a big claim, they have big insurers who
fessionally within the company. With this plan, everyone succeeds. are able to settle the claim quickly and efficiently.
FEBRUARY 2020 • FORBES AFRICA | 7
Ahmed Osman Ali
Governor of the Central Bank of Djibouti
DJIBOUTI - Africa’s Gateway To The East
The Central Bank Fights Financial
Exclusion And Eases Business
Governor Osman Ali vows to do even more to attract
banking activities to Djibouti and enable further growth.
Central Bank of Djibouti Governor Ahmed Osman Ali is The African Continental Free Trade Agreement is
a key player in the nation’s strategy of enabling infra- meant to create a tariff-free continent that could
structure improvement and economy diversification boost intra-African trade. Do you feel this will
to become an emerging country by 2035. Penresa sat contribute to Djibouti’s economic growth?
with him to discuss the achievements of his mandate It is a great opportunity: it will grant access
and his plans to keep supporting Djibouti’s Vision 2035. to a wider market to companies operating
here. To take advantage of increased regional
How is the Central Bank working to help Djibouti be- integration (Djibouti is a founding member of
come a middle-income country by 2035? COMESA), we invested heavily in port, road,
The ambition to establish Djibouti as an emerging rail and telecommunications. Djibouti is AGOA
economy by 2035 is part of the national develop- eligible, which is significant for our Indian and
ment strategy pursued by the government’s sec- Chinese partners.
toral policies. The objective is to transform Djibouti We remain very confident about the posi-
“There is nothing into an international logistic and financial hub. tive effects of the African Continental Free Trade
The Central Bank is thus working for a more dy- Agreement in terms of activities, growth and job
we do not have namic, efficient, sustainable and inclusive financial creation.
sector. An initial comprehensive reform package
here. The future began in the early 2000s: since then, the sector You were awarded Central Banker of the Year
is in Africa, so it has grown from five to 36 financial institutions (in- 2018 at the Global Islamic Finance Award. What
cluding 11 banks, from two in 2006). Subsequently, did you do to expand Islamic Finance?
is time to come.” to expand the financial sector, our priorities are fo- We realised that a significant portion of our pop-
cused on the following points: ulation was marginalised in the financial sphere
- The viability of the sector with the impressive due to the lack of Shariah compliant financial
strengthening of the supervisory framework, as products. We have made the necessary efforts to
well as anti-money laundering and anti-terrorist introduce and develop Islamic finance, and today
financing measures. Reference texts are regular- the three active Islamic banks (the first of which
ly updated according to international standards; established in 2006) represent 20% of the mar-
- The promotion of financial inclusion through ket. We also launched an annual Summit bringing
initiatives such as the right to an account, with together in Djibouti the institutions and eminent
banks being legally obliged to open an account experts of International Islamic finance.
for people with a minimum income of DJF 40,000 The award we received is an acknowledgement
(€200). Also worth mentioning is the develop- of the efforts undertaken by all stakeholders to
ment of microfinance and mobile banking. To achieve these results.
ease access to credit for SMEs/SMIs we have
established a Partial Credit Guarantee Fund and For the readers of FORBES AFRICA and the dis-
initiated the necessary reforms to launch leasing cerning investor, why is NOW the best time to
activities in Djibouti; invest in Djibouti?
- The modernisation of the national financial infra- We have worked hard to improve our investment
structure with the introduction of i) a modern na- environment. In terms of investors’ protection,
Banque Centrale de Djibouti tional payment system taking into account the Djibouti ranked second worldwide in the World
B.P. 2118, Djibouti new paperless electronic payments (real-time Bank Doing Business 2019 ranking, gaining 94
Tel: (253) 21 35 27 51 gross settlement, automated clearing house...); places compared to 2018. Djibouti offers great po-
Fax: (253) 21 35 12 09
www.banque-centrale.dj
and ii) a new fully automated credit information tential to investors in various sectors, as well as an
bndj@intnet.dj system. attractive fiscal environment.
8 | FORBES AFRICA • FEBRUARY 2020
Salaam African Bank
A leading institution in Islamic banking and more
DJIBOUTI - Africa’s Gateway To The East
Investing In The Future Of Djibouti
Providing quality banking services while creating employment for locals.
Incorporated in 2007, Salaam African Bank takes “We are here to stay, because we believe in long-term
pride in being the first private bank to establish its relationships. We are here to contribute to create
headquarters in the Republic of Djibouti and has jobs in this country. Djibouti’s economy is based on
quickly risen to become one of the most prominent services, and those services must be constantly
financial institutions in the country and in the whole improved. Therefore, we’re not interested in investing
East African region. With the assets of banks and in the usual corporate banking: we want to invest in
other institutions offering Islamic products reaching quality companies that work here and employ locals.”
today an approximate value of US$300 million, The bank’s commitment to job creation is not
Sharia-compliant banking has progressively become limited to financial services but extends to all its
a key focus for all banks operating in East Africa, sectors of activity: “We are involved in several real
and Salaam African Bank can be regarded as one of Ali Abdallah Hettam, estate investments, such as the construction of the
the leading institutions in the sector: its outstanding Chairman Salaam village,” says Ali Abdallah Hettam. “We’re
Islamic financial services have earned the bank the relatively new to the market, but our customer-
2016 award for Best Sharia commercial bank in East Africa. focused mentality allowed us to establish ourselves quickly
Current Chairman Ali Abdallah Hettam placed his forty years among the region’s major players. Today, we’re one of the main
of experience in logistics, transportation and management to the employers in Djibouti: we give work to a great number of people in
service of Djibouti, aiming to create employment and increase banking, real estate, logistics, etc. I think we’re very well suited to
financial inclusion in the country: “We use technology to offer serve not only Djibouti, not only East Africa, but Africa as a whole,
the best services we can, especially in Islamic banking,” he says. connecting it to the world.”
FEBRUARY 2020 • FORBES AFRICA | 9
Saba African Bank
One of the leading banks in the Horn of Africa
DJIBOUTI - Africa’s Gateway To The East
Evolving Services For A Developing Country
S.A.B. is expanding beyond banking towards real estate and insurance.
Saba African Bank was inaugurated in 2018 as an the insurance company will begin operation in
independent branch of the Saba Islamic Bank and aims approximately three months.”
to become one of the leading banks in Djibouti as well Recently, the President of Djibouti, His Excellency
as in other Horn of Africa countries. Saba African Bank Ismaïl Omar Guelleh has emphasised the need to
is riding the wave of the rapid expansion experienced attract more foreign investors into the country as a
in recent years by the Djibouti banking sector, coupled way to drive development and further Djibouti’s vision
with an increase in FDI for infrastructure projects. “We to become a middle-income economy by 2035, and
plan to have good relationships with other banks Abdulraqeb F.A Salem strongly believes that the small
in Djibouti and neighbouring countries,” explains but mighty nation is ripe with untapped potential:
Abdulraqeb F.A Salem, General Manager of Saba African “Djibouti is one of Africa’s developing countries, and its
Bank. “We want to establish a stringent anti-money Abdulraqeb F.A Salem, political stability greatly contributes to make it a hub for
laundering and anti-terrorism platform and offer great General Manager potential foreign investors: new people are coming here
financial services.” of Saba African Bank to invest in a number of sectors, from banking to retail
With Islamic banking growing exponentially and many others. Besides that, Djibouti benefits from
in recent years, S.A.B. has tailored its services to the needs a strategic geographic location, which makes the Djibouti port one
and values of Islamic investors. “We have different kinds of of the biggest in Africa, a veritable entrance to many surrounding
investment and financing programmes that we provide for countries. These are all factors that help to attract the infrastructure
customers here,’’ says Abdulraqeb F.A Salem. “Furthermore, investments this country needs to advance further: hotels,
we are planning to expand beyond banking services, into hospitals, universities. This is why it is a good moment to invest in
real estate investments and Islamic insurance. In our vision, Djibouti. There’s so much good in the heart of this country.”
10 | FORBES AFRICA • FEBRUARY 2020CAC International Bank
State-of-the-art quality banking with a local focus
DJIBOUTI - Africa’s Gateway To The East
Bringing The International Digital
Banking Experience To Djibouti
With the vision to be recognised results achieved in its first ten years of ac-
globally as a dynamic financial services tivity, CAC International Bank does not rest
provider, CAC International Bank has on its laurels and continuously strives to
curated an identity that helps it stand improve its financial services in the region.
out in the region. CAC International Furthermore, CAC International Bank is in
Bank, as a leading financial institution the process of having its Islamic banking
in Djibouti, is transforming banking via license upgraded by the Central Bank.
digital banking products in the ever-
evolving and vigorous world of finance. International Banking
Experience & Innovation
With precision services, better customer CAC International Bank has always been
care and quality banking solutions craft- the frontrunner in the region when it
ed for a growing and expanding economy, comes to bringing the international bank-
CAC International Bank has risen to be- ing experience infused with digital bank-
come one of the most influential players ing solutions to the local market. The bank
in Djibouti. “Operating in Djibouti, has tremendous achievements in the de-
velopment of electronic banking products
The Beginnings CAC International Bank and solutions. With the electronic pay-
CAC International Bank started its ments becoming the norm globally, CAC
banking operations in 2009, opening its works to facilitate International Bank is striving to challenge
first branch in the Quartier Commercial
in the heart of Djibouti and has
international banking the current cash-based economy and is
assisting the region in transmuting into a
managed to become one of the leading experience for their digital economy.
banks in the region and a recognised
leader in technology, digital banking customers.” The Expanding Djibouti
and financial innovation. Being a bank The small, yet fierce, country of Djibouti has
that solely operates in Djibouti, CAC Mehdhar Abdullah recently leaped from 154th position to the
International Bank has rapidly extended 99th position in the World Bank Business
its capacities to facilitate all its clients Al-Sakkaf, Report Index, and the government aims
with global banking experience. Its Chairman of to get into the top fifty. CAC International
amazing success lies in consistent Bank, as an international banking trend-
efficacy, proficiency and providing CAC International Bank setter in Djibouti, considers the country
prudent solutions that challenge the an ideal place for prospective investors.
cash economy, transforming it into a in 2018 and 2019, as well as the Best According to Ahmed Hamid Al-Dheeb, the
digital economy of the future. Bank Award in the Republic of Djibouti CEO of CAC International Bank, foreign in-
in 2019 by Global Finance. vestments are already playing a pivotal
Awards, Recognition & Accolades part in the country. With a picture-perfect
From the Golden Europe Award for Present Scenario strategic and geographical location, the
quality to the Honours in Excellence CAC International Bank is doubling up its country of Djibouti is sure to become an
and Compliance with International efforts to reduce physical transactions investor’s paradise.
Banking Rules and Regulations, as and encourage all its clients to shift to-
well as being recognised as the Best wards online, mobile and digital banking
Bank multiple times in the Republic of solutions. At CAC International Bank, it’s all
Djibouti, CAC International Bank has about complete digitalisation of banking
surpassed every other financial insti- and precision online banking solutions CAC International Bank Head Office
tution in the region. CAC International that replace traditional banking schemes Immeuble Dar al Karam
Bank has been awarded the Excellence or systems. A huge amount of customers Rue de Marseille - Djibouti
P.O. Box: 1868
in Compliance award by the Union of use mobile and online banking services in Tel: 00253 21356363
Arab Banks for two consecutive years, the Djibouti region. Despite the impressive Fax: 00253 21356755
FEBRUARY 2020 • FORBES AFRICA | 11Energy
Djibouti’s ambitious goal to 100% renewable energy
DJIBOUTI - Africa’s Gateway To The East
Green Economy 2035 exports of the resource to nearby countries, aiding in the goal
to rely less on importing energy. SIHD is focused on expanding
and improving the oil terminal in Djibouti so that they may
supply larger regions. Dabar Adaweh Ladieh, General Director
Focusing on energy independence of SIHD, explains: “The demand of oil products is growing very
and renewables, Djibouti is banking fast, at a rate of 15% per year. We want to serve the whole
region, because [the terminal] has an important stocking
on geothermal energy. capacity. Once we have this new stocking site, the capacity of
it will be 150,000 cubic metres to be reached in three phases
of development.”
As Djibouti strives to become more independent by relying less on Aside from the oil industry, Djibouti has aligned its attention
imported energy sources and providing cheaper and more reliable to renewable energy. The Ministry of Energy in charge of
power to its citizens, it has channelled its focus on diversifying the Natural Resources has devoted itself to the development
country’s existing energy sources and by investing in renewable of renewable energy sources to diversify the economy and
energy such as wind, solar and geothermal energy. ensure that Djibouti does not rely solely on only oil like so
In the oil and gas sector, UCIG Oil and Gas has developed a large many economies have in the past. According to the vision of
network in the oil industry that distributes to over 20 countries. President Ismaïl Omar Guelleh, Djibouti’s future will operate
With its wide array of gasoline and diesel services, UCIG provides on 100% renewable energy and is now developing solar,
a diverse selection of fuel for multiple sectors including fuel for geothermal and wind energy. Companies such as SIHD are
petrol and diesel-driven vehicles, aviation fuels for commercial investing more in renewable energy than in fossil fuel energy.
airlines and military-grade aircraft, kerosene for light and Hon. Yonis Ali Guedi, Minister of Energy, states, “All these
heating in homes and bitumen to the construction sector. With projects are to develop Djibouti, making sure that energy
this kind of strength in the energy sector, Djibouti has proven to is abundant and cheap, to attract investors, jobs can be
be a door for expansion into other markets. created and the prosperity of our citizens can be increased.
The Société Internationale des Hydrocarbures (SIHD) is Development always needs energy, so the country needs to
also working to improve the oil and gas sector by organising provide itself with green and clean energy.”
12 | FORBES AFRICA • FEBRUARY 2020Société International des Hydrocarbures de Djibouti (SIHD)
Increasing stocking capacity to foster regional growth
DJIBOUTI - Africa’s Gateway To The East
Supplying Djibouti And Neighbouring
Countries With Quality Oil Products
SIHD is working hard to ensure the SIHD intends to devel-
country takes full advantage of its op its business by diver-
role as a natural maritime hub. sifying its imports in-
cluding the “heavy fuel”
SIHD (Société Internationale des but is unfortunately lim-
Hydrocarbures de Djibouti) was ited in the diversification
created in 2000 and is tasked with of its products due to the
the import of oil products for the lack of storage within
Djiboutian population. Driven by a the terminal. This is pre-
modern and international vision, cisely why SIHD is prior-
SIHD also contributes to the sup- itising the construction
ply of oil products in neighbouring of a new multi-product
countries, such as Somalia and terminal that will be-
South Sudan. “SIHD, in partnership come a logistics tool for
with other companies, is building a all East Africa.
new stocking site in the Damerjog Due to its strategic
economic zone where there are geographical position
also other projects to be realised, with one of the busi-
like the port and the stocking site est maritime routes
of natural gas,” says Dabar Adaweh worldwide, as well as
Ladieh, General Manager of the its ever-growing infra-
company. “So, we are proceeding structures, Djibouti is
with this global vision in mind.” naturally poised to act as
Recently, the demand of oil products a crucial international maritime hub. Its
in Djibouti and surrounding countries has “Our vision is paving enticing environment and its financial
skyrocketed, marking a yearly growth the way to good and monetary stability have made it an
rate of 15%, and the oil terminal in Djibouti, extraordinarily attractive destination
which handles most of the oil products stocking capacity, for many investors, especially in the
directed to Djibouti and Ethiopia, is out infrastructure and tourism sector. The
of capacity. Therefore, plans for the con- good transportation wave of foreign investment is allowing
struction of a new stocking site have been and logistics of the this resourceful country to constantly
greenlit to increase the available storage, update its infrastructural landscape
relieve the pressure on the existing termi- products.” and improve the quantity and quality
nal and avoid costly service disruptions: of its aerial, maritime and terrestrial
“We are in the final phase of the planning,” transports. “That is why Djiboutian
explains Ladieh. “Construction will start at products not only Djibouti,” states Ladieh. ports, for instance, are destined to
the end of the year and will last two years. “These are our plans for the future. Our serve the whole region,” explains
We want to serve the whole region. It is vision is paving the way to good stocking Ladieh. “Goods from Europe, the Middle
an opportunity that we do not have now capacity, good transportation and logis- East and Asia will arrive here. We will
because of the current capacity of the tics of the products.” At the same time, have an exchange centre thanks to
existing terminal.” Once complete, the SIHD is committed to participating to fur- our strategic plan and the President’s
new stocking site will have a capacity of ther research of oil in Djibouti: “There is oil vision to develop infrastructure.” The
160,000 to 250,000 cubic metres in the here,” adds Ladieh. “We need to deepen best for East Africa’s gateway, he adds,
first phase which will enable Djibouti to the search and develop the oil products is yet to come.
supply all the countries in the surround- first. We will also eventually have our own
ing region, in accordance with SIHD’s goal tanker in order to export petroleum prod-
of fostering generalised growth in the ucts to regional countries, making Djibouti Rue Jean Jaurés
East African market: “We aim at develop- a hub of inter-exchange of import and ex- P.O. Box: 121
ing the whole region in terms of petroleum port of petroleum products.” République de Djibouti
FEBRUARY 2020 • FORBES AFRICA | 13Transport
Djibouti’s strategic location serves East Africa as a gateway to the world
DJIBOUTI - Africa’s Gateway To The East
Djibouti’s Goal To Become A Global Trade Hub
Djibouti is set to connect global business landlocked Rwanda. Our vision is sea and air, so when cargo comes
by sea, we can take it to the airport to be taken by air.” Air Djibouti
with booming African markets and drive also operates within the free zone, working with ports and other
forward regional integration and growth. means of transportation.
The Doraleh Multi-purpose Port is a state of the art terminal
that plays a direct role in the free zone and connectivity of the
Djibouti holds a strategic place in Africa due to its connection with country. This port is also a source for job creation that ensures
the Middle East, Europe and Asia, serving as a gateway to the world the economic stability of its human capital. Wahib Daher Aden,
and vice-versa. Over the years, Djibouti has been a country that CEO of Doraleh Multi-purpose Port, says, “The biggest investment
has maintained admirable stable relations in all respects. Hon. that the government has done is job creation. A training institute
Mahmoud Ali Youssouf, Minister of Foreign Affairs, says, “Djibouti is has been created in partnership with the European Union. We
very well located, being on the Strait of Bab al-Mandab and the Gulf have bought simulators and equipment for the training. Before
of Aden, which are very important for international trade. As a small we were sending our people to Europe or to China, which was
country, we have shown from the very beginning that we wanted to very costly. Now we have one person at the University of Djibouti,
cooperate with our neighbours.” who is the head of the training institute. Every year they train
When neighbouring countries are united in peace, the doors hundreds of workers to work at the ports.”
of opportunity are opened across all sectors, especially in “We want Africa to open,” explains Ali. “Africa is trading more
transportation. The flag carrier of Djibouti has witnessed an with external countries than amongst themselves. We want to be
increased movement of cargo in the region. Abdourahman Ali, the entry of east Africa and beyond. For us, we want to be open, we
CEO of Air Djibouti, explains that when an airline is created in a want the roads and rails to connect Kenya, Uganda, South Sudan,
country, it opens partnership opportunities with airlines in other Ethiopia, Djibouti and beyond that, to Rwanda to Burundi. If all these
countries. “This is why we set up an interline with Qatar Airways for countries are interconnected, it will be a huge opportunity.”
14 | FORBES AFRICA • FEBRUARY 2020Wahib Daher Aden
General Manager of Doraleh Multi-purpose Port
DJIBOUTI - Africa’s Gateway To The East
Opening The Doors
Of East Africa To The World
In the past two years, the company invested in workforce
and facilities to reinforce its key role in the region.
We sat with Wahib Daher Aden, General projects and factories in the neighbouring
Manager of Doraleh Multi-purpose Port, to countries, they need the connectivity and
hear his thoughts about the current state the ability to use Djibouti ports, which are
of the Doraleh terminal and discuss further the logistic hubs of East Africa. I think taking
developments planned to keep increasing the part in the Belt and Road Initiative was a wise
prominence of Djibouti port. choice: it is very beneficial because it allows
1,200 metres of quay length, 16 quay us to invest in the creation of railways, roads,
cranes, 690 hectares of total area, 400,000 ports and other projects. The Belt and Road
TEUs of handling capacity for containers and Initiative will help us expand and grow. As a
an annual capacity of over eight million tonnes result, we become an attractive opportunity
for general cargo. These are examples of the for future investors because we offer
impressive figures of the facilities hosted by security, logistics and adequate financial
the Doraleh Multi-purpose Port, operated by platforms.
the homonymous company.
How do you see the role of your terminals in
“African
You have been General Manager of the the upcoming years? countries need
company since it began its operations with First and foremost, we are investing heavily
the inauguration of the Multi-purpose Port to develop our human capital, and we opened to encourage
in May 2017. Can you tell us a bit about its a training institute in partnership with the business amongst
history and some of its milestones? transport and logistics association.The centre
As you said, the port is quite new. It is a state- is still in its initial stages, but we have great one another.
of-the-art terminal, and it was a necessary
step in the evolution of the Djibouti port. The old
ambitions for it, we have been buying new
equipment and training simulators. In this
Djibouti wants to
port is located at the heart of the city, so over way, we will be able to utilise this modern be the entry of
the years the government has been working to technology to train our workers in-house
move logistics out of the city itself. The process instead of sending them to Europe or China, East Africa
officially began in 2006 with the construction which was quite costly. We are currently and beyond.”
of the Horizon Terminal, which hosts the oil training hundreds of workers at all levels of
and petroleum port. The manufacture of the expertise. In the future, it is vital for us to
Container Terminal followed in late 2008. Then, keep investing: there are a lot of landlocked
along came the Doraleh Multi-purpose Port, countries on this side of Africa, and only
the construction of which started at the end of a few mega ports. With our advantageous
2014. Further, there are two additional ports in position, we aim to penetrate new markets in
the north because Djibouti is going a long way the continent because we have the capacity
to specialise its ports so that it may provide to handle a lot of cargo. If inland transport P.O.Box 2117
better services for its clients. infrastructures will allow it, we would like to Djibout - République de Djibouti
Tel: (+253) 21 31 91 92
continue to expand and create relationships Hotline: (+253) 21 31 90 00
Your company is strongly committed to the with countries that are not using our terminals Email: customercare@dmp.dj
development of Djibouti. How do you think yet. We are ready to approach these new
the Belt and Road Initiative launched by your markets and showcase our ability to handle ADDIS ABBEBA
Chinese partners is going to improve your cargo and transit efficiently, providing logistic Representative Office:
sector? solutions required by a new environment. We Tel: (+251) 11 55 33 744
Fax: (+251) 11 55 34 659
Chinese companies are investing a great have the tools to succeed and we are eager to Email: port.office.addis@gmail.com
deal in Africa, and since they have several see Africa open its doors. www.portdedjibouti.com
FEBRUARY 2020 • FORBES AFRICA | 15Abdourahman Ali Abdillahi
Chief Executive Officier Of Air Djibouti
DJIBOUTI - Africa’s Gateway To The East
Djibouti’s Phoenix
Rising From the Ashes
Abdourahman Ali has been CEO of Air Djibouti since 2017; committed to
ensuring the national fleet’s lift off, he is concerned with providing economic
stability and gain for Djibouti through the advancement of air connectivity.
From cargo airline to passenger services, with a vi- to the next generation. With Air Djibouti, the oppor-
sionary leader, and highly trained management team tunity of employment for the youth currently re-
of men and women, Air Djibouti’s future is bright. quires experienced foreign support to be passed-
on. With the go-get attitude of the youth currently
What are your current plans and projects for the employed, this is not far from happening.
company? With the inauguration of a series of flights, no-
A revolutionary achievement and a must for the tably to Jeddah (Saudi Arabia) the commissioning
development of the country is the re-emergence of of a VIP lounge, Air Djibouti once again is in the
Air Djibouti in the sky. Created in 1963, Air Djibouti spotlight. The new routes strengthen Air Djibouti’s
is not new in the aviation industry. It has its own field of action which is advancing every day in its
success story. Considered to be one of the re- legitimate ambition to leave its mark in the avia-
gions’ oldest airlines, it used to fly to three conti- tion industry in this part of the world.
nents (Africa, Europe and the Middle-East in Asia). Through these new achievements, Air Djibouti is
“If you want to Djibouti’s geographic and strategic location pro- developing another fundamental aspect of its man-
vides it with a vantage point of exploring this poten- agement: that of extending an integrated policy of
develop your tial as a multi-modal global logistics hub. Opening acquisition of provisions in all sectors linked to its
the sea port as an initial avenue to feed the East activities. Since its rebirth Air Djibouti has been par-
country, you African Region ensured that vital infrastructures ticipating in the economic growth of the country, its
must have soon came into place by land through railway and
concrete roads and now, through Air Djibouti. We
national airlines not only offer the pride of access to
complete national autonomy in the field of aviation.
connectivity. Air need to take the opportunities available to us today It also helps to influence the notion of job creation
to develop our airlines while thinking out of the box in the country, the main issue on Djibouti’s agenda.
Djibouti opens to push the President’s vision. Recruiting is likely to contribute significantly to the
reduction of unemployment. Better still, it is more
up and broadens What is your future vision for Air Djibouti and its likely to participate in the positive transformation
that possibility to relation to building up Djibouti’s economy? of the economic and financial provisions of house-
We currently fly to seven countries. Out of more holds and families.
do business.” than 50 candidates, nine males and five females Air Djibouti’s cargo has become a trusted and
were shortlisted and are now studying in the efficient freight operator in the region. A 1,500
Ninety Nines Flying School in Nairobi, Kenya. For square metre Cargo Warehouse Facility has been
the past few months, they underwent rigid train- built inside the Ambouli International Airport. This
ing in both theoretical and practical schooling to has the capacity to cater to products requiring
gain knowledge in basic air navigation. To date, 2°-8°C and 15°-25°C storage. In preparing Djibouti
after more than a year, these young candidates to becoming a logistical hub in the region, Air
have made it to their first solo flight phase pilot- Djibouti, in partnership with EFS-EBREX will de-
ing single engine aircraft. From Air Djibouti’s in- sign, build and manage a world-class cargo ware-
ception, it has been aligned with His Excellency, house facility to further increase its capacity. A
Ismail Omar Guelleh, President of the Republic freighter with a minimum capacity of 16T is also
of Djibouti’s Vision 2035. One of its pillars is on the table.
Rue de Genève, Djibouti “Investment in Human Capital”. The government In partnership with the Djibouti Tourism
Tel: + 253 21343737
info@air-djibouti.com acknowledges that in order for the economy to Authority, Air Djibouti is promoting its unexplored
www.air-djibouti.com grow it needs to provide competitive employment natural beauty.
16 | FORBES AFRICA • FEBRUARY 2020Laboratoire Central du Bâtiment et de l’Equipement (LCBE)
An irreplaceable touchstone for the construction industry
DJIBOUTI - Africa’s Gateway To The East
Supporting The Construction Sector
With Safe And Quality Infrastructures
Central Laboratory provides high expertise to companies operating in Djibouti
to ensure that buildings and national infrastructures comply with the highest
regulatory standards.
Founded in 1986 to better respond to better materials. “We are proud to say that
the economic evolution of Djibouti, the companies are appreciating our technical
Central Laboratory (LCBE) has seen its advice for the improvement of their con-
missions and attributions renewed in struction products,” says Rahima Ahmed
2005, in a bid to adapt its tasks to the Moussa, General Manager of LCBE.
new challenges that stem from Djibouti’s Carrying out such a wide range of
economic growth and ensure continued crucial tasks requires a highly skilled
development of basic infrastructure staff, and the Central Laboratory has
across the country. launched a series of initiatives to ensure
In its long-standing, tireless commit- its team members are constantly
ment to supporting the construction in- updated on the latest standards and
dustry of Djibouti, the Central Laboratory equipment available in the sector. “We
enforces all the necessary procedures are continuously training our teams,” A building is like a
to ensure the durability of infrastruc- says Moussa. “We are in the process of
tures, carrying on thorough investiga- establishing collaboration agreements human being, it might
tions on building materials employed in with other laboratories in Africa to get sick. You have to
the industry, evaluating their strengths increase our skills and know-how and
and qualities to locate any possible fee- share our experiences.” The Laboratory’s understand where the
ble points and make sure that all build- commitment is perfectly in line with
ings are ergonomic and bioclimatic. the human capital enrichment goals problem comes from
Furthermore,
Laboratory conducts ex-
the stated by the Djiboutian
government in its Vision
and then cure it.”
tensive research to im- 2035 plan. Rahima Ahmed Moussa,
prove the quality of local LCBE’s commitment to
materials and encour- quality training, however, General Manager
age their usage in the
construction industry,
is not limited to its own of LCBE
staff: the Laboratory is in
with the overall aim of the process of launching
enabling the building of a national workshop that latest Doing Business report of the World
more efficient structures will bring together all the Bank,” she explains. “The country ranked
that can adapt more ade- major players in the con- amongst the best 10 destinations for in-
quately to Djibouti’s spe- struction sector with the vestment and the ease of creating busi-
cific climate and thus im- aim of showcasing the ness with a dynamic one-stop shop.”
prove the quality of life of many technical resourc-
all Djiboutian residents. es and support solutions
The Laboratory is tasked with super- offered by the Laboratory, as well as pro-
vising the construction of major national viding all stakeholders with a chance to
infrastructures, in strict cooperation with make their needs and concerns heard.
the various governmental institutions in- Djibouti, says Moussa, is a young, dy-
volved, carrying out regular and extensive namic country in full development: from
checks on the quality and conformity of an investment point of view, it offers all the Laboratoire Central du Bâtiment
all building materials and making sure all stability and security perspective inves- et de l’Equipement (LCBE)
national standards are complied with and tors may need, as well as a fully accessible Zone Industrielle Sud Boulaos
BP: 2016. Djibouti
working with non-compliant companies free market, all the essential technology République de Djibouti
to support them in the choice of new and and fast broadband connections. “In the info@lcbe.net
18 | FORBES AFRICA • FEBRUARY 2020National Tourism Office of Djibouti
Developing and organising unique travelling experiences in Djibouti
DJIBOUTI - Africa’s Gateway To The East
From Moon-Like Landscapes
To The Depths Of The Ocean
National Tourism Office of Djibouti list, which in turn has contributed
is taking initiatives to ensure the to boost arrivals: “The Lonely Planet
sector fosters economic growth award had its first effects last year,
and employment, as outlined in the when arrivals increased by 40%,” says
government’s Vision 2035. Mohamed.
It is universally acknowledged that
National Tourism Office of Djibouti tourism is a key growth driver for
(ONTD) is the body tasked with the any country, and the government of
organisation, animation and control Djibouti is committed to ensuring the
of the tourism sector in the country, sector contributes to the economic
as well as the development of development goals outlined in its Vision
sustainable tourism. Djibouti has an 2035. According to the plan, the tourism
enormous potential in terms of tourism and travel sector should create more
development, especially due to its wide than 200,000 jobs by 2035, and ONTD is
variety of natural landscapes: among sparing no efforts to achieve that quota:
the many wonders of the country it is “We are supporting investors as much
worth remembering Lake Assal, the “There is a lot of as possible for them to be able to benefit
lowest point in Africa and the fourth from qualified workforce,” explains
lowest point in the world. Situated potential: this is the Mohamed. “We are creating some
about 120km west of Djibouti City, best moment to exploit quality reinforcement programmes for
Lake Assal lies more than 150m below people employed in our hotels. This is
sea level. Another gem is Lake Abbe, this opportunity, and aimed at creating a qualified workforce
with its naturally formed, 50m tall that can suit the needs of the industry.
limestone chimneys that give the area we are happy to help.” We are working with the Ministry of
a unique lunar-like feeling. Djibouti Education to create a training centre
is also renowned for its high marine Osman Abdi Mohamed, for workers in the tourism sector. This
biodiversity and the various types of
seabeds that can be found in its waters.
Chief Executive Officer will play a key role in creating qualified
workforce for the sector.”
Tourists and travellers coming to of National Tourism Djibouti, Mohamed says, is an
Djibouti from all over the world are extremely favourable environment for
welcomed with the country’s signature Office of Djibouti people looking to invest in the tourism
openness, warmth and tolerance: “We sector, to whom he pledges ONTD’s
welcome many French people,” says complete support and assistance.
Osman Abdi Mohamed, CEO of ONTD. Besides, he adds, this is the best time to
“France is a very important market for invest in the country, no matter the sector
us, but visitors from other nationalities in order to attract more tourists from of choice: “We have a stable growth rate
are increasing: Chinese, Americans, as Ethiopia.” Moreover, the organisation at 7%. Plus, Djibouti has facilitated the
well as people from Gulf countries and has taken several initiatives to facilitate procedures to be undertaken to create a
our neighbour countries.” To increase the release of visas, launching e-visas business, and a one-stop shop has been
its appeal in broader markets, the and decisively cutting fees and charges: opened. Today, we have an encouraging
organisation is working to provide the price of a three-month stay visa has legislative and fiscal framework which
tailored offers for US and Chinese decreased from US$80 to US$10. has improved and is more attractive.”
visitors as well as reinforcing its These efforts, coupled with the Djibouti’s potential, he says, is there,
presence in the European market. On construction and inauguration of ready to be tapped into.
the other hand, Mohamed adds, ONTD new international quality hotels in
is not going to neglect Djibouti’s closest cooperation with global groups such as
neighbours: “We have a regional tourism Sheraton, Kempinski, ONOMO and many National Tourism Office
of Djibouti (ONTD)
programme,” he explains. “We have others, have earned Djibouti a spot in Tel: (+253) 21 35 28 00
opened our first flight from Addis Ababa Lonely Planet’s Best 10 Destinations www.visitdjibouti.dj
FEBRUARY 2020 • FORBES AFRICA | 19You can also read
