Djibouti | Economy and Infrastructure News

[Ras Siyan]

It was time to create this thread and I'll try to regularly post articles.

Djibouti: A new paradise for banks
(HornTrade) – The number of banks is growing. But BCI-MR still retains 60% market share. After opening in Djibouti in October, a subsidiary of the Warka Bank for Investment and Finance of Iraq, a private bank based in Tanzania is the Exim Bank (Djibouti), while the Central Bank of Djibouti negotiates the arrival of a Russian institution. The banking market seems quite limited and busy to handle such an influx of banks. Thus, the Exim Bank (Djibouti) can not be expected to take large market share. Because even if Tanzania and Djibouti are part of the Common Market for Eastern & Southern Africa (Comesa), the two countries have very little trade between them.

In addition, the installation of these new facilities is not always easy. The Shoura Bank, recently opened in Djibouti, just to start: it is looking for local shareholders and has been a misuse of funds even before its opening. For its part, the Bank of Africa (BOA), which bought Banque Indosuez Red Sea (BIMR), recorded an early leak of clients, including French, to one of two banks owned European Bank for Trade and Industry – Red Sea (BCI-MR, a subsidiary of BRED) and Bank of deposit and credit of Djibouti (CDD). BCI-MR, which claims to hold 60% market share, works much like the State Bank of Djibouti, recovering the management of external funding for government and bank accounts of state corporations.

The new banking law under consideration, bringing the banks’ minimum capital 300 million FDJ (1.2 million €) FDJ 1 billion (€ 3.9 million), may lead to departure, the redemption or bankruptcy of some of these banks.

Source: LOI

Djibouti: SCINET installed in the African port of Djibouti, an assembly of mini-plants in containers

(HornTrade) – Through the agreement with Factoring & Management, SCINET install the new plant near the port’s container terminal in Djibouti is located in a strategic zone between the Red Sea and Gulf of Aden. The plant will assemble mini-plants in the models of basic necessities such as water purification and desalination of water, dry food, egg production, clothing, footwear, steel nail production, tire retreading, Sheeting for Roofing, ceilings and walls, Injected Polypropylene Housewares, Pressed Melamine Items (Glasses, plates, cups, spoons), plastic bags and packaging, dairy products, natural rubber latex products, etc.

Also be joined emergency medical units. These modules are equipped with everything needed to operate autonomously even in places that lack any infrastructure. In addition to addressing medical emergencies, these containers serve specialties such as medical imaging, ophthalmology, dentistry and midwifery. They also include a module with vending machines that provide medical supplies such as serum, syringes, forceps, pharmaceutical material, etc.

Another important feature is the fact that the assembly are connected to the WTS (World Trade System) also managed by SCINET with access to more than 60 million of goods, raw materials, products and services, and the system of automatic operations international trade and trade digital certificates.

The certificates allow exchange transactions automatically using the reciprocal recognition of the value of stocks. In this way, it gives the partners an immediate solution to sell their stocks and obtain raw materials, products and services in real time, globally.

For more information see http://www.scinet-corp.com/
and http://www.scfoundation.eu/

Source: asturi.as

Djibouti: Djibouti banks would like to rate the Ethiopian birr


(Horntrade) – The banking center of Djibouti would like to contribute more substantially to the international trade of Ethiopia. But unlike the Djibouti franc, fully convertible and pegged to the dollar, the Ethiopian birr is highly regulated. Djibouti has a solution.

At the initiative of BICMR (Bank of Industry and Commerce Red Sea), a discussion was opened up recently between the Bank of Djibouti and the Central Bank of Ethiopia in order to remove the obstacles faced by traders in the transfer of cons-dollar values of their holdings in Birr. These barriers are a major hindrance to the development of regional trade.

The idea advanced by BICMR is simple: the banks open accounts in Djibouti birr for their clients and that the Central Bank of Ethiopia opened an account back in Birr to the banking Djibouti. A stabilizing device, via a fund dollars which international institutions could participate as to ensure a daily call auction mechanism for trading in the currency of Ethiopia in Djibouti. “If the proposed scheme goes ahead, the trade will be facilitated in Birr and less expensive,” argues Ould Amar Yahya, CEO of the leading bank in Djibouti.

Naturally, the main obstacle is likely to be political. It will not be easy to convince the Ethiopian authorities to delegate such management of their money. Mr. Yahya is optimistic: “The effects of this accord on the Birr are small. There will be no loss of sovereignty of Ethiopia. “However, this solution would be to him a tremendous stimulus for regional economic cycles in global markets.

Prime Minister Dileita Mohamed Dileita, supports this proposal as it considers register entirely in the interest of the Ethiopian economy as to Djibouti. At the Central Bank of Djibouti, “we know this project, but to date we have not received positive feedback from our Ethiopian counterparts,” said Ahmed Osman, somewhat dubiously.