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.

[Ras Siyan]

(HornTrade) - The national economy in the first quarter of 2010 remains at a level favorable, according to a recent newsletter published by the Ministry of Economy and Finance.

The Bulletin considers promising the field of electricity and water, in the number of subscribers, with the first quarter of 2010, 562 additional subscribers between two successive quarters and 1828 subscribers compared to last year’s same period.

In the water sector, on an interval of three months, the number of subscribers increased from 18 984 to 19 250 subscribers is 266 subscribers by adding (1.4%).

The maritime transport sector, lung of the national economy, is declining for both goods at the entry and exit. Competed in the transfer by the international port of Aden, the port of Djibouti on display three months -20.5% and -30% input to output.

On road transport, the Bulletin notes that observes a growth in activity by 14% quarterly and 15% for the year.

Between Q1 2010 and Q4 2009, at the other offices, there has been a reduction in traffic since every activity is framed in the office PK20 (35%).

Air travel as it is marked by significant counter-performance except in the freight activity.

As for telecommunications, Djibouti-Telecom performs well for the beginning of 2010, including increasing the number of lines of +7.6% over three months and 19.6% for the year and the rising number of Internet subscribers and phone lines, a total of 902 more subscribers.

Regarding the index of consumer prices between February and March 2010, amounted to 140.6 and 141 respectively, an increase of 0.3% and 3.4% over one year .

Regarding the situation of public finances finally Bulletin reports that it is reflected by a larger trend of revenue against expenditure.

The budget, according to this source, recorded revenues rose 109% over one month and 7% over a year thanks largely to non-tax revenue. The expenditure recorded a growth rate of 95.5% over one month because of public investment and external, which are up 252%.

...

[Ras Siyan]

Djibouti’s macroeconomic performance improved significantly, but inflationary pressures are intensifying. Real GDP growth accelerated to 5.3 percent, driven mainly by FDI concentrated in the construction and port services, while the contribution of public services to real GDP declined to 14.5 percent. The share of investment in GDP grew to about 42 percent. This rapid expansion, combined with the surge in food and oil import prices, pushed inflation from 3.5 percent in 2006 to 13.9 percent year-on-year in June 2008. In response, the authorities have eliminated consumption tax rates on five basic food items, and reached agreement with importers and retailers to cap their profit margins on these and other basic items.

The overall fiscal deficit remained at about 2.6 percent of GDP in 2007, even as the basic fiscal deficit (which excludes externally financed revenue and expenditure) narrowed from 7.2 percent in 2006 to 4.9 percent in 2007. Tax revenue declined by about 1 percent of GDP, as a result of tax exemptions granted to new investments and sluggish job creation. This decline was offset by an exceptional collection of overdue taxes. The decline in current expenditure from 30 percent of GDP in 2006 to about 26.5 percent in 2007, was more than compensated by a strong increase (3.7 percent of GDP) in public investment. Government external arrears at end-2006 have been repaid, but new accumulations led to disbursement delays in some loans. External public and publicly guaranteed debt remained at about 60 percent of GDP.

After remaining stagnant for several years, credit to the private sector increased by 23 percent in 2007, owing in part to a real estate and construction boom and increased competition. The arrival of three new foreign banks in 2006–07, increasing the total to five, has fostered competition by reducing spreads and widening the range of financial instruments. Broad money growth slowed down to 9.6 percent due to a lower accumulation of banks’ foreign assets. The capital adequacy ratio remained well above minimum requirements and asset quality improved. Greater confidence in the currency board and in the banking system led to a decrease in dollarization from 52.4 percent of total bank liabilities in 2006 to 51.4 percent in 2007, reducing financial vulnerability.

The deteriorating current account balance reflects mainly a surge in imports financed by foreign investment, but also the increase in food and oil prices. The external current account is estimated to have shifted into a deficit of about 25 percent of GDP in 2007—but this has been more than offset by the large capital and financial account surplus, resulting in a small increase in gross official reserves to US$130 million at end 2007 (equivalent to a currency board cover of 116 percent). The real effective exchange rate has depreciated by a cumulative of 24 percent in 2001–07, relative to its 2000 average, reflecting mainly the weakening of the U.S. dollar. Nevertheless, a variety of indicators, including high domestic production costs, suggest that competitiveness remains weak.

Significant progress has been achieved in the implementation of structural reforms. All key pending structural benchmarks of the 2005 Staff Monitored Program were implemented. In particular, progress was made in the areas of fiscal transparency, civil reform and the legal framework for private sector companies. The quality of monetary and balance of payment statistics is being strengthened with Fund technical assistance, and an assessment of the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) system was conducted by the Fund’s legal department in 2007, in the context of a forthcoming Financial Sector Assessment Program (FSAP).

The short-term outlook for growth is favorable, driven by a solid pipeline of large investment projects. Real GDP would increase by 5.9 percent in 2008. Inflation is expected to be slightly above 8 percent at end-2008, but would decline gradually thereafter as world food and oil prices ease. Revenue and expenditure measures are expected to reduce the overall fiscal deficit to 1.9 percent of GDP in 2008, while the current account deficit is projected to remain at about 33 percent of GDP, as foreign direct investment (FDI)-related imports remain high.

IMF Executive Directors agreed with the thrust of the staff appraisal. They welcomed Djibouti’s strong economic growth driven by large foreign direct investments in the port and other key sectors of the economy. At the same time, Directors noted that the associated increase in inflation has been exacerbated by the surge in food and oil import prices, pointing to the need to contain inflationary pressures as a priority. Ensuring debt sustainability while reducing widespread unemployment and poverty remains a key challenge over the medium term. This will call for strict fiscal discipline and the acceleration of structural reforms to broaden the economic base, enhance productivity, and promote private sector development.

Directors supported the authorities’ economic program aimed at achieving macroeconomic stability, improving competitiveness, and strengthening the external position. They regarded the new Poverty Reduction Strategy (PRS) as a significant step toward addressing key structural bottlenecks. Directors underscored that a successful implementation of the Fund-supported program, which is critical for enhancing the confidence of investors and donors, will require strong program ownership and perseverance. They accordingly called on the authorities to take the necessary actions in this regard.

Directors emphasized the importance of maintaining the fiscal consolidation objective, with a view to controlling inflation and creating fiscal space to finance the poverty reduction strategy. Most Directors considered the fiscal adjustment path appropriate, noting the efforts already taken in, and planned for, 2008, especially those on the revenue front, which would only bear fruit in few years’ time. A few Directors would have preferred a more front-loaded fiscal adjustment path than envisaged under the program, given the limited role of monetary policy under the currency board arrangement, the widening of the current account deficit, and the vulnerability of the budget to external financing conditions. Directors cautioned against reliance on price controls or other restrictions that may hamper the effective functioning of the market. They called for the prompt implementation of a system of targeted subsidies, with World Bank assistance, to alleviate the effects of high food prices on the poor.

Directors welcomed the medium-term objective of reaching a balanced fiscal position. They commended the authorities for the improvements already made in tax administration, and the plan for a comprehensive tax reform, including the introduction of a value added tax (VAT) and the streamlining of tax exemptions. Directors also welcomed the authorities’ commitment to contain current expenditure by improving budget management, intensifying expenditure prioritization, and gradually reducing the wage bill. They called for continued efforts to reform the civil service and enhance fiscal transparency. Directors supported the authorities’ request for Fund technical assistance to strengthen the budget management framework.

Directors stressed that Djibouti’s still high risk of debt distress and vulnerability to a worsening of external borrowing conditions and other external shocks require the authorities’ continued attention. They welcomed the clearance of arrears with multilateral creditors, and encouraged the authorities to negotiate a multilateral agreement with the Paris Club. The upcoming donors’ conference provides a good opportunity to mobilize external financing needed for investment programs on highly concessional terms. Directors welcomed the authorities’ intention to request technical assistance to improve debt management practices to help avoid the accumulation of new arrears.

Directors agreed that the currency board has served Djibouti well, contributing to enhanced confidence and macroeconomic stability. Directors noted the staff’s assessment that the real effective exchange rate appears to be broadly in line with economic fundamentals, and encouraged the authorities to continue their efforts to improve external competitiveness, including by reducing the costs of critical production factors. In particular, Directors saw the need to downsize and improve the management of the two main loss-making public utility companies, and to develop alternative energy sources. They also encouraged the authorities to improve the business climate, including by adopting the new commerce code and enforcing the new labor code.

Directors welcomed the planned introduction of reserve requirements on bank deposits to mop up structural liquidity and help contain inflationary pressures. They stressed the need to reinforce the central bank’s supervision capacities and to update the legal and regulatory framework to keep pace with the rapid expansion of the financial system. The forthcoming FSAP is expected to provide valuable guidance in this regard. Directors also looked forward to the implementation of the recommendations of the recent Report on the Observance of Standards and Codes (ROSC) on AML/CFT issues.

Directors encouraged the authorities to take full advantage of the technical assistance offered by donors to improve the quality of statistics. They stressed, in particular, the importance of completing the population census and the household income and expenditure surveys to help monitor the effects of macroeconomic and poverty reduction policies.

.........

[Ras Siyan]

Ethiopia, Djibouti and Afar Region Railway finally gets Chinese funding

After several years of actively seeking financial support for the development of a crucial transportation network, the Chinese Government has granted Ethiopia a multi-billion birr loan towards the construction of railway lines expected to stretch some 5,000 kilometers from Addis Ababa into the various regions of the Eastern African country.

Although the construction had been planned to commence several years ago, the project had been suspended due to lack of funding. Prior to the Chinese agreement, which was only announced last week, the Ethiopian government had invited a host of international railway companies to bid an engineering procurement contract on several occasions.

According to Hailemariam, government whip at parliament and board chair of the Ethiopian Railway Corporation (ERC), the Indian Government which was also invited to bid took too long to respond to the request. The ERC chair said the government had tried to obtain financing through various methods before the Chinese funding agreement.

Hailemariam Desalegn, has announced the government’s decision to commence the project late this year (2010), adding that priority will be given to railway lines running from Addis Ababa to Djibouti, Addis Ababa to Afar and West to Bedele from the capital.

The Djibouti line is a vital trade route, whilst the country’s major mineral resource areas are in Afar and Bedele, where potash and coal minerals are mined. Transporting these minerals by train, according to Hailemariam, is economically viable. Laying a one kilometer railway line requires an average sum of 40 million birr.

Allana Potash Corporation, a Canada-based company, recently announced that it had started exploration of potash at Denakil Potash Project in Afar region. Bedele is also one of the major sources of coal in the country, according to a study conducted by Coal Phosphate, an office under the Ethiopian Ministry of Trade and Industry.

Ethiopia has been considering the use of coal to help fill the energy supply gap.

Senior Chinese government officials will soon visit the Eastern African country to hold final discussions before the project kicks off.

“This project is one of the main strategic projects of the country within the coming five years”, Hailemariam said.

Source: Afrik.com

..........

Djibouti: Groupe BANK OF AFRICA (BOA) and Crédit Agricole SA today announced the conclusion of an agreement for the acquisition of Banque Indosuez Red Sea (Djibouti) by BANK OF AFRICA

August 1st, 2010
(HornTrade) – The BANK OF AFRICA Group and Credit Agricole SA (“Credit Agricole”) announced today that they conclude an agreement on the acquisition by the BANK OF AFRICA capital of Banque Indosuez Red Sea (“BIMR”), the banking subsidiary of Credit Agricole in Djibouti. BANK OF AFRICA will subsequently enter Proparco and FMO BIMR in the capital.

The completion of this transaction is subject to validation of financial authorities and regulatory authorities and may occur before the end of the fourth quarter of 2010.

For Credit Agricole, the sale is part of the process of refocusing its retail banking International Group on Europe and the Mediterranean Basin, advertised in the capital increase carried out by Credit Agricole in 2008.

For the BANK OF AFRICA, this acquisition fits into the strategy for long-term presence on the African continent and in particular strengthening it in East Africa and the Indian Ocean, where the Group is already BOA implemented in Uganda, Kenya, Burundi, Tanzania and Madagascar.

The Group BANK OF AFRICA was born in 1982 at the initiative of private shareholders Sahara, which for nearly 30 years, gradually building a group of commercial banks now hearing mainland, setting development strategy and implementing it out. Alongside these private shareholders, BANK OF AFRICA also has strong institutional partners such as Proparco, FMO, BIO and IFC, as principal shareholder, since 2008, the Moroccan Foreign Trade Bank (BMCE), with which an alliance strategy has been tied.

With this operation, BANK OF AFRICA, also located in France, is now present in 13 African countries, serving its customers through a network of over 230 agencies.

The Group BANK OF AFRICA today operates in 6 countries in West Africa (Benin, Burkina Faso, Cote d’Ivoire, Mali, Niger and Senegal), 5 countries in East Africa and the Indian Ocean (Burundi, Kenya, Madagascar, Tanzania and Uganda) and the Democratic Republic of Congo, through a network of 12 commercial banks, a housing bank, three leasing companies, a brokerage firm, two companies investment, an asset management company and several other financial companies.

The Group BANK OF AFRICA was born there nearly 30 years in Mali, on 31st December 2009 with total assets exceeding 2.5 billion euros (over U.S. 3.5 billion) and net final more than 34.7 million euros (approximately U.S. $ 49.7 million *).

[Ras Siyan]

Djibouti’s Electricity Utility Djaban As will cost 130 million U.S. dollars

The project Djaban As for the new central power generation as the Djibouti Electricity will soon be built on a site located in PK15 near Djibouti City.

Costing an estimated 130 million U.S. dollars, the site enjoys financial support from Arab donors. These include the Arab Fund for Economic and Social Development (FADES), the Kuwait Arab Fund for Economic Development (KFAED), the Saudi Development Fund (SDF), the Islamic Development Bank (IDB) and OPEC. Thus, the future central Djaban As will have an initial capacity of 75 megawatts that will be expandable to 300 megawatts.

The project is timely. For the current production plant of ESD, based in Boulaos is saturated. Thirty four years after its commissioning, extensions sporadic power

5 Megawatts are no longer possible on site.

Moreover, they are no longer sufficient to meet the growing needs of electric energy to local demand.

African Development Bank already granted 33 million dollars for the electricity interconnection between Djibouti and Ethiopia (Africa News – 10/08/2008).

..................

DJIBOUTI:The Russian giant GAZPROM moved to Djibouti

SomalilandPress)As part of its diversification strategy and deployment of its international business, the Russian gas giant GAZPROM just moved to Djibouti.

The company is a giant Gazprom energy, her everything is superlative: more than 400,000 employees, the largest company in Russia, the third market capitalization, the largest exporter of gas in the world. Gazprom owns the largest pipeline network in the world (155,000 km), and holds positions in banks, insurance, media, construction and agriculture.

In the case of Djibouti, it is Gazprom Neft, a subsidiary of the multinational oil energy that comes from taking up residence at the Djibouti Free Zone, which is a significant step forward for commercial DFZ.

Choosing the location is not accidental: Djibouti Free Zone combines a business-friendly environment, a generous package of tax and non tax incentives, with in it, world class facilities including offices equipped , modern warehouses and plots of land serviced. Access has a network of 6,000 businesses across the Jebel Ali Free Zone (JAFZA), and proximity to regional markets (COMESA) make it a platform conducive to investment and business.

“Our client Gazprom Neft Marine bunkering Ltd. plans to deliver and sell marine fuel through its local subsidiary to be located in Free Zone by the month of May 2010, it is called Djibouti FZCO Bunkering Company,” said Ali Ahmed Aouled , the commercial director of the DFZ.

“The company already has two storage tanks and a barge in the marine oil terminal Doraleh (operated by Horizon Terminal Limited), operate and monitor its activities from a rented office in the DFZ” Has added.

He must also know that the geostrategic position of our country largely explains the arrival Gazprom Neft. Djibouti is located near a dense maritime traffic: merchant ships, freighters, pleasure boats, and of course the fleet of the international coalition in charge of security of merchant shipping against Somali pirates.

Thus the DFZ, in synergy with the port and airport entities, is the main entrance door of foreign investment.

The arrival of this major player in the field of naval replenishment medium term will enhance the quality of service to attract other investment.

Note that these activities are part of the strategy development and openness of our economy.

Source:www.Horntrade.com

[Ras Siyan]

Djibouti: A Desert Economy Fuelled By Anti-Terror Dollars

Djibouti represents a contradiction of cultures that confounds even the most seasoned of travellers.

It is amazing how a devout Muslim population has succeeded in living side by side with the representatives of Western materialism in the form of the US military corps without any conflict. While American marines are derided across the Muslim world as the harbingers of immorality, death and destruction , they are a popular group in this small principality. Djiboutians, an adventurous and hospitable community, learnt long ago how to find a balance between their own interests and the competing political and economic interests in their volatile neighbourhood.

Djibouti is home to thousands of American troops who form the African Command - the Rapid Deployment Force against terrorism - as well as the French Foreign Legion. Every evening , the soldiers leave their barracks to stroll in the dusty town streets where they sample the numerous night clubs set up specifically for their entertainment. These twilight forays start immediately after the Isha prayers when the faithful return to their homes.

Djibouti understands that providing these soldiers with places of entertainment, where they spend millions of dollars or French francs, will help the economy of a country that has no mineral resources or food crops and has to import virtually everything needed for domestic consumption. The relationship is, therefore, naturally beneficial. The moderate government of President Omar Guelleh, whose portrait adorns every square and business premises seems to have convinced his own people about the necessity of this compromise since virtually everyone I talked to exuded extreme confidence in him.

I have not seen that level of patriotism in other countries but maybe it arises from the economic boom that the small state is experiencing. One of the cornerstones of the boom is the port of Djibouti, which is so strategically placed that it has developed a hinterland market that makes it one of busiest ports in Africa per capita. The boom was fuelled by two factors .

First, when Ethiopia and Eritrea's hostilities led to war, Eritrea closed the ports of Massawa and Assab, which Ethiopia had always used, leaving the latter landlocked. This meant it had to find a route to the ocean for exports like coffee, livestock and flowers and for imports to fuel the large country's economy. The Port of Djibouti operations today are dominated by Ethiopia's imports and exports, which comprise over 90 per cent of the total throughput. Despite its numerous fronts of conflict from Eritrea to Mogadishu and Oromo, Ethiopia is undergoing an economic boom sustained by the easy flow of goods through Djibouti.

Secondly, to handle the vast amounts of cargo passing through the port of Djibouti destined for and from Ethiopia, the government privatised the port which is now managed by an international player - DP World - which has modernised its operations to match those of other countries in the region. Today, Djibouti has built one of the biggest oil storage and handling complexes in Africa at Doraleh a few kilometres out of the town, which can handle over 300,000 tonnes of oil (fuel and vegetable ) as well as liquefied gas for use by the two military forces and Ethiopia.

The harsh heat of Djibouti determines the daily pace of life. During the hot season, many offices open at 6 am and close business at 1pm. This arrangements plays havoc with visitors used to the normal Western schedules. Like other towns that hinge their fortunes on wealthy foreigners, Djibouti is an expensive town . During my first visit to the town with temperatures running at 49 degrees Celsius in the shade, I thought the town was empty until evening when I realised that all those drab buildings are actually places of fun and vigorous commerce and open in the evenings when the heat subsides.

Outdoor kitchens and souks are set up in the street corners where thousands of people in gaily coloured robes and gowns venture to buy snacks after an afternoon of chewing qat. A simple meal like Shawarme ( a meat or chicken sandwich) fetches the equivalent of $6 to $7. However, Djiboutians practise their faith seriously and most of them get their intoxication from qat (miraa). "Qat is good and unlike drugs or alcohol it gives us peace," said a local resident. "Even if you have quarrelled with someone in the morning, if you chew and meet him in the evening, the anger is over."
'
Now I can understand the image of an armed policeman chewing qat and holding his tasbih (prayer meditation beads) in the other hand quite oblivious of the world. The crime rate in Djibouti is extremely low and many use this as vindication of their way of life. Islam and the laid back desert life might claim credit for peace in the country, but watchers are questioning how long it can last with the Western influence eroding the moral fabric of the society. Djibouti lies at the crossroads of a volatile and at times violent region where terrorism occasionally rears its ugly head .

Across the Red Sea lies Yemen, to the north is Asmara now emerging as the capital of Somali fundamentalism while to the south is Mogadishu.

Share & Bookmark
Source: The East African (Kenya), by Njuguna Mutonya

Kinda off topic but nice..

[Yoniii]

Very interesting.

[Ras Siyan]

Originally Posted by Yoniii

Very interesting.

Indeed.

Djibouti: Djibouti Telecom teams up with Telecom Italia Sparkle for IP POP



HornTrade) – Fixed line operator Djibouti Telecom and Telecom Italia Sparkle, the international wholesale arm of Telecom Italia, yesterday announced their top-tier IP Point of Presence (POP) is now available in the capital, Djibouti City. The new POP has been established for the development of IP services in East and South Africa. The pair hope to use the new link to provide cost effective, high quality and secure global IP connectivity to TLC operators, ISPs and service providers that are connected to Djibouti through existing and upcoming cable systems such as SMW3, EASSy, Seacom, EIG, and other bilateral infrastructure. Commenting on the launch of the IP POP, Djibouti Telecom managing director M Abdourahman Mohamed Hassan said: ‘With the deployment of a new generation of submarine cable systems in East Africa, the IP node/exchange will play a significant role in the region by offering reliable and robust solution[s] to support the increasing demand for international service from Eastern and Southern Africa.’

Source: telegeography.com

World Bank Boosts Support for Poverty Reduction and Power Access in Djibouti

(HornTrade) - Efforts by the Government of Djibouti to accelerate poverty reduction in the poorest areas of its capital and to expand access to electricity for poor people received further support from the World Bank on July 28 with additional grant financing of $8.9 million.
“The Republic of Djibouti and the World Bank signed additional financing agreements for the Power Access and Diversification Project (US$6.00 million) and Djibouti’s Urban Poverty Reduction Project (US$ 2.9 million). Ambassador Robleh Olhaye Oudine, representing the Government of Djibouti, and Shamshad Akhtar, the World Bank Vice President for the Middle East and North Africa Region, officiated,” World Bank said.

Additional financing for the Power Access and Diversification Project, first approved in November 2005, will supplement the original support by $6 million bringing the total credit and grant mix from the International Development Association, IDA, the Bank’s concessional lending window, to $13.30 million.

“The additional grant will help Djibouti deepen its efforts to expand access to electricity for low-income citizens,” said Akhtar. “It should also help improve the efficiency of the power utility by supporting investments in metering and distribution line rehabilitation. Today’s signing reinforces years of active cooperation and dialogue with Djibouti’s authorities as they seek to develop new sources of electricity supply including geothermal energy.”

The Urban Poverty Reduction Project is designed to address poverty in Quartier 7, the largest and one of the poorest neighborhoods of the capital city. Along with projects financed by the African Development Bank (AfDB), the Islamic Development Bank (IsDB), and the French Development Agency (AFD), this IDA-financed urban sector operation is one of the key constituents of the country’s urban poverty reduction program. The additional grant financing of $2.9 million will support the Djibouti Social Development Agency (ADDS) in expanding its activities to scale up the project’s impact and relevance for poor citizens of Quartier 7.

Works to be financed will improve the quality of life for five thousand households in Quartier 7 with rehabilitated roads, literacy and vocational training for young people and women, improved sanitation and solid waste collection. Social infrastructure funded by the project includes a community development center, a health center and three recreational spaces in the area

[Ras Siyan]

COMESA Yellow Card: A Reliable System of Insurance


(HornTrade) – Founded in 1986, the COMESA Yellow Card is a regional system of auto insurance covering all member countries. The insurance risk is still relevant. Both the strategic importance of cross-border transport and the volume of heavy truck movements pose the challenge of balancing the flow and safety of traffic on the international corridor.

Border trade occupies an increasingly prominent place in the national economy. For the port of Djibouti became the natural outlet of Ethiopia in recent years. Result: transit operations are a large component of port operations in the country. Transit Ethiopia amounted to 77.4% of traffic from the port of Djibouti in 2009. And the movements of Ethiopian trucks totaled 206,842 trips during the past year.

These factors reflect fairly the density of traffic on both sides of the border and Galafi Guelileh. The finding raises the challenge of balancing security and fluidity of movement of persons and goods on the international corridor. Hence the need for motorists and hauliers to join the regional network of the COMESA Yellow Card which provides coverage in case of accidents.

It is also necessary that each national bureau of this regional system of auto insurance has a dual function. It plays the role of provider of yellow cards to motorists traveling in another country member of COMESA. The entity also performs settlements injury and damage that accidents of vehicles in transit could potentially cause.

Production of yellow cards … office Djibouti
The office of Djibouti yellow cards issued to motorists traveling from Djibouti to Ethiopia. Its turnover amounted to 23.7 million in 2009 FD for 479 cards issued. It is also important to remember that the production office of the yellow card in Djibouti over the past seven years has continually climbing after 2008.

Apart from the decline in 2008, emissions of yellow cards have recovered as in previous years with an increase of 15.6% premium and 2.8% of cards sold. The fleet has ensured increased slightly by 5.3% and consists mostly of passenger vehicles up to 56%. The heavy traffic of vehicles Ethiopian produces injuries that the Office of Djibouti’s mission is to manage and resolve on behalf of the Office of Ethiopia.

During the year 2009, it was recorded 206,842 vehicle movements in Ethiopia. Note also that in 2009 the number of vehicle accidents reported to the office and Ethiopian yellow card of Djibouti rose to 106 up 3, 9% over 2008. Optimism prevails among professionals with regard to the settlement of these claims during the same period.

Indeed, the Office of the yellow card of Djibouti from 2003 to 2009 settled nearly 274 claims. It has paid as such, the total sum of 214,639 308FD victims of accidents caused by vehicles Ethiopia. The burden of vehicles Ethiopian claims amounted to 51.1 million FD in 2009, an increase of 0.7% compared to the regulations of 2008.

At the end of fiscal 2009, claims awaiting payment were valued at 360.5 million FD. The figure shows the extent of claims and liabilities outstanding issues related to road accidents caused by the carriers involved in transit operations. Still, the COMESA Yellow Card insurance system remains a reliable.

Djibouti Container Terminal Doraleh(DCT): Horn of Africa, a new service for Maersk Line

(HornTrade) – Beginning at the Port of Tanjung Pelepas Malaysia and making a maiden voyage to commemorate the opening of a new service called “Horn of Africa (Horn of Africa), Maersk Line, the container ship Maersk docked Tuesday at the Container Terminal Doraleh.

From the port of Jebel Ali in Dubai, the behemoth has unloaded some 328 containers at Container Terminal at the Port of Djibouti, to pick up remaining 305 before weighing anchor on the same day for Jeddah in Saudi Arabia.

This new service Maersk Line is a weekly regular service that runs from Tanjung Pelepas (Malaysia) to ports on the Red Sea, through the Persian Gulf: Jebel Ali (Dubai), Djibouti, Jeddah (Saudi Arabia) Port Sudan, Djibouti and then a second time and Tanjung Pelepas finally.

Indeed, this same trip by today as part of its maiden voyage on Maersk Batur, a ship along 223.30 m and a capacity of 3,078 TEUs (Twenty Foot Equivalent).

Panamanian flag, this colossus was built in December 2009. The new service Horn of Africa allows Maersk Line, officials said port of Djibouti to establish a direct connection between the Far East or Southeast Asia, the Persian Gulf and Red Sea ports, including Djibouti in the first place.

This leads, in their view, a significant reduction in transit time for the benefit of traffic and import-export in the region. To mark the occasion, the Chairman of the Authority for Ports and Free Zones, Mr. Aden Ahmed Doualeh, handed the captain of the vessel Maersk Subhash Anchan Batur a plaque as a welcome for this first stop in the Container Terminal Port Doraleh symbolizing the official opening of department Horn of Africa line Maersk SA.

The ceremony took place in the cockpit of the container, in the presence of Captain Clarence Rodriguez, director of the Container Terminal Doraleh (DCT, its English acronym), and Mr. Ali Hassan Warsama, Commercial Director DCT.

............

[Ras Siyan]

KOICA (Korea) to Bring Solar Power to Developing Nations

(HornTrade) – Korea International Cooperation Agency (KOICA) has begun its assistance of solar photovoltaic (PV) projects in the developing nations of Mongolia, Bangladesh, Ethiopia and Djibouti.
The official in KOICA’s climate change division revealed in late June that Daegu City Gas, Daesung Global Network, Green Asia, Dongshin Engineering & Consultants had concluded two-year contracts with Bangladesh, Ethiopia, Mongolia and Djibouti. “The PV project will take off from Ethiopia and Mongolia by the second half of this year at the earliest and proceed gradually to other countries.”
Meanwhile KOICA also settled a contract between LG CNS and Sri Lanka for the construction of a solar PV power plant in May.
LG CNS’s project in Sri Lanka is President Lee Myung-bak’s first step to implement his “East Asia Climate Partnership” declared at the G-8 summit meeting in 2008. The plan is to assist the developing nations to cope with climate change. Bangladesh suffers from a general lack of power supply, even in Dhaka, its capital city.
The Korean government decided to provide USD 2.5 million for the next two years to install 1,250 solar PV lamps (5,060kW each) and another 20 PV-irrigation pump (5kW) to help improve the quality of life and production of agricultural goods in the country.
Another 3 million dollars will be invested in Ethiopia over two years starting this August to establish a storage battery recharge system, pump with water distribution, street lamps and other facilities in the regions where KOICA has already established an elementary school and a family planning center.
“This way people in developing nations will get a better grasp of the concept of sustainable clean energy and that’s where the significance of this project lies,” said a KOICA spokesperson. “The project also coincides with government policy and secures a basis for Korean companies to advance abroad.”

Source : koreaittimes.com

Port of Djibouti maintains its progress according to the latest Economic Bulletin (IBE)


July 10th, 2010
(HornTrade) – The last newsletter published quarterly by the Economic Department under the Ministry of Finance reports that the International Port of Djibouti, contrary to popular belief, has maintained his progress over the years.

According to IBE, the port has performed well with growth of 25.33% as incoming.

The port reported as 10,101,128 tons landed in 2009 against 8,059,273 tonnes in 2008.

The dry cargo imports totaled 7,831, 854 tons in 2009, representing an annual increase of 35.63%.

Nearly 90% of dry goods imported are intended for Ethiopia, they would have increased by 57.22% in 2009 (37% for steel work and 48% for industrial products).

Imports of Somalia have taken it on in 2009 with annual increases of over 77%.

As for imports in Djibouti, they marked a decline of 36.32% compared to 2008, but remain at a level better than previous years, according to the Bulletin.

Regarding the transhipment traffic, the source document notes that suffers a decline of 40% compared to 2008, from $ 369,996 to 221,639 tons in 2009.

The Bulletin explains the decline by the disruption caused by the problem of piracy and competition from the port of Aden earlier this year.

Regarding oil imports, which reflects a slight decrease of 0, 68% in stabilizing at 2,269,274 tons.

This decrease was due to the reduction (30.23%) Ethiopian imports, despite Djibouti imports have increased sharply in 2009.

Indeed, oil imports in Djibouti following the development of the country’s economic activities marking an increase of 90.5%.

With a volume of 1,180,062 tons, the export traffic shrank by 7.17% compared to the volume shipped in 2008.

Despite a decent performance overall during the year 2009 exports of Djibouti and those related to transfer that have experienced increases of 2.16% and 2.28%, Ethiopian exports dropped 17.21%

Stratex: Gold opportunities in Ethiopia and Djibouti in the Horn of Africa


July 9th, 2010
(HornTrade) – Gold and base metals play Stratex International awaits potentially encouraging drilling results from Turkey and sees possibly much larger rewards in Ethiopia.

Steered by chief executive officer Bob Foster, Stratex, which expects its first production from Turkey in late 2011, has also positioned itself to exploit what it argues are long-neglected gold opportunities in Ethiopia and Djibouti in the Horn of Africa, a region now attracting growing mining interest. Chip samples from one prospect, Magenta, have shown low-grade intersections of 0.1 to 0.5 grammes of gold per tonne of ore, though one 0.6 metre sample shows 16.75 grammes a tonne.

Foster argues that the geology suggests the potential for ‘bonanza’ grades below the near-surface deposits. Stratex is involved in several other Ethiopian projects, including one at Tigray, and can earn 60 per cent of the promising Shehagne project by spending £350,000.

Foster also hints that several major mining companies are ’sniffing round’ this region. At 3.3p, down from the 2006 float price of 5p, Stratex shares offer speculative potential.

Source: Growth Company Investor

...........

[Ras Siyan]

Djibouti one of the countries which has the more indirect taxes

July 9th, 2010
(HornTrade) – The African Economic Outlook report, officially launched in Addis Ababa, the Ethiopian capital, Monday, showed countries without minerals and oil were more effective in tax collection.

However, the expansion of the tax systems remains subjects to changes in the international markets such as the recent economic downturn.

‘In these countries, it is the more politically demanding types of taxes – personal and corporate income taxes together with value-added Tax – that have been driving the slow increase in tax shares,’ the report said.

It says although oil-producing countries collect more tax revenue, non-oil producers lead in better quality sources of taxes.

Libya, a leading producer of crude oil, abandoned other sources of tax after earnings from oil exports shot up to 70 percent of the country’s overall wealth in 2007 due to high oil prices.

Countries with higher earnings from oil and other minerals, have mostly abandoned tax revenues and resorted to the tax revenues from crude oil exports.

Algeria, Angola, Botswana, Congo, Chad, Equatorial Guinea, Gabon, Libya and Nigeria fall in the category of countries with lax tax laws.

Burkina Faso, Burundi, Djibouti, Kenya, Lesotho, Mauritania, Morocco, Mozambique, Rwanda, Senegal, South Africa and Zambia, are amongst the countries which have more indirect taxes.

These are taxes based on consumption of certain consumer goods collected for the government by the various companies. These include VAT, sales taxes and excise duties.

These consumer taxes target cigarettes, alcoholic drinks and airtime sales taxes, which are collected by companies and paid directly to the government.

The UN report states the difficulties faced by the countries with no oil wealth include the lack of ability to increase the tax base, mainly to reach the companies not officially covered under the formal tax system.

The report cites complex tax evasion schemes, the difficulties that some oil producing countries face to determine the exact amount of volumes of crude extracted to base the taxes and the over-use of certain taxation measures by the various governments as weaknesses that need correction.

Ethiopia, Djibouti Customs to Share Port Database

July 9th, 2010
(HornTrade) – Revenue and Customs Authority of Ethiopia (RCuA) is going interface its database with Djibouti Customs Office, reports Capital. This is meant to better manage and control incoming and outgoing goods of the country, according to the news report.

The authority negotiated with their counterpart of Djibouti and reached an agreement to interface their database to supply detailed information about incoming and outgoing goods in Ethiopia, according to sources at the authority.

According to its performance report, presented to the parliament this month, the authority seized incoming contraband goods worth 1.13 billion birr within the last nine months of this fiscal year. It also controlled and stopped goods worth 200 million birr while illegally leaving the country.

The authority obtained 300 million birr from the goods seized through manual inspections and through law enforcement operations, according to the report.

The current labor-intensive operation of controlling contraband goods and imports would be eased when the preparation to interface the databases is completed according to the official.

Source: Capital

Djibouti, IMF strengthening policies to deal with economic challenges

June 23rd, 2010
(HornTrade) – A mission from the International Monetary Fund (IMF) visited Djibouti from June 2-9, 2010 to discuss progress under the Extended Credit Facility (ECF), which replaced the Poverty Reduction and Growth Facility (PRGF) approved in September 2008. Mr. Carlo Sdralevich, IMF Mission Chief for Djibouti, issued the following statement today:

“The Fund mission had constructive discussions with the Djibouti authorities focusing on the economic challenges faced by the country in the context of the difficult security situation and large social needs of the population, most notably in relation to food security. Due in part to the government’s response to these challenges, spending overruns pushed the 2009 budget deficit to 4.9 percent of Gross Domestic Product (GDP), compared with a program target of 1.8 percent of GDP. And while tax revenues have increased, also thanks to the successful introduction of the value added tax (VAT) in 2009, external support has fallen short of expectations. These financing pressures have forced the government to accumulate domestic arrears to the public utilities companies amounting to about 1.4 percent of GDP. The deviation from the 2009 program targets resulting from this weak fiscal performance has held up the completion of the second and third reviews of the ECF.

“In this context, we have worked with the authorities to strengthen policies to help Djibouti deal with its economic challenges, and allow the program to move forward. To this end, we agreed that Djibouti would establish a track-record during the period April-September 2010. During this period, the authorities will focus on two main issues. First, the government is committed to improve the fiscal balance in 2010 compared to 2009, to ensure that government expenditures are properly financed and social spending is protected. Additionally, the government will implement structural measures to strengthen fiscal expenditure planning and control through better cash management and coordination of the Ministry of Finance with line ministries. The slippage in 2009 has also underlined that further reform of public financial management, and in particular of the budgetary process, will be needed over the medium term.

“Good performance through end-September 2010 on these fronts would pave the way for completion of the second and third reviews by the end of the year. In this regard, policy implementation in the first months of 2010 is encouraging, as end-March performance in the fiscal and monetary areas was satisfactory. Progress was also made on structural reforms, particularly in the financial sector (with the strengthening of the supervisory capacity of the Central Bank of Djibouti), statistics (with the publication of the population census), and the energy sector (with progress made on the interconnection with the Ethiopian network and the preparation of a report to reorganize the electricity company).

“The authorities and IMF staff agreed that economic growth in 2010 will likely slow marginally from 2009 due to a downward revision of foreign direct investment levels but will remain strong on the back of port activity. For 2011, growth should improve as foreign direct investments rebound. Inflation will likely remain low despite rising international prices. However, poverty continues to remain a challenge.

“The IMF team is looking forward to continue its collaboration with the Djiboutian authorities to help the country reach its goals of sustained growth and poverty reduction.”

................

[Ras Siyan]

Stratex expanded its activities in the Ethiopia-Djibouti border

June 9th, 2010
(HornTrade) – Gold and base metals explorer Stratex International has expanded its activities into Djibouti with the award of six new licences covering 535 sq km.

They brings the company’s total land package in the Afar Depression to 2,780 sq km, straddling the border of Ethiopia and Djibouti.

Chairman David Hall said, ‘Having explored for epithermal gold in South America and elsewhere for many years, I believe the Afar Depression represents an exciting new epithermal gold province.

‘Importantly, we have an early-mover advantage in the region, and we have used this to stake a large ground position which straddles the border between eastern Ethiopia and Djibouti.

‘Given the company’s healthy cash position, coupled with the support we have received from the governments in both Ethiopia and Djibouti, we are ideally positioned to rapidly advance our development programme in the Afar region and define the economic potential of our land position.’

Source: bfnnews.com

.............

[Ras Siyan]

Djibouti to install thermal generators for 75 MW

May 18th, 2010
Djibouti has received a $30 million loan, part of the money it needs to put up a 75 megawatt thermal electricity plant, the head of its power utility told Reuters.

It is waiting for another $100 million but had agreements with the Kuwait Fund and Saudi Fund for $30 million each, and the Islamic Development Bank and OPEC would provide another $40 million each.

“With the signing in January 2010 of the agreement with the Arab Fund for Development for 25 percent of total project costs of $130 million for a new power plant, we made a giant step,” said Djama Ali Guelleh, general manager at Djibouti Electricity.

“This loan of $30 million will be repayable over 25 years with an interest rate of 2-5 percent.”

The new power plant will be situated at Djaban Haas, 15 km (9 miles) south of the capital and will have an initial capacity of 75 megawatts, which can be later expanded to 300 MW, he said.

Guelleh said Djibouti had purchased five generators with capacity of 15 MW each, and an interconnection project with neighbouring Ethiopia was on track.

“The poles are up and the power cables are running the 85 km to the Ethiopian border,” he said.

Djibouti has been relying on the 80 MW Boulaos power plant built in 1976, but everyone agreed it was uneconomical to expand it, Guelleh said.

Another official said the Djibouti government also had plans to develop its wind potential in the medium term.

A government study in 2002 established that Goubet, at the entrance of the Gulf of Tadjourah, had potential for 50 MW.

Idriss Hared, renewable energy specialist at the Djibouti Research Centre, said the government was looking for financing for a wind farm at Goubet and discussions were going on with the French Development Agency and Alsthom.

The tiny Horn of Africa country also aspires to tap its geothermal resources.

In 2008, a preliminary geophysic study by an Iceland company showed that there were good prospects.

“The total project cost is $170 million and will be financed by the World Bank, European Investment Bank and Iceland,” said Abdou Houmed, an EDD geothermal resources engineer.

Prospecting for geothermal began in 1970, seven years before the independence, and six exploratory boreholes were drilled between 1973 and 1983 at Hanle, 137 km at the South of Djibouti, and in Assal Lake, 122 km north.

Each time the result was positive but the high salinity was an main obstacle, he said.

Another four wells were sunk in Assal in 1987 for $16 million but here too the main issue was salinity, he said.

The government had mobilised $27 million for the feasibility studies from the Arab Fund, Kuwait Fund, and Iceland’s Reykjavik Energy.

“With financial crisis in Iceland, I can’t say when the program will be restart, but the last contact with our partners left me optimistic,” Houmed said.

Edited by: Reuters

.................

[Ras Siyan]

Djibouti Generates Grain on 3,000ht of Ethiopian Farmland

November 23, 2009
The government of Djibouti is harvesting 60,000ql of wheat from its farm in Western Arsi around Serofta, in the Oromia Regional State. The tiny nation, which is Ethiopia’s gateway to the sea, had been granted 3,000ht of prime land in June 2009, where it started growing wheat immediately. This land used to be part of the Bale Agricultural Development Enterprise, a state enterprise supervised by the Privatisation and Public Enterprises Supervisory Agency (PPESA).

The land given to Djibouti, free of any payment, was transferred from the enterprise by the order of the PPESA in June 2009. It was in keeping with a promise the government made during a visit of President Ismail Omar Guelleh of Djibouti and his wife to Ethiopia in July 2008, which included a meeting with Prime Minister Meles Zenawi.

The farm is named Serofta Modern Farm of the Republic of Djibouti, after the area in Western Arsi where it is found. The state enterprise which gave some of its land to Djibouti was known for growing wheat and barley on 30,000ht of land since the time of the military regime.

Since the fall of that regime in 1991, the enterprise’s land has been doled out to investors and farmers. Now it is left with less than 10,000ht.

Aden Omer, general manager of the farm, says that the 3,000ht given to Djibouti was the best piece of the land it had.

“The land gives 20 to 30ql per hectare, depending on the weather,” he said. Aden said that 21ql of wheat was expected to be harvested from the 2,828ht on which they planted wheat.

“Before the end of this month we will transport 20,000ql to Djibouti,” he said. “This is a very good thing for us. It makes our friendship with Ethiopia stronger.”

“Once this land has been privatised, we should follow up with the developments there. But I do not have any new information now,” said Deribu Jemal, head of the Oromia Land Development, Administration and Environmental Protection Bureau.

Djibouti has a surface area of 23,180 square kilometres and a population of over 500,000. A 2005 report of the World Food Programme (WFP) indicated that 30,000 people faced the risk of hunger in the small, Horn of Africa nation.

..............

[Ras Siyan]

DJIBOUTI

Earth Heat Resources Ltd

La société australienne dirigée par Raymond Shaw et Torey Marshall, Earth Heat Resources Ltd (EHR, anciennement Fall River Resources), va développer un projet de géothermie à Djibouti dans la région du lac Assal. Pour ce Fiale Geothermal Development Project, elle vient de signer un accord de joint-venture avec le ministère djiboutien de l'énergie et la compagnie étatique Electricité de Djibouti (EDD). Il prévoit la génération de 150 MW selon un plan en trois temps dont la première étape consistera à mettre en place une centrale géothermique de 50 MW. Evidemment, l'EDD se porterait acquéreur de l'énergie qui serait ainsi produite. Mais on n'en est pas encore là. EHR doit d'abord effectuer des forages afin de déterminer le meilleur emplacement pour sa centrale géothermique et surtout réunir les gros moyens financiers nécessaires à la concrétisation du projet. Cela devrait prendre du temps !

La Géothermie, ils en parlent pendant 20 ans, et rien n'est fait à ce jour!

DJIBOUTI

Nael Cement & Products Factory

L'augmentation des besoins en ciment à Djibouti attire de nouveaux intervenants dans ce secteur. Outre les projets de construction de cimenterie déjà connus, le groupe Nael General Contracting des Emirats arabes unis s'est mis à son tour sur le coup. Il vient de créer une filiale à Djibouti sous le nom Nael Cement & Products Factory dont le gérant sera Oommen Varughese, un ingénieur qui collabore depuis une décennie avec le fondateur de ce groupe, Nael Rashid Said Al Shamsi. La filiale djiboutienne devrait importer les produits du groupe fabriqués aux Emirats arabes unis.

Superbe, plus de cimenteries, le pays en plein boom coté construction. J'espère que nous n'aurons plus besoin d'importer et serons peut etre des exportateurs de ciments dans la région. L'article ne mentione pas ou sera construit cette future usine.

DJIBOUTI

Gros boom sur les supermarchés

Un haut dignitaire djiboutien promeut un projet de construction d'un supermarché Carrefour qui pourrait venir concurrencer l'installation d'un Casino prévue en 2011.

C'est sur un terrain appartenant au gouverneur de la Banque centrale de Djibouti, Djama Mahamoud Haïd, beau-frère du président Ismaïl Omar Guelleh, que pourrait être installé, à Djibouti, le premier supermarché de l'enseigne Carrefour. Ce projet est également porté par Abdoulkarim Hassan Doualeh, le patron de la supérette d'Einguela, dont la sœur est l'épouse du gouverneur de la banque centrale. Le terrain envisagé pour construire ce supermarché se trouve sur une zone qui appartenait à l'armée djiboutienne avant d'être vendue au Somali Business Investment Council. Djama Haïd ayant aidé à conclure cette transaction, il a pu récupérer un morceau de ce terrain pour son propre compte.

Les promoteurs du projet de supermarché Carrefour avaient initialement dans l'idée de prendre pour partenaire le groupe Coubèche, dirigé par la fille de son fondateur, Magda Rémon Coubèche. Mais cette alliance ne s’est pas concrétisée, car celui-ci possède déjà une supérette sous enseigne Casino depuis deux ans et envisage de construire un supermarché Casino en 2011. Pas sûr toutefois qu'il y ait une clientèle suffisante pour deux supermarchés à Djibouti !

Il était temps pour ces supermarchés de venir s'installer à Djibouti.

[The Nomadic Warrior]

DJIBOUTI (Reuters) - Djibouti's economy is expected to grow by 4.5 percent in 2010, versus an estimated 5 percent last year, and inflation remains a challenge, the International Monetary Fund said.

Djibouti, a former French colony which separates Eritrea from Somalia, hosts France's largest military base in Africa and a major U.S. base. Its port is used by foreign navies patrolling busy shipping lanes off the coast of Somalia to fight piracy.

"Economic growth remained strong and should be around 4.5 percent in 2010 and promote the good conduct of fiscal and external accounts," the IMF said.

"Rental of military bases to strategic partners, the transit trade with Ethiopia and the dynamism of the port activity and sustained flows of foreign direct investment ... has allowed the Djiboutian economy to mitigate the effects of the world economic and financial crisis."

IMF said inflation arising from high food and fuel prices was still a challenge. "Inflationary pressures on the international food and energy markets will weigh on the index of consumer prices in Djibouti."

http://af.reuters.com/article/invest...6AD0AI20101114

[Xusein]

A bit lower than the average of 6% it's had in recent years.

I wonder why, especially since many nearby countries are recovering.

[popa1980]

4.5% is not good.

[Ras Siyan]

I was expecting better, 4.5% is not much!

Xusein would you please move this to the Djibouti Economic and Infrastructure thread? Mahadsanid!

[Ras Siyan]

Djibouti port drives national growth

© afrol News / Djibouti govt

afrol News, 16 November - Djibouti is attracting investments at a great scale, but economic growth remains slower than in the region, new data show. A boom in Ethiopian trade and use of the Djibouti port however secures sustainable growth.

The latest analysis of the Djiboutian economy, published today by the International Monetary Fund (IMF), shows a diverse picture: While Djibouti is successful attracting foreign investments and lucky to draw on the boom in neighbouring Ethiopia, economic growth in the small Horn country just will not take off.

For years, data revealed by the Djibouti Finance Ministry and the IMF, the country has experienced a lower GDP growth than sub-Saharan Africa at large and neighbouring Ethiopia in particular.

GDP growth the last five years has typically been around 5 percent annually. Taking Djibouti's population growth into consideration, this has made room for an annual GDP per capita growth of 2.5 percent each year in the same period. Social gains are therefore made, but the growth is too slow to meet poverty-fighting targets, according to the IMF.

As such, Djibouti did not feel the global financial crisis, with GDP growth in 2009 remaining stable at 5.1 percent and GDP per capita growth registered at 2.5 percent.

Economic growth is also "expected to reach about 4.5 percent in 2010," according to IMF analyst Carlo Sdralevich. The Fund however foresees a stronger growth from 2012 to 2014, which could reach 7 percent.

While GDP growth in Djibouti has been lower than in Ethiopia and sub-Saharan Africa (SSA), investments in Djibouti have been higher

"The lease of military bases to strategic partners, the transit trade with Ethiopia, a booming port, and sustained flows of foreign direct investment have enabled Djibouti's economy to mitigate the effects of the global economic and financial crisis," according to Mr Sdralevich.

Foreign investments during the last years in particular have flowed into projects in mining, construction and energy. Also, recent investments in the Djibouti port trans-shipment business are starting to pay off.

The Djibouti port, the leading in the African Horn region, indeed remains a main motor in the Djiboutian economy. The port sees a steadily increased traffic as its main hinterland, Ethiopia, lives through a substantial economic boom. Trade volumes and values are increasing from year to year, and the IMF foresees the Ethiopian economy to keep on expanding rapidly.

Despite Djibouti's steady GDP growth, also in terms of GDP per capita, most Djiboutians however have not been able to improve their economic situation. Inflation has been growing, in particular food and energy prices, hitting the poor majority hard. The IMF talks about a "food and oil price shock on the population." Djibouti already has the second highest electricity tariffs in Africa, after Chad.

Government's social spending also has declined, according to the IMF. This came as a consequence of a need to cut spending in general and the government wage bill in particular.

..........

We really need to diversify the economy, we can't expect the port to be the engine of our economy forever! Other sectors such as finance, tourism, manufacturing have to be explored.