Djibouti: USD 10 billion in infrastructure projects, focus on Ethiopia
The government of Djibouti recently announced major new infrastructure projects over the next 3 years valued at approximately 10 billion US dollars. Their purpose is to strengthen the country’s role as logistical hub between Eastern Africa and the rest of the world and to satisfy the growing demand for services from landlocked Ethiopia.
Seaport: 6 new terminals are to be built, 4 of which are already under construction. The goal is to lighten the load on the historic Djibouti City seaport managed by Dubai DP World, and the port of Doraleh that opened in 2009, with two terminals dedicated to containers and petroleum products. In addition to boosting these ports, the government of Djibouti is aiming to add road and rail connections with Ethiopia. Ethiopia’s 4-year-old electrical power grid, which led to considerable cost cutting for a Djibouti previously dependent on the use of diesel generators, will also get a boosting. A second line of transport will be built in northern Djibouti to cover the remaining 40% of current needs. A shared Djibouti-Ethiopia industrial area on the border between the two countries has also been proposed.
Djibouti City already has a duty-free port, and another two will be inaugurated in areas not far from the capital: the Jabanas Free Zone and the Damerjog Free Zone – the latter to be partly dedicated to livestock and the first of its kind in the world. Finally, a new airport (Bicidley International Airport and Cargo Village) 20 km from the capital, now in the planning stages, is predicted to cost USD 530 million.
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