Djibouti

Republic of Djibouti

French, Arabic Djiboutian Franc (DJF) Mixed: French civil law, Islamic law, customary law
AU, IGAD, Arab League, AfCFTA, OIC, WTO
Djibouti is a strategic port state at the mouth of the Red Sea and Gulf of Aden, one of the world's busiest shipping lanes. The economy is driven by port and logistics services (handling approximately 95% of Ethiopia's trade), military base revenues (hosting French, US, Chinese, Japanese, and Italian military bases), and free zone activities. The Djibouti International Free Trade Zone (DIFTZ), developed with China Merchants Group, is one of Africa's largest. Challenges include a small domestic economy, limited natural resources, water scarcity, and high temperatures. Djibouti's currency is pegged to the US dollar, providing stability for international trade.
Snapshot Focus Sectors Regulations & Taxes Businesses (3) People

Snapshot

Population~1.1 MWorld Bank WDI
GDP (current USD)$4.6 BIMF WEO
GDP per Capita$3,660IMF WEO
GDP Growth5.50%IMF WEO
Inflation (y/y)~1.20%Central Bank / IMF
Internet Use~69.00%World Bank WDI
Electrification~62.00%World Bank WDI
CPI Score (Rank)30.0/100 (#130)Transparency Intl
HDI (Rank)0.509 (#171)UNDP HDR

Focus Sectors

Port & Logistics (Ethiopia's main trade corridor)
Military Bases
Financial Services (Free Zone)
Telecoms
Salt Mining
Fisheries
Tourism
Construction
Energy (geothermal)

Regulations & Taxes

Corporate Income Tax25% standard (Free zone: 0%)
VAT / Sales Tax10% standard

Business Directory (3)

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CA

CAC International Bank

Corporate

Banking Djibouti

DjiboutiCorporate
DJ

Djibouti Telecom

Corporate

Djibouti national telecom

DjiboutiState-owned
IG

IGAD

DFI

Horn of Africa development

Djibouti

Tenders

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Travaux de construction d’un centre multisectoriel de formation professionnelle

World Bank-financed: Djibouti Skills Development for Employment Project

Recrutement d'un bureau d'études pour le renforcement de capacité des formateurs et Formation aux nouvelles technologies de construction (construction bioclimatique) MENFOP

World Bank-financed: Djibouti Affordable Housing Finance Project

Recrutement d'un consultant individuel pour la mise en place de la Validation des Acquis de l’Expérience (VAE).

World Bank-financed: Djibouti Skills Development for Employment Project

RECRUTEMENT D’UN BUREAU D’ETUDE POUR LA REALISATION D’UN INVENTAIRE NATIONAL ET LA CARTOGRAPHIE DES SYSTEMES D’ALIMENTATION EN EAU EN MILIEU RURAL A DJIBOUTI

World Bank-financed: Project Preparation in relation to Horn of Africa - Groundwater for Resilience Project, Phase II

Data Notes: Population, GDP, and GDP per capita are latest IMF WEO / World Bank estimates. Inflation is year-over-year. Trade data from UN Comtrade/OEC (2023). Tax rates from PwC/KPMG country guides. CPI from Transparency International. HDI from UNDP Human Development Report.
Narrative last updated: April 8, 2026.