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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

Population~1.2 MWorld Bank, 2025
GDP (current USD)$4.6 BWorld Bank, 2025
GDP per Capita$3,906World Bank, 2025
GDP Growth6.50%World Bank, 2025
Inflation (y/y)~-0.31%World Bank, 2025
Unemployment26.02%World Bank, ILO modelled estimate, 2025
Internet Use~65.30%World Bank, 2024
Electrification~62.00%World Bank WDI
CPI Score (Rank)30.0/100 (#130)Transparency Intl
HDI (Rank)0.509 (#171)UNDP HDR

World Bank Indicators Compare with another country

GDP (current USD)$4.6 BWorld Bank, 2025
GDP growth (annual)6.50%World Bank, 2025
GDP per capita (USD)$3,906World Bank, 2025
Population, total1.2 MWorld Bank, 2025
FDI net inflows (USD)$67.8 MWorld Bank, 2024
Inflation (consumer prices)-0.31%World Bank, 2025
Unemployment (% labour force)26.02%World Bank, 2025
Internet use (% of people)65.30%World Bank, 2024
Trade (% of GDP)206.30%World Bank, 2025

Climate Readiness Full ranking

55out of 100
Established
Climate adaptation readiness for Djibouti, from 5 of 5 measured indicators.
Energy access6262.0% · 30% weight
Governance readiness3030 / 100 CPI · 20% weight
Human readiness510.509 HDI · 20% weight
Economic readiness64$3,906, 2025 · 15% weight
Digital readiness6969.0% · 15% weight
This scores climate adaptation readiness (adaptive capacity), following the readiness dimension of the ND-GAIN framework. It is built only from measured values already held on this profile and normalised 0-100. It does not measure emissions or physical climate vulnerability: the platform does not yet hold emissions, hazard-exposure or natural-capital series. Energy access is the single most climate-specific indicator held; the other four are governance, economic, human-development and digital readiness proxies. The economic sub-score is relative to the African countries the platform covers.
How this is computed

Adaptive capacity to absorb climate finance and adapt, following the readiness dimension of the ND-GAIN framework. Built only from measured values already held on each country profile. It is not a measure of emissions or physical climate vulnerability, which the platform does not yet hold.

  • Energy access (30%) World Bank, access to electricity (% of population). The single most climate and energy specific signal held: SDG 7 and the clean-energy transition.
  • Governance readiness (20%) Transparency International, Corruption Perceptions Index (0-100). ND-GAIN governance readiness: the capacity to govern and deploy climate finance. Higher is cleaner.
  • Human readiness (20%) UNDP, Human Development Index (0-1). ND-GAIN social readiness: the adaptive capacity of the population.
  • Economic readiness (15%) World Bank, GDP per capita (current US$), latest measured year. ND-GAIN economic readiness: the capacity to finance adaptation. Scored relative to the covered set.
  • Digital readiness (15%) World Bank, individuals using the Internet (% of population). Information systems for early warning and adaptation.

A country is scored only when at least 4 of the five indicators are held. Sub-scores are weighted and renormalised over the indicators that are present; nothing is estimated for one that is absent.

Country Facts

CapitalDjibouti
RegionEast Africa
CurrencyDjiboutian Franc (DJF)
FX RegimeFixed peg to USD (DJF 177.72 = 1 USD)
Legal SystemMixed: French civil law, Islamic law, customary law
Time ZoneAfrica/Djibouti

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