University of Djibouti. How to reduce the unemployment and the poverty in Djibouti: Another alternative. Mohamed Elmi Mohamed_elmi_abdillahi@univ.edu.dj University of Djibouti. 1

Plan I. Introduction. II. Knowing and classifying the unemployment persons in Djibouti. III. The limit of current policies. IV. Our methodology or alternative method for fighting the unemployment and the poverty. V. Results of our methodology. 2

I. Introduction The Republic of Djibouti is a small country of oriental Africa and independent since the Jun 27 1977. The Djiboutian people are estimated at 800, 000(eight hundred thousand) inhabitants. The Republic of Djibouti annual growth rate is about 7.4%. 50% of residents are unemployed 70 % of the population are living below poverty line. We propose reducing the unemployment and poverty rate by developing the service and manufacturing industries and also restructuring the informal job market in Djibouti. In our paper, we will also discuss how to develop the Small and Medium Enterprises in Djbouti. 3

II. Knowing and classifying the unemployment persons in Djibouti. The unemployment figures are 317, 800 with 109, 032 women and 208, 848 are men. In This work, we produce the complete and informative statistics of all unemployed persons useful for policy makers. We group the unemployed Djbouti residents according to their Age, Education, Gender, & Training Such classification allows targetted strategies to help the unemployed residents based on their profile. Targetted training an be given to them for possible employment in Small and Medium-size Enterprise (SME) and Small Enterprise (SE). There will be significant increase in job matching for the unemployed to new jobs created by the new Specialized Economic Zone (SEZ). We create six groups sorted according to their Education, Gender, Training. , 4

. : We establish six tables for classifying unemployed persons. The classified group of unemployed residents will receive the targetted training so that they can be assimilated back to the workforce quickly. By grouping them, time taken to find employment will be reduced. Groups / Gender Women Men Total Group 1 13, 426 50, 074 63, 500 Group 2 9, 934 40, 231 50, 165 Group 3 13, 888 32, 784 4 , , . :

III.The limit of current policies The Economy of Republic of Djibouti grew at about 7.4% in 2016. The government of Djibouti put on the National Initiative of Development Social (NIDS) for fighting the poverty by focusing on policies like the providing microcredit and the microfinance. The policies did not yield the expected results. We propose that the social behaviours Djibouti residents should be studied before we can introduce a more effective policy that can reduce unemployment rate. . 6

IV. Our methodology or alternative method for fighting the unemployment and the poverty. We believe that development of the informal job sector will be key to alleviating the current unemployment problems. Formalisation will create more of SME and SM. Thus creating more job opportunities Our methodology which will be discussed in the paper allows for job creation. 7

Thanks for your attention. 8