UK-Djibouti Trade & Investment Forum London, May 8th 2013 CHAMBER OF COMMERCE OF DJIBOUTI

Mr Said Omar Moussa PRESIDENT CHAMBER OF COMMERCE OF DJIBOUTI HONORARY CHAIRMAN OF COMESA BUSINESS COUNCIL VICE PRESIDENT OF IGAD BUSINESS FORUM Brief introduction on the Republic of Djibouti

A DRIVING FORCE BEHIND THE DEVELOPMENT AND THE PROMOTION OF PRIVATE SECTOR Since 1907 CHAMBER OF COMMERCE OF DJIBOUTI

A priviledged position in the international exchanges : Situated on the 2 nd sea route in the world sea route in the world

Population  inhabitants  Languages : French, Arab, (officials) Somali, Afar (nationals)  English is increasingly used, due to the development of trade relations with the countries of the region and the installation of a U.S. military base (since 2003).

The economic context  Djibouti has opted for a liberal economy as of 1949, by abolishing any control on the exchange and by using the Djibouti Franc linked to the dollar as local currency. 1 $ US = Franc DJ  Based on service activities connected with the country's strategic location and status as a free trade zone in East Africa.

Economy  Positive growth trend since 2004  GDP (Growth Domestic Product) : 5.1 % in 2012  GDP composition by sector : Services : 81% | Industry : 16% | Agriculture : 3%  Imports in value : (USD Billion 2012) :  Imported Products : Food and Beverage, Hydrocarbons, Chemical products, Plastics, Rubber and Articles, Machineries and Equipments, Electrical Materials, Vehicules and transport equipments, Textiles  Exports in value (USD Billion 2012) :  Exported products : Livestock, Leather and Skin, Salt, Fish

External Trade

Investment  Salient features of the Investment Code - Foreigners and nationals benefit the same advantages - Freedom of investors to manage business and to repatriate profits - Tax incentives and specific tax exemptions (home consumer tax, income tax, property tax, registration duties, …) - Guaranties of rights and freedoms.  Foreign Direct Invesment (% of GDP 2012): 21%

Local Private Sector Major tertiary activities Transport and Logistics Banking and Insurance Technologies of Information and Communication (TIC) General Trade Services providers Health Services

Total Area : 12.2 million sq. Km GDP : US $ 450 billion (2011) Increase in Average Annual GDP growth : 5.08% from 3.51% (2010) Global trade for COMESA countries : Over US$ 244 BN (2010) Intra-COMESA Trade : US 18.4 BN (2011) Investment flows : US $ 21.6 BN (2010) Total Imports Volumes : US $ 137 BN (2010) at 16% Total Exports Volumes : US $ 107 BN (2010) at 26% Common Market for Eastern and Southern Africa - Region : More than 450 million people Membership : 20 countries : Burundi, Comoros, DR Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, South Sudan, Swaziland, Uganda, Zambia, Zimbabwe Djibouti an open gate to the COMESA

The COMESA-EAC-SADC Tripartite EAC COMESA SADC East African Community Southern African Development Community

CHAMBER OF COMMERCE OF DJIBOUTI Angola, Botswana, Burundi, Comoros, Congo DR, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Lesotho, Libya, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, South Africa, Sudan, Southern Sudan, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe The New Region

 27 countries  Over 581 million Inhabitants  GDP of plus 875 billion USD$  58% of the entire GDP of Africa as a continent THE BIGGEST ECONOMIC REGIONAL GROUPING IN AFRICA The New Region in figures Areas of Investment in the region Infrastructure  Infrastructure  Agro-industry and agro-processing Real Estate Development  Real Estate Development  New Technology Tourism  Tourism

 Member of :  Member of : WTO, IGAD, Arab League, African Union, ACP/UE, United Nationals and beneficiary country under AGOA  Private sector partnership network :  Private sector partnership network : Comesa Business Council (CBC), IGAD Business Council, Pan African Chamber of Commerce, Francophone Chamber of Commerce, Islamic Chamber of Commerce and Industry (ICCI)... And many bilateral partnerships Republic of Djibouti Worldwide Partnership

1- Transport and logistics activities : Key sector of Djibouti’s Economy  20 % of GDP  Harbour activities income : % public income  10 % of working population  Growth opportunity of the sector :  Perspective of strong and sustainable economic growth in Ethiopia (~8% a year)  Perspective of important commercial partnership with the recently independent South Sudan  Perspective of development of new connected activities: truckway and connected activities (mechanic), road building and management, ….  Regional Economic Integration with the COMESA Investment opportunities

2- Tourism : Great potential but underexploited  Geological sites, which are unique in their kinds  Marine fauna among the richest to the world  Cultural diversity due to cosmopolitan communities  Growth opportunity of the sector  Hotel infrastructures in development  An airport served by 6 international airlines  Possibility of combined tourism with Region countries (Ethiopia, Kenya, Yemen)  Goal in 2030: Djibouti wish to welcome more than tourists per year Investment opportunities

3- Renewable energies : Key sector For Djibouti’s Economy development  A solar energy potential of 2240 Kwh / sqm / year  A geothermal potential around 170 Mwh / year  A wind potential around an annual average of 9.2 m/s  Growth opportunity of the sector :  Huge public-private projects underdevelopment Investment opportunities

4- Fishing and halieutics resources: Plentiful resources but under-exploited  An annual production of 1500 tons (2011)  A potential of fishing estimated at tons / year  Relatively low capital inflow for the small-scale fishing but with good profitability  Growth opportunity of the sector:  Possibility of exports to the sub-region countries (Ethiopia and South Sudan)  Possibility of exports to the UE-ACP countries Investment opportunities

Because Djibouti has a strategic geographical location in the region Because it is situated on the 2 nd sea route in the world Because its political stability is an additional asset Because foreigners and nationals benefit the same advantages Because its currency linked to the dollar is freely convertible

Because Djibouti is the main corridor of the region, thanks to its port equipments Because its telecommunication system ranks among the best in Africa Because Djibouti is an open gate to a market of more than 450 million inhabitants, the COMESA. Because its financial system which is free of any kind of exchange control provides opportunity to a full freedom of money transfer

Tel : (+253) Fax : (+253) Address : Website : CHAMBER OF COMMERCE OF DJIBOUTI Thank you ! Hope to see you soon…