Djibouti is a country with few resources and recognizes the crucial need for foreign investment for its economic development. The country’s assets include a strategic geographic location, a Free Zone, an open trade regime, a stable currency, substantial tax breaks, and other incentives.
Djibouti is East Africa’s largest deepwater port and its service-based economy revolves around its port business. A new fuel pier was dedicated in 2006 and a new US$ 400 million container terminal in 2009.
In December 2012, Djibouti and Ethiopia laid the cornerstone for a new US$ 61 million port in Tadjoura, designed to ship potash from northern Ethiopia. In February 2012, Djibouti, Ethiopia and South Sudan signed a tripartite Memorandum of Understanding (MOU) to build an oil pipeline from South Sudan to Djibouti port via Ethiopia.
Djibouti’s laws encourage foreign investment. In principle, there is no screening of investment or other discriminatory mechanisms in the country.
Djibouti National Investment Promotion Agency (NIPA)
The National Investment Promotion Agency is in the heart of social and economic system of the country since its establishment in 2001. It encourages the promotion of investment in Djibouti through a policy of flexibility in investment operations, a modern regulatory framework and procedures.
Investment Climate in Djibouti has been summarized to include the following