Interview with Youssouf Moussa Dawaleh, President, Djibouti Chamber of Commerce (CCD)

Nov 2024 Interview with Youssouf Moussa Dawaleh, President, Djibouti Chamber of Commerce (CCD)

What role does the Djibouti Chamber of Commerce (CCD) play in developing Djibouti’s private sector and economy?

The local chamber of commerce was established in 1907, making it more than 100 years old. It is the main link between the government and the private sector. The organization represents the interests of the private sector and ensures ongoing trust and partnership between private businesses and the government. The CCD is a public institution. However, it is managed by elected officials from the private sector. We are elected for five-year terms, with the next election taking place at the end of November 2024. The CCD actively participates in improving the business climate by acting as a platform for exchange and sharing of information. The chamber also acts as an investment showcase, actively welcoming foreign investors and assisting in new developments. We intervene in all priority areas of activity that the private sector is engaged in.

The chamber has historically participated in the economic development of the country. For example, in 1948 the CCD was a major component in implementing a fixed parity of the Djibouti Franc to the dollar. This was during the colonial era when France was here. From there, the chamber participated in the management of general stores, which were storage centers for products intended for re-export to neighboring countries such as Ethiopia and for international export from the port. The organization also helped develop the first free zone in Djibouti.

What changes have been made under the Vision 2035 initiative to modernize trade and update local infrastructure?

Djibouti is currently opening the doors to its latent opportunities. Djibouti is a distribution platform for goods that pass by sea. For example, all goods entering Ethiopia via the sea route come through Djibouti. This is true also for the internet due to a series of specialized lines from Djibouti. We share a deep ancestral relationship with Ethiopia, which is not only economic but also social and entrepreneurial. We have many strategic exchanges between the two countries that are advantageous to both sides. For example, fruits and vegetables produced in Ethiopia arrive in Djibouti.

The Vision 2035 program has put in place a series of strategic development partnerships. Under the initiative, the Ethio-Djiboutian railway has been replaced by a new electric railway that takes goods from the port of Djibouti to Addis Ababa, the Ethiopian capital, in eight hours. This was a significant project that will have a huge impact on trade and relations between the two markets. Under the national development program, we are also developing port, road and energy infrastructure, including wind and solar. Our renewable energy is intended for Djibouti, its population and industries to lower prices.

What makes Djibouti appealing for foreign direct investment?

The nation is an attractive destination for foreign investment for the five following reasons. First, Djibouti has enjoyed financial stability due to the fixed parity of the dollar to the Djibouti Franc. Second, the country enjoys peace and security with nations in the region and beyond. Third, the repatriation of profits in Djibouti is fluid, an element that does not exist in other countries in the region and continent. For example, if you have earned $1 million in Djibouti, you can utilize this amount to invest in other markets; investors will not be asked about the departure of profits. Fourth, countries like the United States, France, Japan, Italy, Spain, and China maintain a military presence in Djibouti, ensuring smooth operations and easy movement of goods and people. Their involvement provides investors with assurance and ensures security and stability. Fifth, we are a strategic market for the export of goods. Locally manufactured items are easily exported to Ethiopia, which houses a population of around 120 million, and Gulf countries. Goods are also exported from Djibouti to Africa under a zero-tax rate due to the Continental Free Trade Area agreed upon in 2015. Djibouti is open to foreign direct investment.

What major opportunities currently exist in the local market that might be attractive to US and other foreign investors?

Djibouti is very open to American companies entering Djibouti and taking advantage of our free zone for fast development. There are tons of opportunities involving developing local tourism, not only with the United States but also with European and other African countries. We have unique tourist sites that are not widely known. For example, one can witness a whale shark migration from November to March in the Arta Bay region. Lake Assal is a saline lake that lies at an altitude of 155 meters below sea level. It is similar to the popular Dead Sea site in Jordan with exactly the same terrain. We also have Lake Abbe and Moucha, Maskali and the Seven Brothers islands. We aim to develop these sites sustainably to add value to our tourism segment without attracting mass tourism.

Djibouti is not only a strategic zone for maritime activity and tourism but also for the development of digital technologies due to our 13 submarine cables. We have a ministry and a regulatory authority that are focused on developing digital capabilities in the country. Additionally, we are currently setting up data centers. A second license was recently given to an internet company. There is no lack of will in the digital segment. However, in terms of the role of the private sector, we are not yet satisfied. We expect more development in this area as opportunities expand. We are currently waiting for tangible results and expect advanced improvement in the coming months.

Can you tell us about the CCD’s efforts to support entrepreneurialism in Djibouti?

The Start-Up is a program to help young business leaders to develop their own businesses. We connect them with experts and business leaders who have succeeded in life to encourage and sponsor young business leaders. The program is set up in collaboration with the World Bank. We have completed two sessions, and it has been very successful. We will continue the program in 2025 to encourage the youth of the country to become our future business leaders.