Doing Business in Djibouti

Djibouti has no major laws or regulations that would discourage incoming foreign investment. In principle there is no screening of investment or other discriminatory mechanisms. Certain sectors, most notably public utilities, are state-owned. Conditions of the structural adjustment agreement recently signed by Djibouti and the International Monetary Fund stipulate increased privatization of government-owned monopolies.

Major challenges to doing business in Djibouti include the high cost of telecommunications, much higher than in the U.S. or Europe, as well as the cost of living, in which prices can be as much as two to four times those in the United States. Further, labor is expensive. A 70-percent unemployment rate and low-levels of education and technical skills makes finding skilled workers, particularly English speakers, quite difficult.

Businesspersons should visit www.export.gov to find the latest market analyses, trade events, trade and investment climates, and trade leads for Djibouti. Select Market Research in the Find Opportunities menu and follow the link to the Market Research Library. Businesspersons are not required to register by company to obtain the Djibouti Country Commercial Guide for 2008. Access to all other market data will require registration with the U.S. Commercial Service.

 The Political Officer, assisted by an FSN Commercial Assistant, runs the embassy Commercial Section. The embassy remains at your disposal to provide information and help. Contact Commerical Assistant Abdi Mahamoud Abdi at (253) 35 39 95 or mahamouda@state.gov