In Djibouti, it is impossible to ignore the ubiquitous presence of port infrastructure. Near the historic port in the heart of the capital, a brand new floating dock quickly catches your eye. Designed to accommodate vessels with deadweight tonnages of up to 50,000 tons, the industrial colossus is parked in the bay before a move to Dameljog, where a new strategic port is in shape to the south of the capital.
A few kilometres away, towards the Gulf of Aden, the gantry of the Dorare Container Terminal Management Company (DCTMC) controls the skyline. The terminal, a pillar of the Djiboutian Maritime sector, has become a key contributor to the country's GDP. Recently reinforced by four new gantry cranes, the facility can handle up to 1.8m TEU (21 feet equivalent units) per year.
Just behind it, on the coast, Dorare's Multipurpose Port (DMP) specializes in solids, minerals and agricultural bulk cargo. An important aspect of the Doraleh Multipurpose port is its ability to accommodate large vessels thanks to deep sea berths and modern handling equipment. The port has several special terminals to ensure efficient management of various cargo types. It is equipped with advanced cranes, automated systems and storage facilities designed to streamline operations and reduce turnaround times. These advances in technology make DMP an attractive destination for global transportation lines and businesses looking for reliable maritime logistics solutions. In 2024, DMP processed 3.4m tonnes of goods. This was an increase of 12% from the previous year.
This Djiboutian Port Network, centered around seven specialized facilities, is a rare model on the continent. In addition to Giants SGTD and DMP, terminals such as Tadjourah (specializing in ore) and Ghoubet (Salt Export) complete logistics provision. The whole is designed to capture the flow of international trade passing through the strategic Babu el Mandeb Strait, an area where around 15% of the world's maritime traffic passes.
Free Zone: Strategic Completion
To maximize its appeal, Djibouti is not satisfied with the port infrastructure. Because it integrates into a network of free zones, the actual growth relay captures more trade flows. The future Djibouti Daemel Jog Industry Free Zone (DDIFZ) 30 km southeast of the capital represents a huge investment of over $1 billion. By 2035, the industrial port site will include oil depots, refineries, cement plants and vessels equipped with vessels.
The megaproject specializes in the optical industry, in addition to the vast 4,800 hectares of Djibouti Free Trade Zone (diftz), which launched in 2018, as well as the home of international logistics companies. “The challenge for Djibouti today is not only to transport goods, but also to gain more value locally,” says Abdi Adawe Sigad, CEO of SGTD.
The rise in the value chain has already been evident in industrial players such as Golden Africa, a subsidiary of Yemeni HSA Group, which invested in Djibouti's palm oil refineries. Sites directly connected to the Port of Dorare not only import and redistribute, but also process and package the oil before exporting it to inland Ethiopia and other markets in the Horn of Africa.
At the same time, Djibouti is strengthening the integration of ports, airports, roads and rail logistics to improve trade flows. Chinese cargo (phones, jewelry, watches) pass through SGTD and DMP, then sorted in the free zone before being shipped to 53 cities and 36 countries via Ethiopian Airlines and Kenya Airlines. The aim is to establish its role as the region's main logistics hub.
Sectors facing their limits
However, Djibouti remains heavily dependent on port infrastructure and related services, and is said to generate more than 50% of the country's GDP. This is a dangerous concentration, as it exposes the country to external chaos, particularly tensions in the Red Sea.
Despite its importance from a GDP perspective, the port sector does not provide a proportionate amount of work. According to the observer, unemployment rates are high, especially among young people, and economic diversification is becoming essential. “I think the development of light industrialization is a concrete response to this challenge,” says Youssouf Moussa Dawaleh, president of the Chamber of Commerce. However, if Djibouti wants to make the most of this movement rise, it will need to solve another major challenge. It is the high energy cost that hinders the establishment of a high added industry.
