What are your assessments about the impact of the conference a year after the first edition of the forum hosted by the Djibouti Sovereign Wealth Fund (FSD)?
It is important to understand that such forums do not produce immediate effects, but lay the foundation for long-term dynamics. Investing is like marriage. Before considering any specific commitments, you need to get to know each other, exchange ideas, and develop relationships.
At this stage, we have laid a solid foundation in terms of vision and networking. From a quantitative perspective, the results are impressive. Thanks to our partnership with IC Publications, we have reached over a million people through social networks and publications such as African businesses and African bankers, as well as new African magazines.
Over 400 participants from last year, including around 100 foreign investors including CNBC, Financial Times and USA Today and 18 international media outlets, participated in last year's forum. A total of 280 institutions (asset worth $2.5 trillion) were represented, and 46 high-level speakers were welcomed.
Qualitatively, the forum helped to strengthen Djibouti's perception as an important economic hub for the region. Investors have discovered the country for the first time and we have begun a strategic discussion that hopes to lead to concrete commitments in the coming years.
I also signed two memorandums of understanding using Paix Data Center and Tamini Assurance.
Is this year's priority sector proposed to attract new investors?
Our priorities are clear and in line with His Excellency's Vision 2035 are President of the Republic: Tourism, Renewable Energy, Financial, Digital Technology, Logistics. Tourism is still a major opportunity that is almost undeveloped. Djibouti has untouched beaches and islands, exceptional landscapes and unique biodiversity (see page 36).
Renewable energy is another strategic focus that is essential to ensuring the autonomy of a country's energy. Several large projects have already begun, particularly in collaboration with AMEA Power and Neo Themis. With its aim to achieve 100% renewable energy by 2035, FSD plays a key role in funding these initiatives.
Finance also occupies a central location, positioning Djibouti as a bank and investment hub in East Africa. The arrival of Egyptian bank MISR and the development of innovative financial products such as crowdfunding and leasing have strengthened our position in this sector.
The country is also focusing on digital technology. Thanks to 10 submarine cables, Djibouti is a global internet intersection. We are working on data centers and technology hub projects to attract new technology-specific companies.
Finally, logistics remains a pillar of the national economy and is the subject of constant modernization efforts. Other sectors are also emerging, such as education, health and industry, and play an important role in the economic diversification of the country.
How much has FSD been made since its creation in 2020?
During my three years here, we have built a capable team, defined investment priorities and established solid governance. Today we own 100% of the Djibouti Télécom, hold 40% of the Great Horn Investment Holding (GHIH) and develop a diverse investment portfolio.
We launched the country's first crowdfunding company and invested in renewable energy. We funded the construction of our first university restaurant and are working to create a data center to support digital conversion. We have strong ambitions. It is building generational savings by diversifying assets nationwide and internationally. Our current objective is to diversify risk, achieve a balanced distribution of 50% internal investment and 50% foreign investment, and take inspiration from successful models such as Singapore and the Bay. It is also considering co-investment with other African and international sovereign wealth funds to maximize capacity and attract more capital.
Can Djibouti be the main gateway to a subregion of 400 million consumers?
Djibouti is in a unique location. We are at the intersection of Africa, the Middle East and Asia. Our logistics and digital infrastructure make it an ideal platform to serve your local community. In addition, our financial stability is an asset that cannot be denied. Unlike many emerging countries, Djibouti does not have any exchange rate risk. Djiboutian Franc has been locked in the dollar since 1949, ensuring valuable stability for foreign investors.
Adding this a favorable regulatory framework, an attractive tax system and a professional business environment will give you the perfect destination for international investors.
Djibouti is often compared to Singapore for its strategic positioning. What steps do you need to follow to get closer to this development model?
Djibouti follows a Singapore-inspired trajectory. In the 1970s it was a small marsh island. Thirty years later, it established itself as a global financial and logistics center. Djibouti shares some of its characteristics. Strategic location, manageable size, exceptional digital and maritime connectivity. Today there are around 20 submarine cables in Singapore, and Marseille is around 3pm. There are already 10 in Djibouti, and more is underway. We want to develop this digital infrastructure into a competitive digital economy, just as Singapore has done in its data centers and technology hubs.
How do you see the future development of the Djibouti Forum?
Djibouti aims to become an important African event for international investors, such as the Doha Forum in the Middle East and Davos in Europe. The aim is to make it a strategic platform for those interested in African opportunities.
It focuses on quality interactions between key players rather than large events. This year we expect 150-200 international participants. The goal is to double this number within five years.
Ultimately, the forum should establish itself as a catalyst for investment by promoting Djibouti's unique assets, stability and political will, fully convertible currency, geostrategic status and security (thanks to some foreign military bases).
The purpose of this forum is also to strengthen Djibouti's international image. In general, when it comes to Africa, one of the main challenges for Djibouti is the gap between perception and reality. In many cases, investors are influenced by the biased views of the continent, but the situation on earth is very different.
What we do in our forums and communications activities is to invite investors to come and watch for themselves. There is a big difference between reading the report and visiting the country in person. Those who come out leave with confidence in the country's potential.
If you had to persuade foreign investors to invest in Djibouti, what would your important argument be?
Investing in Djibouti today means gaining the benefits of an early mover. The Djiboutian economy is still young, but is growing at a steady rate of 6% to 7% per year. In five or ten years, the current opportunity will be taken.
For investors, Djibouti offers a rare combination of benefits, including political and financial stability, political will, the pro-business environment, exceptional digital and logistic connections, and access to local markets of 400 million consumers. Those who understand this dynamic have a head start.
