Djibouti
As a least-developed country (LDC), Djibouti is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank classifies Djibouti as a lower middle-income economy with a per-capita income of $3,555 in 2023. Total EU imports from Djibouti amounted to about €6.6 million in 2023; preferential EBA imports reached €2.8 million.
What is the EBA?
The EBA arrangement covers all LDCs as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.
At a glance: EU preferential imports from EBA beneficiary countries (2023, € million)
1.2M (2023)
Population
Presidential Republic
Government
6.7% (2023)
GDP Growth
1.5% (2023)
Inflation
$ 4.1B (2023)
GDP
Facts about Djibouti's economy
Strategic Location
Djibouti is strategically located in Eastern Africa and has access to the Red Sea and the Gulf of Aden, one of the world’s most important shipping routes. Its location makes Djibouti a transport hub for neighbouring countries as well as for the region as a whole.
Export Products
Djibouti's leading exports in 2023 were vegetable oils. Djibouti also exports coffee and different types of beans (kidney, chickpeas, soya).
Trade Partners
Djibouti's most important trading partners are the EU, the UAE and China. Together these countries accounted for about 40% of total trade in 2023, which, however, is mostly driven by their importance as import markets. The largest share of Djibouti's exports goes to Singapore as well as neighbouring Ethiopia and Somalia.
Economic Structure
Djibouti's economy is mainly based on the services sector which contributes about 80% to the country's GDP. The services sector includes telecommunications, financial and trade related services connected to its geographical position on the Horn of Africa and its modern port complex. The agricultural potential is small due to harsh terrain and unfavourable conditions and existent activity is mainly for subsistence purposes. The industrial sector remains underdeveloped.
Importance of Trade
With a trade openness ratio of 343% (2023), Djibouti ranks among the world’s most open countries. This ratio also reflects the high importance of international trade for the small economy and its role as a transit country for neighbouring land-locked Ethiopia.
Trade with the EU
Total trade with the EU amounted to €381 million in 2023. The EU is Djibouti's most important trading partner and accounts for 18% of total trade. This is mostly driven by imports from the EU (21% of Djibouti's total imports). On the other hand, the EU only is the 13th largest export market for the country.
Djibouti and the EU
Imports from Djibouti by product section (2023, € million)
Imports from Djibouti over time (€ million)
DJIBOUTI AND THE EU GSP
Economic Impact
82%
Share of Djibouti's exports to the EU that were eligible for EBA preferences in 2023.
54%
Djibouti's preference utilisation rate in 2023.
61%
Share of zero-duty imports from Djibouti.
Preference utilisation and export diversification
EU imports from Djibouti (€ million)
Preference utilisation (%) vs. total eligible imports (in € million)
The pattern of EU imports from Djibouti varies strongly over the years. EBA-eligible imports accounted for a large share in the EU's total imports from Djibouti in recent years, and their value increased sharply from a low point in 2020. The country started using the preferences really only in 2022, but the preference utilisation still fluctuated heavily - from 2021 to 2023, it ranged between zero and more than 80% (54% in 2023). This can be explained by the relatively small volume of eligible exports (€5 million in 2023). The most important product groups using the EBA preferences are textiles and apparel.
The largest product sections under EBA (€ million, 2023)
The largest product sections under the EBA changed drastically from the 2019. In 2022, The EU started importing fibres and fabrics from Djibouti, which now account for over half of the total import. However, the utilisation rate remains low, around 13%.
SUSTAINABLE DEVELOPMENT
As a beneficiary of the EBA, Djibouti is not obligated to ratify any conventions to be able to benefit from preferential access to the EU market. Still, Djibouti has a high level of ratification of international conventions. It has ratified 14 out of 15 core conventions on the protection of human rights and labour standards. Furthermore, Djibouti has ratified 8 international conventions on the protection of the environment and 4 good governance conventions.
Core international conventions on human rights and labour standards
Ratified
- International Convention on the Elimination of All Forms of Racial Discrimination (1969)
- International Covenant on Civil and Political Rights (1976)
- International Covenant on Economic Social and Cultural Rights (1976)
- Convention on the Elimination of All Forms of Discrimination Against Women (1981)
- Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
- Convention on the Rights of the Child (1990)
- Convention concerning Forced or Compulsory Labour, No 29 (1930)
- Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
- Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
- Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
- Convention concerning the Abolition of Forced Labour, No 105 (1957)
- Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
- Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
- Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)
Not Ratified
- Convention on the Prevention and Punishment of the Crime of Genocide (1948)
Additional Conventions
- Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
- Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
- Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
- Convention on Biological Diversity (1992)
- The United Nations Framework Convention on Climate Change (1992)
- Cartagena Protocol on Biosafety (2000)
- Stockholm Convention on persistent Organic Pollutants (2001)
- Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
- United Nations Single Convention on Narcotic Drugs (1961)
- United Nations Convention on Psychotropic Substances (1971)
- United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
- United Nations Convention against Corruption (2004)
EU-Djibouti Bilateral Development Cooperation
DG INTPA
Access all info about EU-Djibouti relations on the International Partnerships website.