Djibouti

Djibouti is a beneficiary of the EU's "Everything but Arms" (EBA) scheme for least developed countries. With a per-capita income of $ 3.310 in 2022, the World Bank considers Djibouti a lower-middle income country. Overall imports from Djibouti amounted to about € 10 million in 2022. About 16% of these imports are traded using EBA preferences.

What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

Djibouti flag

At a glance: EBA beneficiaries' preferential imports to the EU

group

1,12 M

Population

account_balance
Presidential Republic

Government

trending_up

3.10%

GDP Growth

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1.80%

Inflation

money

$ 3,52 B

GDP

24 -

Freedomhouse index

4 -

ITUC Global Rights Index

47.5 ^

Environmental Performance Index

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 exports are dominated by live animals, including camels, sheep, and goats. 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 account for over 40% of total trade, which, however, is mostly driven by their importance as import markets. The largest share of Djibouti's exports goes to 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 340% (2022), Djibouti ranks among the world’s most open countries. This ratio also reflects the high importance of international trade for the small economy.

Trade with the EU

Total trade with the EU amounted to € 246 million in 2022. The EU is Djibouti's most important trading partner and accounts for almost 16.2% of total trade. The largest share results from imports of European products which summed up to € 296 in 2022.

Djibouti and the EU (2022)

Imports from Djibouti by product section

Imports from Djibouti over time (in € m)

DJIBOUTI AND THE EU’s GSP

Economic Impact

57%

Over half of Djibouti's exports to the EU market are eligible for preferences granted by the EU's EBA arrangement.

16.50%

Djibouti currently has a low preference utilisation rate of 16.5%.

Preference utilisation and export diversification

Djibouti's imports to the EU

Preference Utilisation vs. total eligible imports

Between 2020-2022 the total imports from Djibouti have doubled, but the utilisation rate remains low. A number of prominent import products from Djibouti, including, for example, coffee, already benefit from most favoured nation duties.

The largest product sections under EBA

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 European 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 Assistance

DG INTPA

Access all info about EU-Djibouti relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/djibouti_en

Opportunities in Djibouti

  • Djibouti possesses untapped marine resources which could support an expansion of the fishery sector
  • There is an infrastructure of undersea telecommunications cables which could build the basis for digital and service industries
  • Potential for renewable energy production, including geothermal and solar energy
  • Continuous expansion of the transportation infrastructure, most recently port capacities were expanded and a new railway line to Ethiopia was established
  • Strategic location at the between the Red Sea and the Gulf of Aden

Contact points