All credit goes to Djibouti’s fortuitous setting between East Africa and the Middle East, on a key trade route between Asia and Europe, the nation has long played a vital role in regional trading.
This has transformed into a vibrant transport sector and noteworthy GDP growth rates since the mid-2000's. In order to take its geographic rewards to the next level; however, Djibouti will need to safeguard that large-scale investments to renovate its transportation systems are implemented suitably.
The transport sector is the pillar of the Djiboutian economy. In other words, we can say that the transport chain is the essence of the country’s economic activity and accounts for the performance of the services sector. Transport and logistics contribute approximately 28% to the sector’s GDP. It’s not a hidden act that Djibouti is one of the leaders in the port activities segment in the northern region of COMESA. Sitting in the Gulf of Aden and on one of the world’s busiest trade routes linking Europe, Africa and Asia, Djibouti has erected its economy around transport and logistics services.
Certainly, Djibouti is speedily strengthening its claim to becoming East Africa’s most operational coastal transportation hub in a region conceivably better known for quasi-military activity than for the growth of infrastructure.
Government’s aim is to reduce transport restraints and to facilitate sustained economic growth and contribute to poverty reduction. In order to endorse trade and the country’s competitiveness, government action seeks to foster the development of an efficient, multimodal transport system, to collaborate with regional partners to develop connectivity in the transport chain at regional level, and to boost SME participation in transport activities.
In terms of air transport, a new international airport is planned near Djibouti City. It will comply with the international standards for civil aviation. Alongside these major transport infrastructure projects, large free zones will be developed to attract businesses and encourage job creation.
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