Djibouti is a small independent republic with a democratic government which lies in the Horn of Africa at the southern entrance to the Red Sea and forms part of the North East African Region.
The country consists of the port capital Djibouti where two thirds of the population live, and a surrounding enclave of hinterland.
The official languages are Arabic and French. The local currency is the Djibouti franc. (US$/ Djib Fr - current exchange rate).
The international time zone for Djibouti is GMT +3 and the international dialling code is +253. Djibouti has an international airport served by Air France and the national carrier, Air Djibouti. As at January 1996 all nationals except France require visas in order to visit Djibouti. /P>
Djibouti has a very open economy and there are almost no capital controls. Since 1949, the Djiboutian Franc has been pegged to the US dollar and is freely convertible.
Most of Djibouti’s economic activity is centered around its port linked to Ethiopia’s capital by rail. It is one of only three ports operating in the horn of Africa and is useful for trans-shipment and as a refueling point. The management of the country’s main airport, the Djibouti International Airport has been granted to a private company and is an indication of the privatisation process underway in the country.
Authorities have implemented reforms aimed at improving fiscal discipline and transparency and legislation has been promulgated in order to strengthen the regulation of the country’s financial sector. The tax regime has also been improved as a result of measures reforming the tax system and the government has also strengthened the management of public expenditure.
Agriculture accounts for only 3.8% of GDP and includes nomadic livestock activities as well as the cultivation of dates on small areas of irrigated land. Fishing is a small industry, while sea salt is one of the country’s main resources. Services is the main sector contributing to GDP accounting for 81.8% and industry accounted for 14.4% and GDP totaled US$596.6 million in 2002. In 2001 the country attracted foreign direct investment worth US$3.4 million.
