From May 12 to 14, 2024, the capital of Djibouti hosted a major event: the Djibouti Forum. Organized under the patronage of President Ismail Omar Guelleh, the theme of the event was “The Gateway to Opportunity”. And the investment opportunities promised were huge for this small, strategically-positioned nation.
A prestigious line-up of speakers
This flagship event brought together an impressive array of speakers from the public, private and institutional spheres. Alongside the President of Djibouti and several government ministers, speakers included CEOs of multinationals, renowned institutional investors and pan-African economic experts. Representatives of institutions with over $2500 billion in capital were present, demonstrating the interest aroused by Djibouti’s initiatives.
The Djibouti Sovereign Wealth Fund, a catalyst for growth
The Sovereign Djibouti Fund (FSD) was a major contributor to the forum, highlighting its role as a driving force in accelerating investment. Under the leadership of its CEO Dr Slim Feriani, the FSD presented its strategy aimed at sustainably positioning Djibouti as a preferred destination for international capital. By establishing solid public-private partnerships and structuring deep financial markets, the SDF aims to catalyze sustainable and diversified economic development.
3.5 billion dollars sought in 3 key sectors
At this major economic event, the Djibouti authorities unveiled their ambitions to mobilize $3.5 billion in investment by 2035. This considerable package is focused on three strategic sectors:
Tourism, with 500,000 tourists/year expected by 2035. Djibouti is counting on this job-creating sector to diversify its economy, with a series of a dozen or so large hotels throughout the country.
The digital economy, an area of the future where Djibouti intends to position itself as a regional data hub, with the first data center in East Africa (Wingu africa) and others in the coming years to attract the GAFAMs (Google, Amazon, Facebook, Alibaba and Microsoft). Djibouti is already the African country with the most submarine cables (13 land in Djibouti).
This was the occasion for the launch of #StartupDjibouti, a government initiative aimed at cultivating a thriving startup scene in Djibouti. The objective is to lay the foundations for a robust startup ecosystem in Djibouti. It aims to attract entrepreneurs from Djibouti, all over Africa, the Djiboutian and African diaspora, and those with a deep connection to Africa. Support the growth of these startups to develop innovative solutions to Africa’s complex challenges.
Financial services, by deepening capital markets and strengthening the regulatory framework to stimulate a dynamic banking and fintech sector. Djibouti with free convertibility of its currency into other currencies.
A bright outlook for a resilient economy
Despite its modest demographic weight and GDP, Djibouti is a resilient and promising economy on the continent. Taking advantage of its geostrategic position as a maritime gateway to Ethiopia, the country has substantially developed its port and logistics infrastructures in recent years.
The forum also highlighted the potential for economic diversification, from the exploitation of energy resources such as wind power, to high value-added agricultural projects and the strengthening of fishing and agri-food processing activities.
What’s in it for a start-up like #Dalmar ?
It was against this backdrop of rich opportunities that Djibouti tourism start-up Dalmar took part in the Djibouti Forum with great interest. For our startup, whose ambition is to boost the tourism and travel sector in the region, the event represented an ideal platform:
- Make yourself known to potential investors and build a network of strategic partners.
- Identify concrete opportunities in planned tourism projects.
- Capture trends and innovative solutions in your sector.
- Understand the facilities and regulatory framework that will be put in place to support its business.
All in all, this high-flying meeting reaffirmed Djibouti’s ambition to position itself as a key economic hub in the Horn of Africa. By deploying bold strategies via its sovereign wealth fund, raising substantial amounts of capital, and closely involving the private sector, the small nation seems determined to turn its ambitious reform and investment program into reality in the years to come.
Yacoub Aden Miguil
CEO and founder of startup Dalmar, a passionate traveler and photographer. He strives to make travel accessible, respectful of the environment and rich in experiences.