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Djibouti's Economic Diversification and Cooperation with China

2024-06-01 09:55:46.757000

Former U.S. Special Envoy for the Sahel and Great Lakes Regions of Africa, Peter Pham, emphasizes the importance of understanding Ethiopia's legitimate interests and needs to access the sea and ensure economic security for its people. Pham believes that Ethiopia, as a country that has played a critical role in providing peace and security in the region, deserves goodwill and understanding for its legitimate interests [d69d8165].

Pham expresses his support for the Memorandum of Understanding (MoU) signed between Ethiopian Prime Minister Abiy Ahmed and Somaliland President Muse Bihi Abdi, stating that international relations should be based on reality and the geopolitics and economics of the Horn of Africa region. He highlights Ethiopia's legitimate interest in having redundant port structures and the economic sense of the Berbera Port [d69d8165].

Pham also emphasizes the importance of critical infrastructure in Africa and the positive impact it has on economic growth and prosperity in the region [d69d8165].

The President of Djibouti, Ismaïl Omar Guelleh, has maintained stability in the region and overseen economic progress by leveraging the country's strategic geographic location and developing its ports infrastructure. Djibouti manages conflicts in the region through a proactive foreign policy based on dialogue, moderation, mediation, and innovation. The country maintains diplomatic relations with China and the United States, positioning itself as a strategic partner for both. Djibouti is seeking to renegotiate agreements with foreign military bases on its territory to ensure balanced and mutually beneficial partnerships. The country has made significant economic and social progress, including a fivefold increase in GDP since 2000 and a reduction in extreme poverty. Djibouti is working to attract private sector investment by removing regulatory barriers and creating a favorable business environment. The Djibouti Sovereign Wealth Fund, inspired by Singapore's Temasek, aims to attract public and private capital for sustainable infrastructure, tourism, green energy, and communication technologies. Djibouti is contributing to the African Continental Free Trade Area (AfCFTA) by facilitating the transit of goods, investing in infrastructure, and promoting regional economic integration. As Chair of IGAD, Djibouti is committed to promoting peace, security, and development in the region and resolving crises in Sudan, Southern Sudan, Somalia, and Ethiopia. The country is also reforming IGAD to improve its functioning and capacity to respond to regional challenges. [91ee82eb] [d69d8165]

Djibouti is poised to diversify its economy and become a regional hub for logistics, finance, tourism, and information and communications technology (ICT) with the help of cooperation with China. Djibouti's strategic location connecting Africa to Asia and Europe by sea is a significant advantage. The country has been developing its position as a regional logistics hub through Chinese-built projects such as the Doraleh Multipurpose Port, the Djibouti International Free Trade Zone, and the electrified transnational railway connecting Djibouti to Addis Ababa. Djibouti aims to create an attractive investment climate across various sectors and diversify its economy beyond logistics and ports. The country's economic diversification ambition is further supported by its cooperation with China, including infrastructure projects like the Doraleh Multi-Purpose Port and the Ethiopia-Djibouti railway. Djibouti is also investing in renewable energy and aims to become a digital economy hub in the region. The CEO of Djibouti's sovereign wealth fund emphasized the country's stability and attractiveness to international investors, as well as its potential as a major international tourism destination. Djibouti looks forward to deepening its partnership with China for mutual benefit. [45677be0] [91ee82eb]

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