Transcript Diapositive 1 - Developing Markets Associates

Presentation of Djibouti
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Independence day: June 27th 1977
Total area : 23 200 km²
Population : 800 000
National Languages : Somali & Afar &
Arabic
• official languages : French and Arabic
• Currency : Djibouti Franc (FDJ),
pegged at fixed rate to the dollar for
more than 60 years. 1 $ US = 177,721
FDJ
GROWTH RATE
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GDP: USD 695M.
Growth rate: PIB 5% par an
GDP per capita: 1200 USD.
Foreign Direct Investment: 28.6 % of GDP in 2011
AT THE CROSSROAD OF THE GLOBAL
TRADE
Worldwide Connection
Aqaba
Salalah
INTRODUCTION
• Located on the horn of Africa Djibouti
enjoys the advantage of being in a
strategic position on the edge of the Red
Sea with easy access to three continents.
• the country constitute a gateway to most
African countries throughout its coastal
line, international airport, road and rail.
This situation makes Djibouti one of the
most appropriate business destinations.
WHY TO INVEST IN DJIBOUTI
AND NOWHERE ELSE?
Regional Hub
• Djibouti - a Regional Trading Hub - the
"Singapore of Africa"
• There are many good reasons why Djibouti is a
natural candidate to become a major Trading
Hub for Africa. The first and foremost reason is
its natural, geographic advantage being located
at the southern entrance to the Red Sea at the
"crossroads" of Africa, Middle East, Asia and
Europe. The Djibouti Government's plan to place
Djibouti as the "Singapore of Africa".
The republic of Djibouti offers various opportunities in many sectors
such as the tourism, financial sector, transport, telecommunication,
renewable energy, real estate, fishing or livestock. The Djibouti
government highly support and promote private sector investment.
Foreign and local investor alike can benefit from:
•Best port of the region with high standard of logistics
•Free Zone Services (No Corporate Tax, Completely Duty Free
Environment, Availability of quality infrastructure, Possibility to sell on
local market …etc)
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High standard and liberal international financial services
Stable currency pegged to the US dollar
No restriction of benefits repatriation
No currency restrictions
Political stability
Availability and possibility to buy a land for local as well as
foreign investor
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Substantial incentives given by the Investment Code
One Stop Shop services
Excellent telecommunication infrastructure
Availability of labor and flexibility of the Labor Code
100 % Foreign ownership
Possibility to employ foreign workers
100 % repatriation of capital and profits
Exemption from Income tax.
Investment Opportunities
Banking sector:
• Djibouti has also opened its doors to international financial
markets and the geographic position, the political and
economic stability hearten the development of banking sector.
• the country has one of the most liberal economic regimes in
Africa banking and commercial sectors are almost
unrestricted.
• Currently nine international new banks has set up a branch or
Headquarter in Djibouti.
• In Djibouti any international investor resident or non resident
in the country can without any period of time open an account
and can also transfer his or her money all over the world tanks
to appropriate regulations.
Tourism sector:
The Republic of Djibouti has a great potential in tourism, with
unique sites and exceptional beautiful beaches and the country
has vast unexploited opportunities in this sector:
• Development opportunities in Sea Safari: Situated at the
intersection of the red Sea and the Indian Ocean, the country
presents one of the most fascinating places in the world for
scuba diving with its variety of Fauna and Flora.
• Building Hotels/Bungalow/ and Touristic Villas in the key
touristic areas (Maskali island, Moucha Island, Day, Lac Abhe,
Goubet, Lac Assal, Randa)
• Creating parks, Marinas, and divertissement centre for tourist
and local population Divertissement
Primary and secondary sector
• Based on a favorable economic situation, the primary sector and
secondary sector evolve positively
• Thanks to the development of the fishing port and a training
centre, the trade of fishing will be important in the foreseeable
future.
• The breeding principal activity of the rural area, tends to be
developed thanks to the regional center of export of cattle.
Energy Sector
The energy sector is one of the strategic areas of the country.
Recent efforts to economic growth provided by Djibouti on one
hand, and geographic expansion resulting from rapid urbanisation
of the capital and other regions, have literally exploded the
demand for energy.
The region is suffering by under power electricity that blocks
development in most of the Comesa countries. Djibouti, with its
wide variety of energy, promotes among the private sector into
the investment. There are very high potential in wind , geothermal
and solar energy exploitation.
Substantial Incentives given to
investors and a one stop shop
for all procedures
Fiscal incentives are given to any project with a
minimum investment of 5 000 000 DF (30 000 USD)
Income tax
Direct taxation
Licence
Property tax
Domanial tax
Registration fees
Building permit tax
Indirect taxation
Home consumer tax
Tax on hydrocarbon product
Thanks to the one stop shop of the National Investment
Promotion Agency, local and foreign investors can benefit from
a full assistance in all steps as well as a personalized after
care service
Study of project
that needs
financing
Licences, work
permit, visas…
Land acquisition
ONE STOP
SHOP
Connexion to
water
electricity….
Registration of
staff
Registrations of
companies
After care service
An appropriate and incentives
business framework regulatory
•Business and investment projects set upped on the Republic of
Djibouti territory are eligible to the preferential rate insurance prime
of the Multilateral Investment Guarantee Agency (MIGA) of the
World Bank.
•Protection of intellectual and industrial properties accordingly to
relevant international agreements.
•Funding opportunities of Foreign Direct Investments by specialized
regional and international financial institutions like International
Financial Corporation (IFC) of the World Bank and private sector
financing branches of both African Development Bank and Islamic
Development Bank.
•Dedicated and personalized assistance at the National Investment
Promotion Agency’s One Stop Shop.
• Incentives offered by the Investment and Free Zone Codes and
Laws:
Thank you for your
attention