As the flight from Dire Dawa, Ethiopia descends into Djibouti airspace, it is hard to ignore Djibouti’s strategic location and importance. Bordering the Gulf of Aden and the Red Sea and situated between Eritrea and Somalia, Djibouti is the route to the sea for African countries such as South Sudan and Ethiopia. Ethiopian imports and exports account for more than 65% of the port activity at Djibouti’s container terminal.
From the perspective of ‘the West,’ this is a strategic country in the middle of the unstable Horn of Africa. It is home to the only U.S. military base in Sub-Saharan Africa and the largest French foreign military base. The Japanese opened a base in the past few years to help in the fight against piracy on the sea. And the Sheraton Hotel, at times, performs as a base for the Germans (absent the military aircraft and watercraft).
From an investor’s perspective, Djibouti is a young country that presents untapped opportunities. Here are my recommendations in no particular order of importance, or potential internal rate of return (IRR):
Overall, Djibouti is a country that still radiates natural untouched beauty. You often wonder how it has stayed under the radar.