Djibouti

Economy

Djibouti's economy is based on a number of service activities associated with its strategic location and its position as a free-trade zone. It is a major port for NE Africa, as well as an international transshipment and refueling center. Otherwise, the nation is largely economically underdeveloped and there is high unemployment. Nomadic pastoralism is a chief occupation; goats, sheep, and camels are raised. Fruits, vegetables, and dates are grown. With few natural resources (there are significant salt deposits), Djibouti's industry is mainly limited to food processing, construction, and shipbuilding and repair. The city of Djibouti is the terminus of the Addis Ababa–Djibouti RR; it and the port were modernized beginning in the late 1990s. The main exports are hides and skins, cattle, and coffee (transshipped from Ethiopia). Djibouti imports foods and beverages, transportation equipment, chemicals, and petroleum products. Its economic development depends largely on foreign investment and aid. The main trading partners are Somalia, Ethiopia, Saudi Arabia, India, and China.

The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved.

More on Djibouti Economy from Fact Monster:

See more Encyclopedia articles on: Djibouti Political Geography