Djibouti president ismail omar guelleh launched the first phase of chinabuilt djibouti international free trade zone diftz on thursday. Learn about working at djibouti international free trade zone. Djibouti, with a population of 876,000, already hosts chinese, us and french naval bases and it also handles roughly 95 per cent of the goods imported by ethiopia, its landlocked neighbour with 99 million people. It enables djibouti to connect global business with booming african markets and. An international free trade zone diftz in djibouti to better connect african and international markets. Djiboutis new freetrade zone creates opportunities.
The area enables users to operate without paying several types of tax. The concern is not necessarily with djibouti or the diftz specifically, but rather with chinas involvement. Running it along this diftz clearly shows good planning and if adhered to it will be a massive economic project not just for djibouti but the region too. The dpfza reports directly to the presidential office.
The new international free trade zone provides a strategic base for global businesses to. Djibouti launches africas biggest free trade zone france 24. The djibouti international free trade zone celebrates its first anniversary today. In a nutshell, china participates in djiboutis economic transformation. President paul kagame has arrived in djibouti at the invitation of his counterpart ismail guelleh for the inauguration of djibouti international free trade zone. Djibouti launches chinabuilt free trade zone chinadaily. Djibouti breaks ground on massive chinesebacked free trade zone by abdourahim arteh djibouti jan 16 the president of djibouti on monday formally launched the construction of a project touted as africas largest free trade zone, to be built in the tiny horn of african nation with chinese. See who you know at djibouti international free trade zone, leverage your professional network, and get. Major logistics infrastructure, a new free trade zone and. For the authority of ports and free zones, aden moussa douksieh, project manager, robleh djama ali, head of the communication and public relations department as well as mr mohammed aref mohammed head of the marketing department. The new trade zone covers 48 square km and was built by chinas dalian port corporation.
Registered free zone companies can get permission to remove goods dutyfree from the port and transport them to another location for further processing. The president of djibouti on monday formally launched the construction of a project touted as africas largest free trade zone, to be built in the tiny horn of african nation with chinese backing. In addition to its transport infrastructure, djibouti hopes that foreign firms will be enticed to invest in the free zone by the countrys open investment regulations. Djibouti on thursday launched the first phase of africas biggest freetrade zone, seeking to capitalise on its strategic position on one of the worlds busiest trade routes. Guelleh said that in its pilot phase, the free trade zone is expected to boost gdp by 11 percent. Somalias president, mohamed abdullahi mohamed, hailed the freetrade zone as a victory for east africa, in comments echoed at the ceremony. Will djibouti become latest country to fall into chinas. The first phase of a chinesebuilt free trade zone billed as africas largest opens today in djibouti. China to expand strategic djibouti free trade zone. Djibouti ports and free zones authority dpfza home.
As such, china sees djibouti as a strategic hub for protecting trade, and set up its first foreign military base in the country. National flags of china and djibouti are seen in front of djibouti international free trade zone diftz before the inauguration ceremony in djibouti, july 5, 2018. In a ceremony last week attended by heads of state from across east africa, djibouti inaugurated what it says will become the largest freetrade zone on. Djibouti, capital of the east african state of the same name, is getting a makeover as a chinesebuilt djibouti free trade zone ftz, which will be the largest of its kind in africa, paving the. Djibouti free trade zone demonstrates true value of china. The dpfza also oversees the management of djibouti international free trade zone, serving as a liaison between the companies based there and other governmental agencies. Construction on the chinafunded djibouti free trade zone started on monday, reported global times.
In order to promote exports, djibouti has multiple free zones where companies enjoy full exemption from direct and indirect taxes for a period of up to ten years. The 240hectare trade zone will comprise of several major. An initial group of 21 companies moving into the zone were named thursday. Serving as an international logistics hub to the common market for eastern and southern africa comesa, the middle east, asia, europe and north america, the dfz is instrumental in facilitating global trade and supporting the growing economic emergence of not only djibouti but also east africa. The djibouti ports and free zones authority dpfza governs the administration, directives and operational management of djiboutis ports, infrastructure, and special economic zones. Chinese funded, multibillion dollar djibouti international free trade zone diftz appears to position the tiny nation as a growing trading hub for the entire east african region.
The african free trade zone is also referred to as the african free trade area in some official documents and. Djibouti free zone jafza creating the right business environment for investment and trade djibouti free zone dfz, operational since october 2004, position djibouti as the regional logistics, trade and marketing hub for the import, warehousing, processing and reexport of goods to and from the eastern african countries. Djibouti, a tiny state located on the horn of africa, has just opened its chinese built international free trade zone. The zone is set to be jointly managed by the djibouti ports and free zones authority and china. Djibouti ports and free zones authority is the regulator of djibouti ports, freezones and related transport professions. Djibouti inaugurates africas largest free trade zone. Friday july 6, 2018 djibouti on thursday launched the first phase of africas biggest freetrade zone, seeking to capitalise on its strategic position on one of the worlds busiest trade routes. It also invests through its subsidiary ghih great horn investment holding in major infrastructure project in the country. Djibouti, a tiny state in east africa, opened a chinesebuilt international free trade zone on thursday. The djibouti free zone dfz is located on 40 hectares and offers office space, warehouses, light industrial units, and hangars. The project will be operated by a joint venture invested by chinese enterprises including china merchants holdings, dalian port corporation limited as well as the djibouti ports and free zone authority.
Djibouti has launched the djibouti international free trade zones diftz, africas biggest trade zone that will comprise a total investment of. Thanks to china, africas largest free trade zone has. How free trade zone is lighting up djibouti the warsan. Please note also the participation of the director general of djiboutis economic development fund mr ali aly houmed. Djiboutis international free trade zone is really just. Djibouti is 10 years ahead of rivals new african magazine. The first phase of the djibouti international free trade zone diftz was officially inaugurated in july 2018 under the auspices of the heads of state of djibouti, rwanda, ethiopia, sudan, and somalia as well as the chairperson of the african union commission, and key shareholders such as china merchants. Risks aside, the agreement to expand djiboutis free trade zone as part of chinas one belt, one road policy, has the potential for both countries to strengthen their respective economies by benefiting from emerging african markets. The djibouti international free trade zone, which is being built by chinese port operator dalian port corporation, will ultimately span 4800 ha and enable investors to undertake operations without paying property, income or valueadded taxes. Djiboutis new freetrade zone creates opportunities, deepens. So on the face of it, the phase 1 opening last month of the chinese funded, multibillion dollar djibouti international free trade zone diftz appears to position the tiny nation as a growing trading hub for the entire east african region. At the launch, kagame said, i just wanted to say how hap.
Background the presidents of the djibouti ports and free zones authority dpfza and the chinese stateowned group, china merchants. But why would the construction of a free trade zone in a small, resourcepoor country in africa with a population of less than 1 million people and a gdp of less than 1. The diftz is a sprawling complex meant to house four industrial clusters. The zone will be managed by djibouti as a majority shareholder with three chinese companies.
Djibouti port community systems your one stop for all importexport information exchange through ports, airports, rail and corridor. The djibouti international free trade zone diftz will transform trade in the region and provide a strategic. The country in the horn of africa enjoys cordial relationship with rwanda. Djibouti free trade zone causes concern over china. The construction of the djibouti free zone dfz in 2004 marked a significant milestone. China and djibouti have launched africas biggest free trade zone. Djibouti breaks ground on massive chinesebacked free. The african free trade zone aftz is a free trade zone announced at the eacsadccomesa summit on 22 october 2008 by the heads of southern african development community sadc, the common market for eastern and southern africa comesa and the east african community eac. The nearly 50 sq km 31 sq miles zone will house manufacturing and warehouse facilities. China has helped launch the first phase of africas biggest free trade zone as whats part of another major step to secure its position as a global trade leader. Djibouti ports and free zones authority dpfza linkedin.
Kagame in djibouti for inauguration of intl free trade zone. The president of djibouti on monday formally launched the construction of a project touted as africas largest free trade zone, to be built in the. Djibouti has a population of less than a million and covers a total area of just 23,200 square km, yet it is in the middle of the biggest infrastructure development project in history, all because of the djibouti international free trade zone diftz. A publication in the galati free zone website lists five important activities that make a free trade zone beneficial.
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