Djibouti: Trade Profile

Foreign Trade in Figures

Djibouti’s economy is very open to external trade, which represents 294% GDP (World Bank, 2020). Djibouti has a free trade regime and a free-trade zone status in Eastern Africa. It is a member of the WTO, the IGAD (Intergovernmental Authority on Development), the COMESA (Common Market for Eastern and Southern Africa), the Arab League and the African Union, has signed the African Continental Free Trade Agreement and a number of bilateral agreements. Djibouti has shown great interest in fostering regional economic integration, particularly with Ethiopia. Djibouti mainly exports or re-exports animal fats, chlorides, cattle, vehicles, machinery and food. The country mainly imports animal fats, petroleum products, vehicles, fertilizers, food, and other capital goods.

Djibouti’s main customers are Ethiopia (25.1% of total exports), China (21.8%), the United States (19.3%), India (8.2%) and Saudi Arabia (7.6%). The country's main suppliers are China (42.5% of total imports), the United Arab Emirates (13.9%), India (6.2%), Turkey (5.9%) and Morocco (4.6%) (International Trade Centre, 2020). The economies of Ethiopia and Djibouti are highly interdependent via the Port of Djibouti, which traditionally constituted the only maritime outsource for the landlocked territory of Ethiopia. The recent peace between Ethiopia and Eritrea, with the resulting opportunity for Ethiopia to use Eritrea’s ports, may change this situation. Djibouti's heavy debt burden could harm trade relations with China, its main creditor (Coface).

Djibouti’s trade balance is structurally negative, as it does not export much except cattle and imports large amounts of petroleum products, food and capital goods. However, the country has a surplus in terms of exports in the service sector, largely due to port services fees for re-import and re-exports. The trade deficit was estimated at USD 142 million in 2019 (World Bank). In 2020, exports of goods amounted to USD 2.92 billion whereas imports reached USD 3.43 billion (WTO). Imports of goods and services decreased by 1% compared to 2019, whereas exports increased by 8% (World Bank). As economic activity recovered from the effects of the Covid-19 pandemic in 2021, imports of goods and services needed for infrastructure projects increased significantly (Coface). In 2022, exports (and re-exports) of goods and services are expected to pick up and help reduce the deficit (Coface).

To go further, check out our service Import Export Flows

Main Services

Source: United Nations Statistics Division, Latest Available Data

Commercial Policy

International Economic Cooperation

Member of World Trade Organisation
Member of Common Market for Eastern and Southern Africa (COMESA);
Member of African Union;
Member of Community of Sahel-Saharan States (CEN-SAD;
Member of Inter-governmental Authority on Development (IGAD).

Assessment of Commercial Policy

Country’s commercial policy

Average Customs Duty (Excluding Agricultural Products)

Djibouti applies the COMESA foreign ( Common Market for Eastern and Southern Africa) common tariff:
- No tax on capital goods and raw materials;
- 10% customs duty on intermediate products;
- 25% on finished products.

Trade Compliance

International Conventions

Member of World Trade Organisation
Party to the Kyoto Protocol
Party to the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora
Party to the Montreal Protocol on Substances That Deplete the Ozone Layer

International Economic Cooperation

Member of Common Market for Eastern and Southern Africa (COMESA);
Member of African Union;
Member of Community of Sahel-Saharan States (CEN-SAD;
Member of Inter-governmental Authority on Development (IGAD).

Party of the ATA Convention on Temporary Admissions and Use of the Carnets

No

As a Reminder, the ATA is a System Allowing the Free Movement of Goods Across Frontiers and Their Temporary Admission Into a Customs Territory With Relief From Duties and Taxes. The Goods Are Covered By a Single Document Known as the ATA Carnet That is Secured By an International Guarantee System.

Party of the TIR Convention

No

As a Reminder, the TIR Convention and its Transit Regime Contribute to the Facilitation of International Transport, Especially International Road Transport, Not Only in Europe and the Middle East, But Also in Other Parts of the World, Such as Africa and Latin America.
The UNCTAD Website Allows You to Read the TIR Convention, See the List of Member Countries And to Find Further Information.

Useful Resources

Djibouti Customs

National Organisation of Intellectual Property

The Djibouti Office of Industrial and Commercial Property (ODPIC), Ministry of Trade and Industry

 

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Latest Update: February 2023