A new study by the UN Economic Commission for Africa (ECA), released in partnership with Djibouti’s Ministry of Economy and Finance in charge of Industry, has found that full implementation of the African Continental Free Trade Area (AfCFTA) could increase Djibouti’s total exports by approximately 7.1 per cent and raise overall national production by 4.8 per cent.
The study, presented and launched at an event in Djibouti, provides a comprehensive assessment of how the country can leverage the AfCFTA to accelerate structural transformation, expand industrial production and strengthen its participation in regional and continental value chains. Its findings come at a critical moment, as Djibouti seeks to diversify an economy traditionally driven by transport, logistics and port services.
According to the report, some of the most significant benefits are expected in manufacturing industries, food processing and construction products, where production could expand by 10 per cent or more. These projections underline the potential of continental integration to move Djibouti beyond its traditional reliance on port and logistics services and toward a more diversified, industry-driven economy.
Andrew Mold, Director of ECA’s Office for Eastern Africa, highlighted the country’s remarkable economic progress over the past decade. Djibouti’s real GDP has more than tripled, rising from US$1.34 billion in 2010 to US$4.15 billion in 2025, while GDP per capita increased from US$1,605 to US$3,501 over the same period.
Mold emphasized that the AfCFTA represents a significant opportunity to build on these achievements by fostering industrial development, expanding productive capacities and creating more and better jobs. He stressed, however, that adequate policies must be put in place to ensure that the benefits of economic growth and regional integration are shared by all segments of the population—particularly women and young people, who must be at the forefront of Africa’s transformation.
Speaking at the launch, José Barahona, United Nations Resident Coordinator in Djibouti, underscored the importance of economic diversification in strengthening resilience and creating sustainable livelihoods. He noted that the study demonstrates how regional integration can serve as a catalyst for industrialization, innovation and inclusive growth, particularly for young people and entrepreneurs.
The study also offers new insights into Djibouti’s industrial landscape. It identifies 23 active industrial enterprises—14 national companies and 9 foreign-owned firms—which collectively employ 892 workers. While the sector remains relatively small, manufacturing value added per capita has nearly tripled since 2011, reflecting growing productive potential and the positive impact of ongoing investments in infrastructure, logistics and connectivity.
The report further highlights the important role of women in Djibouti’s economy. Women hold ownership stakes in 32.3 per cent of enterprises in the country—above the Sub-Saharan African average—while women account for nearly one-third of permanent full-time employees. The study emphasizes that targeted measures to support women entrepreneurs and workers will be critical to ensuring that AfCFTA benefits are broadly shared.
In his keynote address, Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry, reaffirmed the Government’s commitment to implementing policies that will enable businesses to benefit from the AfCFTA. He stressed that Djibouti is uniquely positioned to capitalize on continental integration thanks to its strategic location at the crossroads of Africa, the Middle East and Asia, as well as its world-class port infrastructure and transport networks.
The meeting concluded with a call for strengthened collaboration between government institutions, the private sector, development partners and civil society to translate the study’s recommendations into concrete actions. Participants agreed that improving industrial competitiveness, facilitating access to finance, promoting skills development and supporting export-oriented industries will be essential to maximizing the benefits of the AfCFTA and advancing Djibouti’s long-term development ambitions.
