Djibouti
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About Djibouti
Djibouti is a small country located in the Horn of Africa, bordered by Eritrea, Ethiopia, Somalia, and the Red Sea and Gulf of Aden, covering an area of approximately 23,200 square kilometers. As of 2025, Djibouti has a population of over 1 million, with Arabic and French as official languages. The country features mostly desert terrain with volcanic plateaus and coastal plains, experiencing an extremely hot and arid climate. Djibouti City serves as the capital.
Djibouti’s economy is based on its strategic location at the entrance to the Red Sea, one of the world’s busiest shipping routes. The country hosts multiple foreign military bases, including US, French, Chinese, and Japanese installations, which provide significant rental income. Port services, logistics, and transportation are key economic sectors, with the country serving as Ethiopia’s primary maritime gateway. Djibouti is investing in infrastructure and special economic zones to position itself as a regional logistics and trade hub.
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Economic Overview
food import-dependent Horn of Africa economy driven by various national military bases and port-based trade; fairly resilient from COVID-19 disruptions; major re-exporter; increasing Ethiopian and Chinese trade relations; investing in infrastructure