Djibouti, 26 October 2026 – The UN Economic Commission for Africa (ECA), through its Office for Eastern Africa, in partnership with the Ministry of Economy and Finance in charge of Industry of the Republic of Djibouti, today presented and launched a study examining the impact of the African Continental Free Trade Area (AfCFTA) on Djibouti's industrialization and economic diversification.
The study provides a comprehensive assessment of how Djibouti can leverage the opportunities offered by the AfCFTA to accelerate structural transformation, expand industrial production and strengthen its participation in regional and continental value chains. The findings come at a time when Djibouti is seeking to diversify an economy that has traditionally been driven by transport, logistics and port services.
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, increasing from US$1.34 billion in 2010 to US$4.15 billion in 2025, while GDP per capita rose from US$1,605 to US$3,501 during the same period.
He 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.
The study's findings suggest that full implementation of the AfCFTA could increase Djibouti's total exports by approximately 7.1 per cent and raise overall national production by 4.8 per cent. Some of the strongest gains are expected in manufacturing industries, food processing products and construction products with production expanding sometimes by 10% or more.
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 provides new insights into Djibouti's industrial landscape. It identifies 23 active industrial enterprises, including 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.
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 study 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 report emphasizes that targeted measures to support women entrepreneurs and workers will be critical to ensuring that the benefits of the AfCFTA are broadly shared.
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.
Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org
