Our success is built on our cardinal values

Djibouti continues to defy easy classification. A small state minus any natural resources – bar its geostrategic location at the entrance of the Red Sea – and at the centre of one of the most volatile regions of the world, it has evolved into one of the most politically and economically stable countries in Africa, Credit for pulling off a minor miracle must go to its political leadership, especially long-serving President Ismaïl Omar Guelleh who was re-elected in 2021. 

Applying unerring diplomatic skills, allied to his deep understanding of both domestic and international dynamics, he and his team have steered the country past regional turmoil and on a path of sustained growth – estimated by the World Bank to reach 7% this year. 

With a vigorous campaign to modernise and streamline the bureaucracy, while making the country an attractive destination for investments, the prognosis over the next decade is very good – and take Djibouti much further along its ambition to become the Singapore of Africa.

Djibouti’s candidate, Mahmood Ali Youssef, has been elected as chair of the African Union Commission. What does this appointment mean for your country? And what lessons can we learn from your country for the continent in terms of peace, diplomacy and economic transformation?

The election of Djibouti’s candidate for the chairmanship of the African Union Commission is undoubtedly first and foremost a just reward for the ethics, traditions and diplomatic practices to which our country has always subscribed. 

This appointment reflects our country’s tradition of neutrality in the internal affairs of third powers, its ethics of only entering into partnerships based on shared interests, its commitment to resolving conflicts through dialogue and its continuous propensity to offer a platform for discussions to resolve political disputes that erupt in the region and the continent. All of this has clearly been rewarded by the recent election of our candidate as head of the AU Commission. As for the lesson that the continent can learn from the distinction accorded to our country, it is to recognise that the aura, the reputation and the diplomatic influence of a country are not necessarily linked to its size and scope. They are the result of the judicious nature of the deep convictions that serve as the cornerstone and cardinal values of its diplomatic action.

We are witnessing the rise of middle powers, new high-growth economies, a weakened Europe and the United States changing the rules of the game. What does this mean for Djibouti in terms of medium- and long-term foreign partnerships?

It is true that one of the profound transformations characterising our world is the fact that it is increasingly marked by a geopolitical upheaval. 

The world order established in the wake of the Second World War, which for a long time guaranteed a certain balance based on multilateralism, is clearly disintegrating under the effect of triumphalist partnerships based on the immediate interests of states and not on the construction of a society of nations. 

The return of unbridled nationalism in several regions of the world and the emergence of new kinds of challenges in a context of depletion and degradation of available resources; all this seems to be leading the nations of the world to diplomatic practices exclusively motivated by greed. 

And in this new situation, Djibouti, like any other country, is forced to rely first and foremost on itself. This means that it must meet all of its needs and development from intrinsic provisions specific to it. 

To this end, the widely endorsed policy of expenditure control is complemented by the virtues of a sovereign wealth fund set up to guarantee the country viable sources of financing for projects defined for its development. 

As the development of Djibouti is also partly linked to trade and cooperation with other countries, we will choose our partners based on their ability to subscribe to relationships founded on respect for the sovereignty of states and the search for shared gains.

There have been disagreements over climate finance and the United States has withdrawn from the Paris Agreement. What should Africa’s position be on adapting to climate change, given the threats posed by rising sea levels, droughts, floods and cyclones?

It is true that climate change has for some time been one of the main issues on the world’s agenda. The consequences are such that it is, in turn, the cause of highly damaging natural disasters including droughts, floods, extreme heat, land erosion and more. 

The phenomenon of climate change not only brings with it the dangerous risk of humanity having to face increasingly high temperatures, it also leads to a deterioration of the economic conditions and sustenance in the life of contemporary societies. 

The consequences of climate change are all the more severe in Africa because it is this continent that bears the brunt of its negative effects, despite the fact that it is far from being among the world’s main greenhouse gas emitters. 

In the face of the climate emergency Africa is obliged to acquire clean energy. This is an issue of energy adaptation requiring Africa to gain access to significant funds – funds that it is finding difficult to raise, due to capital shortages and the increasingly strict conditionalities imposed by multilateral financial institutions. 

In this specific context, it is up to Africa to ensure its energy adaptation through investments obtained from the compensation fund that, based on the principle of active international solidarity around climate change, was pledged by developed nations to developing ones, particularly African countries. The $100bn fund pledged must move from intention and agreement to reality. And for that to happen, Africa must continue to use its unified advocacy to ensure that these commitments become binding.

The issue of military bases always comes up when we talk about Djibouti. Several leases are currently being renegotiated. How can you obtain better agreements financially and militarily so that Djibouti gets its fair share and is able to safeguard the country’s sovereignty?

The choice of our country to house military bases belonging to the world’s major powers is above all the result of a combination of factors. 

The political stability that has continually characterised our country; its prominent geographical position at the crossroads of several economic regions; its proximity to strategic shipping lanes for world trade; and its privileged position for monitoring, regulating and acting on security issues of international scope: all these are among the reasons behind the determination of the world’s major powers to acquire bases in our country. These are the factors behind the influx of major military powers into our country, and not because we were seeking to capitalise on our geostrategic position by renting out bases. 

Moreover, proof that the pecuniary aspect is far from being decisive for Djibouti in the hosting and accommodation of these bases is that their income does not even reach 10% of our budget. But we fully support these partnerships for other strategic reasons, in particular their ability to provide greater prevention, regulation and suppression of the cross-border dangers particularly prevalent in this part of the world; and, consequently, their propensity to work towards increasing the level of stability in our region.

Talking of stability, there is a little more stability in the Horn of Africa but the situation is still precarious. What is your reading of the region and what opportunities might emerge in the event of agreements in Sudan, Ethiopia, Eritrea and elsewhere?

It is true that our region, the Horn of Africa, has long been characterised by chronic instability and repeated conflicts. The Republic of Djibouti has always endeavoured to work towards the stabilisation of this part of the world – not through any kind of paternalism, but through the principal of neutrality in the internal affairs of neighbouring states and by providing a platform for discussion for those involved in crises that break out in the countries of the region. 

I must emphasise that our constant commitment to peace in the region is founded on our firm conviction that it is impossible to achieve successful economic integration in this part of the world without first establishing lasting stability throughout the Horn of Africa. 

Djibouti is all the more determined to act for peacemaking of its home region, the Horn of Africa, since it has all the assets needed for development but the growth and influence of these are dependent on establishing lasting stability once and for all.

How do you intend to accelerate the economic diversification of Djibouti beyond the ports? How do you see the role of the government and that of the private sector in this transformation?

The state has played an essential role in the development of strategic infrastructures (ports, railways, telecommunications, energy), making massive investments. The next phase should evolve towards reforming public enterprises to increase efficiency through openness and targeted sectoral policies to develop complementary sectors such as logistics, financial services, renewable energy, light industry, the digital economy and tourism. A dynamic and robust private sector is fundamental for employment and competitiveness. Djibouti must capitalise on its free zones to attract manufacturing and technology-based industries. It must use its exceptional digital connectivity to develop innovative services and its geothermal, solar and wind power potential to diversify the economy and reduce energy dependence and costs.

Despite regional and international crises and the Covid pandemic, we have by any standard and metric managed to provide economic stability. Maintaining macroeconomic equilibrium and resilience remains central to our government policy and targets. We pay special attention to monitoring and maintaining prudent debt management and we are doing so through diversification of financing sources.

We are also encouraged by progress made with the African Continental Free Trade Agreement, as an increase in regional economic integration will help all countries benefit from the opportunities in the African market and will help us strengthen ties with Ethiopia and many markets beyond.

Which success stories would you like to see replicated and scaled up?

Djibouti has made significant progress over the past 20 years and has unique strategic assets, many of which I have mentioned. The next stage is based on economic transformation centred on a dynamic private sector, increased diversification and strengthened economic inclusion.

Investors from China, Malaysia, Saudi Arabia and many other countries have visited Djibouti to explore investment opportunities. Are these visits leading to concrete results?

These discussions with investors enable us to promote our geostrategic position on international shipping routes, strengthen Djibouti as a key regional and continental logistics platform and encourage foreign direct investment that will lead to tangible results. All of them recognise this.

What about the Vision 2035 plan, which you are now halfway through? Are you on the right track? 

Since 2015 Djibouti has been following a development strategy, aligned with Vision 2035. The first plan (2015-2019) enabled the construction of important modern infrastructure and provided the foundations for our strong economic performance. The second plan (2020-2024) tackled social challenges and inequalities and focused on resilience in the face of climatic and economic shocks. An overall review is underway to evaluate the results and guide the third plan (2025-2030).

The young sovereign wealth fund (the FSD) launched the Djibouti Forum last year. What message would you like to send to investors on the occasion of the second edition?

The Forum must become the meeting place for major opportunities, achievements and successes for all sectors of our economy, as well as a platform for national and international investors. I am convinced that this year’s Forum and those to come will be a catalyst for strategic discussions on reforms and improving the business environment.

Are you concerned about the advent of artificial intelligence and the risk that Africa will once again be left behind? 

Artificial intelligence represents both a challenge and an opportunity for Africa. In Djibouti we are aware of the risks associated with automation and the changing labour market, particularly for young people. 

However, we also see AI as a considerable lever for development. By investing in training, innovation and digital infrastructure, Africa can not only catch up, but also create a new economic paradigm and social opportunities. The important thing here is to anticipate these transformations and to support our young people towards the jobs of tomorrow.