Djibouti begins building China-funded FTZ

The construction on Djibouti Free Trade Zone started on Jan 16 in Djibouti City, capital of Djibouti in East Africa. It marked an important stride for the country in becoming a regional logistics center.

The FTZ, which covers an area of about 48 square kilometers, has an initial investment of US$347 million. 

The FTZ, which covers all major ports in Djibouti, will focus on four industry clusters, including logistics, trade and commerce, processing and manufacturing, and business services. Enterprises in the FTZ will enjoy preferential services in customs clearance, visas, business establishment, legal, tax, training and finance.

Djibouti President Ismail Omar Guelleh said at the groundbreaking ceremony that the FTZ will strengthen Djibouti’s role as a corridor connecting Africa with the Middle East, Europe and Asia. He believes that the FTZ will generate an unprecedented driving force for the country’s economic growth.

Hu Jianhua, vice general manager of China Merchants Group, said the FTZ will showcase Djibouti’s geographic strength and the potential of its ports, which will attract more talent, capital and factories to make the country a regional shipping center, logistics center and financial center.

The FTZ project will be finished by the end of this year, Hu added.

Djibouti is located in the northeastern corner of Africa and on the west bank of the Aden Gulf. It is a key transfer station for trade among Africa, Asia and Europe.