Djibouti

Djibouti’s economic growth is hindered by a rapidly expanding workforce that is poorly matched to the economic needs of the country, resulting in high unemployment, and a lack of qualified applicants for jobs in certain sectors. Other obstacles to growth include high electricity costs and chronic water shortages, poor health indicators, food insecurity, and governance challenges. U.S. assistance supports education, health, workforce development, renewable energy, and civil society development.

Djibouti is eligible for preferential trade benefits under the African Growth and Opportunity Act. Djibouti hosts modern port facilities, which enable the growth of the logistics and services sector. The Government of Djibouti plans to turn Djibouti into a major commercial and shipping hub for East Africa. U.S. exports to Djibouti include vegetable oil, wheat, machinery, and foodstuffs. U.S. imports typically transit Djibouti from origin countries farther inland such as Ethiopia. These imports include coffee, vegetables, perfumery, and cosmetics. Additionally, Djibouti’s port serves landlocked Ethiopia, which receives substantial U.S. food aid. The U.S. has signed a trade and investment framework agreement with the Common Market for Eastern and Southern Africa, of which Djibouti is a member.