Djibouti, country, Africa, Djibouti Political Geography

Related Category: Djibouti Political Geography

Djibouti's economy is based on a number of service activities associated with its strategic location and its position as a free-trade zone. It is a major port for NE Africa, as well as an international transshipment and refueling center. Otherwise, the nation is largely economically underdeveloped. Nomadic pastoralism is a chief occupation; goats, sheep, and camels are raised. Date palms are grown and there is a small fishing industry. Manufacturing is mainly limited to food processing and shipbuilding and repair. The city of Djibouti is the terminus of the Addis Ababa–Djibouti RR; it and the port were undergoing modernization in the late 1990s. The main exports are hides, cattle, and coffee (transshipped from Ethiopia). Djibouti imports transport equipment and petroleum, as well as most of its food and consumer goods; its economic development depends largely on foreign investment and aid. The main trading partners are France and other European Union countries, Ethiopia, Japan, Saudi Arabia, and Yemen.