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Horn of Africa's Djibouti dreams of becoming 'new Dubai'
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2015-05-24 14:28
Djibouti - For years the Horn of Africa nation Djibouti was seen by
foreign powers as a far-flung military outpost overlooking the Gulf of
Aden.
Now the strategic port wants to capitalise on its key position on one
of the world's busiest shipping lanes, the gateway to the Suez Canal.
Djibouti offers an African base across from the Arabian Peninsula at
the crossroads for cargo traffic between Asia and Europe.
It may be a tiny country of around 850 000 people, but it has a bold
ambition to become the commercial hub of eastern Africa, building on
its role as the main port for landlocked Ethiopia, Africa's second
most populous country.
To achieve that the former French colony has embarked on a series of
infrastructure projects expected to cost some $14bn.
Offshore from the historic Djibouti city, the waters are crowded with
a mix of hulking warships, giant container cargo vessels and the
traditional wooden fishing dhows that have plied the seas here for
centuries.
But a short drive away, Chinese workers are busy building a giant new
terminal dedicated to container ships from Asia.
Work is concentrated on the first of six new specialised docking
terminals - each one focusing on different commodities including
minerals, livestock, oil and gas - to add to the two terminals already
in operation.
'A Dubai, even Singapore!'
"More and more shipping lines are interested in Djibouti, we are now
making the way to be a Dubai, even Singapore!" said Suleiman Ahmed, a
senior executive at Doraleh container terminal.
Cargo trade is booming. It has increased between 6-10% each year, with
Djibouti enjoying growth partly because other regional ports are
struggling.
Kenya's port city of Mombasa is already overstretched, while the
secretive Red Sea state of Eritrea sees little if any traffic.
And Yemen's once key port of Aden - just across the Gulf of Aden from
Djibouti - is now a war zone.
"Mombasa is congested, Eritrea is not a welcoming country, but
Djibouti is a strategic and safe location - we rely on it," Ahmed
said.
In a volatile region, Djibouti hopes to build a reputation of
stability and security.
It hosts several foreign military bases, including Camp Lemonnier, the
US military headquarters on the continent used for covert, anti-terror
and other operations in Yemen, Somalia and elsewhere across Africa.
France and Japan also have bases in Djibouti, which has been used by
European and other international navies as a base in the fight against
piracy from neighbouring Somalia.
Earlier this month, President Ismail Omar Guelleh told AFP that
"discussions are ongoing," with China concerning a potential military
base, saying Beijing's presence would be "welcome".
Djibouti now wants to position itself as the gateway for Asia into Africa.
"From Egypt to South Africa, the eastern coast of Africa has only nine
coastal countries," said Abubaker Omar Hadi, chairperson of Djibouti
Ports and Free Zones Authority, waving his hand over a map of the
continent on the wall of his office.
"This has created 10 landlocked countries, 400 million people who have
no access to the sea. They are the ones we want to serve."
Big Chinese money
For now, Djibouti mainly serves Ethiopia's 94 million consumers, but
the ambition of Djibouti extends to the entire African continent.
As well as its massive port expansion, Djibouti wants to add two new
airports, a modern railway and build industrial areas.
At present, the country's small airport sees French Mirage fighter
jets share its one runway with civilian aircraft. But the government
plans to replace that with an international airport with a capacity of
1.5 million passengers annually, some 25km from Djibouti city.
A total of 14 infrastructure projects are planned in Djibouti
totalling some $14.4bn, mainly financed by Chinese banks.
But some are wary of such huge investments for a country with less
than a million people.
"There was no market research and parliament was never consulted,"
said opposition lawmaker Doualeh Egueh Ofleh, who said he was worried
about the financial risk the projects could pose.
"When we take the loans from the World Bank and Western institutions,
there was some control... now with the Chinese, we take all possible
loans for all projects without any control," he added, predicting
Beijing would control the country's infrastructure if Djibouti failed
to repay its debts.
But Djibouti's government is betting on strong African economic growth
to recoup the investment.
"Even before Dubai, Singapore and Hong Kong, the economic and maritime
hubs in the region were Aden and Djibouti," says port authority chief
Abubaker Omar Hadi.
"We know what to do to regain our place."
AFP
Received on Sun May 24 2015 - 10:28:28 EDT