Information about Djibouti
The French Territory of the Afars and the Issas became Djibouti in 1977. Hassan Gouled APTIDON installed an authoritarian one-party state and proceeded to serve as president until 1999. Unrest among the Afar minority during the 1990s led to a civil war that ended in 2001 with a peace accord between Afar rebels and the Somali Issa-dominated government. In 1999, Djibouti's first multiparty presidential elections resulted in the election of Ismail Omar GUELLEH as president; he was reelected to a second term in 2005 and extended his tenure in office via a constitutional amendment, which allowed him to begin a third term in 2011. Djibouti occupies a strategic geographic location at the intersection of the Red Sea and the Gulf of Aden and serves as an important shipping portal for goods entering and leaving the east African highlands and transshipments between Europe, the Middle East, and Asia. The government holds longstanding ties to France, which maintains a significant military presence in the country, and has strong ties with the United States. Djibouti hosts several thousand members of US armed services at US-run Camp Lemonnier.
Djibouti's economy is based on service activities connected with the country's strategic location as a deepwater port on the Red Sea. Three-fourths of Djibouti's inhabitants live in the capital city; the remainder are mostly nomadic herders. Scant rainfall limits crop production to small quantities of fruits and vegetables, and most food must be imported. Djibouti provides services as both a transit port for the region and an international transshipment and refueling center. Imports, exports, and re-exports - primarily of coffee from landlocked neighbor Ethiopia - represent 70% of port activity at Djibouti's container terminal. Djibouti has few natural resources and little industry. The nation is, therefore, heavily dependent on foreign assistance to help support its balance of payments and to finance development projects. An unemployment rate of nearly 60% continues to be a major problem. While inflation is not a concern, due to the fixed tie of the Djiboutian franc to the US dollar, the artificially high value of the Djiboutian franc adversely affects Djibouti's balance of payments. Djibouti holds foreign reserves amounting to less than six months of import coverage. Djibouti has experienced relatively minimal impact from the global economic downturn, but its reliance on diesel-generated electricity and imported food leave average consumers vulnerable to global price shocks. President GUELLEH in 2013 told international investors that Djibouti’s development plan is to increase its prominence in financial and communication sectors.
Issues in Djibouti
Djibouti maintains economic ties and border accords with "Somaliland" leadership while maintaining some political ties to various factions in Somalia; Kuwait is chief investor in the 2008 restoration and upgrade of the Ethiopian-Djibouti rail link; in 2008, Eritrean troops moved across the border on Ras Doumera peninsula and occupied Doumera Island with undefined sovereignty in the Red Sea
Refugees and internally displaced persons:
refugees (country of origin):
19,168 (Somalia) (2014)
Trafficking in persons:
Djibouti is a transit, source, and destination country for men, women, and children subjected to forced labor and sex trafficking; economic migrants from East Africa en route to Yemen and other Middle East locations are vulnerable to exploitation in Djibouti; some woman and girls may be forced into domestic servitude or prostitution after reaching Djibouti City, the Ethiopian-Djiboutian trucking corridor, or Obock - the main crossing point into Yemen; Djiboutian and foreign children may be forced to beg, to work as domestic servants, or to commit theft and other petty crimes
Tier 2 Watch List - Djibouti does not fully comply with the minimum standards for the elimination of trafficking; however, it is making significant efforts to do so; outside of child prostitution, the government fails to investigate or prosecute any other trafficking offenses, including those allegedly committed by complicit officials; it has made no attempt to implement the protection or prevention components of its anti-trafficking law, and its working group on trafficking was inactive in 2012; a draft national action plan against human trafficking remains incomplete (2013)