Success Stories

Djibouti case

Identifying Djibouti's Potential from Lens of New Structural Economics and Implications on Nation and Free Trade Industrial Zone

We conducted National Industrial Planning and Free Trade Zone and Industrial Park implementation plan for the Government of Djibouti, in collaboration with CNSE and FCSSC. This is a highly strategic project with potential for high impact as well as a way to pioneer a new consulting approach in the area of international development and China-Africa collaboration.
Djibouti and other African countries had similar income level as Asian countries such as Singapore 60 years ago. But during this time, Singapore's per capita GDP, for example, has increased from 2,219 international dollar in 1950 to 28,107 international dollars in 2008, measured in 1990 purchasing power parity, whereas Djibouti's per capita GDP dropped from 1,500 to 1,254 in the same period. While both have similar natural endowment, such as a strategic location and important port, Singapore did differently from Djibouti as it aggressively developed different industries in addition to its port via different industrial policies. Singapore's diversification and advanced industrial development happened as a result.  

Djibouti has started to diversify its economy, as it needs to create employment and increase income for its 900,000 population, which will not be satisfied by a port alone. Our project is to help Djibouti develop industrialization by proposing advise on investment incentives, and optimize its industrial zone design, to ultimately create large amounts of jobs in the country.

This project starts from the view of New Structural Economics and Djibouti's Endowment Structure, analyze current context and deliver a report on applying the Growth Identification and Facilitation Framework (GIFF) to the case of Djibouti, which provides advice to both the Djibouti government and the Chinese zone developer, as well as approach in facilitating investment promotion for Djibouti via attracting Chinese investors, and Proposal on Existing Free Trade Zone Industrial Park and Potential Chinese Financing and Collaboration.