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Djibouti on Thursday launched the first phase of Africa's largest free trade zone, seeking to capitalize on its strategic position on one of the busiest trade routes in the world.
President Ismael Omar Guelleh praised The construction project of the Horn of Africa, located at the mouth of the Red Sea and south of the Suez Cbad, unveiled in 2017 three new ports and a Somali president, Mohamed Abdullahi Mohamed, called the free trade zone a "victory for East Africa". the ceremony of Ethiopian Prime Minister Abiy Ahmed and President Paul Kagame of Rwanda
The President of Sudan Omar al-Bashir, wanted by the International Criminal Court for crimes against humanity and war crimes The zone, which is connected to Djibouti's main ports, aims at diversifying the economy, creating new jobs and attracting foreign investment through tax-free incentives and full logistical support.
Thursday includes a site of 240 hectares (593 acres).
The $ 3.5 billion initiative, which is expected to be completed in 10 years, will expand to 4,800 hectares – the continent's largest free trade area.
The project hopes to see foreign companies establish manufacturing plants in the area, adding value to the products instead of just importing and exporting raw materials.
"The volume of goods traveling to East Africa is steadily increasing.Every time a product arrives on the continent without being processed, it is a missed opportunity for Africa, "said Aboubaker Omar Hadi, president of the Ports Authority and Free Zones
– Chinese Debt –
A row of Djiboutian and Chinese flags fluttered coast next to the freshly painted bright yellow walls surrounding the expansive project – a symbol of the close ties of the small country to the Asian giant whose loans have financed its growth of ultra-fast infrastructure.
Djibouti – which is also the site of the only Chinese military base abroad – is an essential part of the Beijing "Belt and Road" global infrastructure initiative along the way. which was nicknamed "Maritime Silk Road."
The countries of Asia and Africa have tremendous money to develop their infrastructure and facilitate trade.
However, last year, Sri Lanka was forced to hand over majority control of its port from Hambantota to China after the International Monetary Fund pulled the alarm on the alarm. increase of the public debt of Djibouti from 50% of the GDP in 2014 to 85% in 2017
The Research Initiative on China in Africa, based in the United States, estimates the Djiboutian debt to China at 1 , $ 3 billion.
In an interview with AFP, the chief of Hadi ports exchanged concerns about the profitability of Djibouti. its ports and the new railway linking its capital to Addis Ababa, which started operating in January.
"We are not at all concerned about our debt ratio, it is not the taxpayers who will repay this debt, it is those who use the services: the ships, the traders", he says
Authorities like to say that without its ports, the arid and solar nation would not exist, Guelleh said that in its pilot phase, the free trade zone should boost GDP by 11%, a first group of 21 people
The area will be managed by Djibouti as the majority shareholder with three Chinese companies: the China Merchants Group, the Autonomous Port of Dalian and the big data company IZP.
Djibouti is located at the southern entrance to the Red Sea, at the intersection of major international shipping companies connecting Asia, Africa and Europe
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