Djibouti has announced embarking on several mega infrastructure projects with a total investment of $9.8 billion.
The cost of the projects is six times more than the tiny eastern Africa country's Gross Domestic Products (GDP).
Djibouti is currently constructing $804 million multi-purpose and three specialized ports to be dedicated for export of livestock, and 4 million tons of potash export per year from Ethiopia and 6 million tons of industrial salt annually from Djibouti.
"Out of the $9 billion total investments for the 14 mega projects, we have already secured 58 per cent funding," Mr Abubaker Mohamed Hadi, the Chairman of the Djibouti Ports and Free Trade Zone Authority (DPFTZA), told visiting journalists from Ethiopia.
The funds, he explained, are from China Exim Bank and the 23.5 shareholder of DPFTZA, China Merchants and other financers.
New airports
Currently, most of Ethiopia's $13 billion import and $3 billion export goods come and exit through Djibouti port.
In addition to Ethiopia, which has become a major client of the Djibouti port following the 1998 Ethiopia-Eritrea War, Djibouti also plans to expand its services to South Sudan.
"...Of the 17 landlocked countries in Africa, 10 are in our region," Mr Hadi said, explaining the prudence of investing in the mega infrastructure projects.
The other mega projects in the country with less than one million people, include new airports, national shipping company and an airline, crude oil terminal, development of business districts and $3 billion natural gas refinery.
The $525 million Doraleh Multipurpose Port is expected to be completed in the two years.
When complete, the old Port of Djibouti will be converted to a business district, according to Mr Hadi.
Mr Hadi further noted that the investment also took into considerations the connectivity plan of Africa and integration of the continent.
He indicated that Ethiopia's fast economic growth in recent years had helped Djibouti to grow by 5 per cent on average annually for the past five years.
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