Djibouti 30 years of independence

The Republic of Djibouti celebrates thirty years of independence on June 27th 2007. This is one of the smallest nations in Africa but has a big heart not only in terms of its domestic peace but also in regard to its near perfect foreign relations.
It is perhaps Ethiopia’s most important neighbor and culturally–woven out of the same cloth, so to speak.

H.E. Ambassador Ibrahim Mohamed Kamil, a career diplomat, has been representing his country in Ethiopia since 2001. He was kind enough to give CAPITAL’s Teguest Yilma an exclusive interview in connection with the 30th anniversary of Djibouti’s independence. Excerpts follow:

Your Excellency, shall we begin with a description by yourself of the Djibouti of today? Djibouti is celebrating its 30th independence anniversary on 27th June. What are according to you, the major achievements of the last 30 years?

H.E. Mr. Ibrahim Mohamed Kamil: Thank you for hosting me on Capital. It is true that our country has 30 years of independence and we are about to celebrate this with our meagre resources. During the celebration we will look into what has been done and all that will be done in the future. As you know, Djibouti is a small country of 23,000 SqKm and 700,000 people. As for resources, we only have the service sector - no agriculture or other industry exists - and as such, it is the Port of Djibouti which acts as the engine of the economy and helps us to develop but also opens a door with our dear neighbour and friend - Ethiopia.
So the 30th anniversary shall be celebrated in Djibouti with friendly countries, invited guests and in a folkloric and festive atmosphere.
The achievements of the last 30 years include the port of Djibouti, the new Port of Doraleh - we are now investing on the second phase – which includes the container terminal and the Free Zone. All economic development of the Republic of Djibouti is based on a service economy. By this I mean that we need to have the tools and infrastructure so that those who use the port services will find it conducive.

How do you plan to finance the celebrations?

It will be financed with the national budget. And outside the nation all the chancelleries will celebrate it from their own finances with friends, diplomats, colleagues, and the Djiboutian community in those countries. The same will happen here in Ethiopia.

How large is the Djiboutian community in Ethiopia?

The Djiboutian community in Addis Ababa is not very significant. But there are some citizens in Dire Dawa and other regions. We do not have an exact figure of Djiboutians living here in Ethiopia as many come periodically.

At what stage of development are the longstanding Ethio-Djibouti relations?

We have two leaders of the same age and vision for Africa and their respective countries. PM Meles Zenawi strives for his country’s development and this is not an easy task. On our part, we have President Ismael Omar Guelleh, who also loves his country and works just like your PM on how to develop the condition of the people. This similar outlook for their respective countries, the personal friendship they maintain, and the direct communication made without interpreters and intermediaries, as they both speak Amharic, makes us very lucky here at the embassy because of the ease of communication. Any problem is solved within a few minutes between the two leaders.

President Ismael Guelleh is now into his second term. What would you say are his major achievements during his presidency?

In his mandate, he has focused on service oriented development. His vision was to render Djibouti a port that can attract investors. We have liberalized our economy by giving a management contract to Dubai Port World to manage all port infrastructure so as to be competitive and be in the best of conditions. DP World is also involved in the development of the Port, notably the construction of the Port of Doraleh, where all petroleum vessels dock, with an investment valued at 200 million dollars.
They have also built the Kempinski a world renowned hotel - the second phase of which is already launched. Hotel infrastructure is meant to attract tourists. There is also what we call the “marina”- for vessels coming from the Gulf, Yemen and the region to vacation in Djibouti by visiting the marvels of the Red Sea, Lac Assal and other sites that we would like to develop with friendly countries and foreign investors.
We have many other projects such as an oil refinery worth several million dollars that a Kuwaiti citizen is interested in developing. The refinery would allow imported crude to be refined and distributed in the region and in particular for Djibouti, Somalia and Ethiopia. This is another investment performed for the country but neighbouring countries also can benefit from such infrastructure. In the third phase of the port expansion program there is a free zone designed to store goods for distribution to land locked regions in Africa. This includes Ethiopia, Burundi, Rwanda, and Uganda.
The Ethio-Djibouti railway is very important too. The EU has assisted us in renovating it and Ethiopia and Djibouti have signed a management contract with a South African company so as to be able to fully utilize the railway.
We also have the interconnection of utilities. Djibouti does not have hydro-electricity potential. So we need a source of energy that does not cost too much for investors. Djiboutian and Ethiopian experts thanks to AfDB financing are working together to establish a connected grid from Ethiopia to Djibouti. So in some two years electricity will be coming from Ethiopia, which will be very welcome, especially during the hot summer season.
With our Ethiopian friends we also have plans for a telephone system, using modern fiber optics.
There is also a huge investment by a Saudi company involving a bridge that will connect Yemen to the northern part of our country. It will span 28 Km and cost several tens of billions of dollars (50 to 70 billion dollars). The signing of the contract is in the pipeline.
Up to 100,000 employees will be working on this architectural wonder, which will be quite unique in the world. We believe that in the next 5 years Djibouti will be transformed positively, but this transformation will only be possible if we have peace in the region.
We need peace in Somalia, between Ethiopia and Eritrea, we need for Ethiopia to continue to develop and transforms itself. We need regional cooperation. It is not enough that Djibouti be in good health with the rest of the region in trouble.
No, we wish for all in the region to have a chance for peace and security. Otherwise, we will all lose in our administration of the horn of Africa.

Because when you construct something, it is first for the country – for Djibouti, but our investors ogle the hinterland which is Ethiopia, a nation of nearly 80 million. We must attract foreign investors by telling them that the Horn is a large interior market. Investors do not come just for Djibouti but also for the larger country behind. Hence, we must ensure that this country grows, stabilizes and that peace reigns in the region.

With regards to the fiber optic submarine line project, rumours are that it is on hold now due to differences between the two countries.

Actually there are no disagreements between the two countries. However there are differences between their respective technicians. In such cases, it is essential that the political leaders decide upon the matter. The reason for the disagreement on both sides relates to cost sharing. But each side, taking into consideration the interest of the region, is making an effort to realize this project. I am very sure that it will be finalized very soon.

The man responsible for launching the country onto such a great developmental momentum, President Ismael Omar Guelleh, will soon complete his second term. Will he stand for a third term?

President Gulleh’s mandate runs up to 2011 so he will be in power till then, God willing. Article 23 of our constitution states that one cannot run for a third term. However, a constitution can be amended. It is not the Koran. So time will tell and we will see if it is necessary to change the relevant article.

What agreements (cultural exchanges, trade other treaties etc.) exist between Ethiopia and Djibouti?

We have so many common points and accords that it is difficult to enumerate the treaties we have conducted between us. We are basically the same people, but in two different countries. All that Ethiopia requires for its growth in terms of a sea outlet, investment in Djibouti, access to the Free Zone, activities related to exploitation of natural gas, and other requirements are satisfied without restrictions.
Of course there are some technical difficulties, because of the bureaucracies in both countries, but there is great dynamism at the highest level based on a common public interest.
We have passed in parliament accords for among others, “through bill of lading” that will allow Ethiopian importers to transit their goods as fast as possible. However there are many other issues that we deal on a daily basis without formal written agreements.

What are the prospects for private sector investment for the nationals of the sisterly countries interested in investing in the other country? Recently an investment and property holding agreement was signed between the two countries. Are there any Djiboutians who have already invested in Ethiopia?

Yes, we have signed and ratified agreements for investment in our respective countries. The opportunity now exists for Djiboutians to invest in Ethiopia on the same footing as Ethiopians. I really feel that the sky is the limit for the two countries economic relations. It must be said that it is a little more difficult to invest in Ethiopia than in Djibouti, because the investor would like to have a guaranty in terms of the existence of a foreign bank, the return of investment etc… However, we respect the economic policies that Ethiopia has put in place. But this does not prohibit Ethiopians from investing in Djibouti in any sector they wish to, be it infrastructure, hotels, tourism and others.

Djibouti does not prohibit anyone from investing as long as they respect the law of the land. Ethiopians have been investing since a very long time in various sectors, and they will continue to do so. You have Ethiopian restaurants, Ethiopian traders, etc…
And we hope that we will be able to invest here as well, as the law now allows us to, especially in the regions where we have many of our compatriots, such as in Dire Dawa and Afar.
Currently Djiboutians are evaluating investment prospects. There are some investors who plan to come shortly and meet with the Chamber of Commerce and the Minister of Trade and Industry, H.E. Mr. Girma Biru with whom we have very good relations. For now, especially in Addis Ababa, land is very expensive.

According to our latest data 9.9% of Djibouti’s imports are from Ethiopia while 5% of its exports are to Ethiopia. What items characterize this trade?

If the traders of both countries have confidence in the system that we have put in place, anything can be achieved. The investor always has this fear of not recovering his/ her investment. As soon as an investor is confident that investments are safe and secure and profits are assured, these trade figures will improve.

Djibouti imports vegetables, cattle and especially khat – over 10 tons everyday – for local consumption. Djibouti does not have an export capacity, as the only item exportable are fish. We also have sea salt, but Ethiopia also has now developed salt from Afdera.
But as I said, we have such compatibility that gradually our investors instead of looking towards Europe or Asia, will be attracted towards Africa - Ethiopia, Somalia… I think the mentality is changing and we will achieve something of great value.

How does Djibouti plan to maintain itself as the port of choice for incoming and outbound Ethiopian trade?

The first thing that we do is maintain quality of service, security of merchandise, quick delivery, insurance and assurance on goods and competitive pricing. In short, there is a quality of service that Djibouti strives to maintain, thanks to Dubai Port Authority which is really doing its best to serve the Ethiopian customers as best as it can.
Secondly, it is up to Ethiopian importers/exporters to make a choice, to decide which port is best. They are the one’s paying, and they should be able to decide which port offers quality service, and with a minimum of risk. As far as Djibouti is concerned, we should be listening to what these clients want and offer an impeccable, spotless service. In addition, the officials who manage the port have international experience as they administer many ports around the world.

The port of Djibouti has recently introduced a quarantine system for cattle exported mainly to Saudi Arabia. This system creates an added cost to the Ethiopian cattle exporter, who feels that it is unnecessary as medical checks are already done locally. What is your opinion regarding this?
When we introduced this quarantine system, it was a guaranty for the buyer. When the cattle pass through this quarantine, the buyer in Saudi Arabia, Dubai or Qatar or else where get a guaranty and assurance that the cattle are in good health. They require a certificate of guaranty, and this involves service so it is only natural that there is a price for the inspection work provided. We can always negotiate the price between the concerned ministries, but the quarantine is something that the Gulf buyers require from us – the Port of Djibouti.
I am not sure if there is a quarantine system here in Ethiopia.

There is no development with out peace. With regards to the situation in our region, and particularly that of Somalia and Eritrea, what are your opinion(s) in regard to bringing about lasting peace and reconciliation? What’s Djibouti’s position and possible role it can play in helping achieve regional peace?

In effect, whatever our good will and economic plans, unless there is sustained peace, stability and security, nothing can work. As I have said, PM Meles Zenawi and President Ismael O. Guelleh, both have the same vision for their respective countries. They want development but more importantly, the security of the region. This can come only from the willingness of everyone in the region. For instance Somalia, a brother country, has not had a stable government. First they were warlords, then the Islamic Court, now it is the TFG. We strongly wish peace for Somalia, and Djibouti has done much for national reconciliation. Former president Hassen Gulled had tried, then there was the Arta conference, and now a peace and reconciliation conference is planned in a month’s time in Mogadishu.

But I believe that the peace should come from the Somalis themselves, it is not by force or foreign intervention that we can find peace in Somalia. If the Somalis themselves are not convinced among themselves and for themselves, whatever the forces – American, African or otherwise - will not be able to achieve reconciliation.
Djibouti respects the Ethiopian position of intervention in Somalia, even if we do not approve of it. Unfortunately, we see that Ethiopia is getting ever deeply involved in Somalia and, the African forces that should have been there, except for Uganda, have not materialized.

On the issue of Eritrea, Djibouti is part of the African Union, of IGAD and COMESA. We wish for the two countries to discuss and find a solution. We are against anyone who refuses to dialogue. We do our best to emphasize this point of view of dialoguing, because we need a stable region.
We also require peace in Darfur - Sudan, a country which is a member of IGAD, COMESA and also of the Arab League. We have many common points, so that is why we say that we need to come together and the leaders must discuss among themselves. There should be tolerance as nobody owns the absolute truth. Only through dialogue can we work for our countries and region. Disparities that may crop up must be solved. However, if each refuses to open to dialogue, anything can happen. There are major risks that we are afraid of because we are a small country and we need peace all around us.

Today we are celebrating 30 years of independence, but we want now a vision for the next 30 years. We want everybody around us to benefit from all our projects. It is not enough that Djibouti be rich and prosperous while there is poverty around us. This is not our vision. So it is essential that nations find acceptable solutions to their divergence. And not only in this region but also on the African continent as a whole.

Soon we will discuss in Accra about the African Union, but this should not just be an empty slogan. We must start with regional steps. In the case of Somalia for instance there should be a non-exclusive intra-somalia discussion - a dialogue that does not exclude any stakeholders.

Will Djibouti participate in any particular way on the Ethiopian Millennium celebrations?

Djibouti will of course participate on this Ethiopian celebration. We do not have a precise agenda for the time being, but our president is conscious of the event, and he will be here himself for the festivities.

Any final message or comments you would like to convey?

The message I would like to pass is that Ethiopians have confidence in their leaders, as we are convinced in Djibouti that PM Meles strives for the development of his country, seeks peace and struggles against poverty. So they [Ethiopians] must have confidence in the future. If there is confidence and a responsibility of the leadership and the personalities that Ethiopia has today, I believe that there will be long term stability. The future is very promising. We have confidence in not only Ethiopia but also in our collective success in the region.