Ambassador Doualeh on how Djibouti plans to leverage opportunities in the AfCFTA

Djibouti, a small but strategically positioned nation in the Horn of Africa, is making significant strides in leveraging economic opportunities, particularly in the context of the African Continental Free Trade Agreement (AfCFTA). CNBC Africa recently engaged in a conversation with Mohamed Siad Doualeh, Djibouti's Ambassador to the United States, shedding light on various aspects of the country's economic landscape. One of the key topics discussed was the impact of the Sudan conflict on the region and Djibouti's trade relations with the United States. Ambassador Doualeh emphasized the profound cost of conflicts in the Horn of Africa, highlighting that while it's challenging to quantify, the economic implications are substantial. He underscored the importance of African nations working together to address such challenges and drive regional stability and economic growth. When it comes to trade relations with the U.S., Ambassador Doualeh acknowledged the longstanding partnership between Djibouti and the United States. However, he noted that efforts to enhance economic ties have faced hurdles, despite sustained outreach to American investors. The Ambassador expressed optimism following the U.S.-Africa summit in December 2022, signaling a positive shift in perceptions towards African investment opportunities. The discussion also touched on foreign direct investment (FDI) in Djibouti, with the Ambassador outlining the country's strategic focus on key sectors such as tourism, transport, communication, telecommunications, financial services, and renewable energy. Djibouti has been successful in attracting FDI from various regions and is committed to further expanding investment inflows. Moreover, Djibouti's recent appointment as the chair of the Intergovernmental Authority on Development (IGAD) underscores its expertise in peace and mediation efforts. Having played a vital role in facilitating peace agreements in countries like Somalia and Sudan, Djibouti brings valuable experience to the table in addressing regional security challenges. As the conversation shifted to the AfCFTA, Ambassador Doualeh highlighted Djibouti's proactive stance in preparing for the agreement's implementation. With a focus on boosting intra-African trade, Djibouti has identified key sectors and invested in infrastructure, including world-class ports, to facilitate trade flows. The Ambassador emphasized that successful implementation of the AfCFTA could be transformative, potentially lifting millions of Africans out of poverty. In addressing challenges related to harmonizing trade laws within the AfCFTA framework, Assistant Secretary Robinson emphasized the need for capacity building and structural reforms at national and regional levels. Leveraging expertise from organizations like the World Customs Organization, countries like Djibouti are working towards aligning trade laws to maximize the benefits of the free trade agreement. Overall, Djibouti's strategic positioning in the Horn of Africa, coupled with its proactive approach towards economic development and regional cooperation, indicates a promising trajectory for the nation. By capitalizing on opportunities presented by initiatives like the AfCFTA and fostering collaborative partnerships, Djibouti aims to drive sustainable growth and contribute to the economic advancement of the region.