The Damerjog Industrial Development Free Trade Zone in Djibouti is poised for unprecedented growth as a series of development projects supported by a $120-million financing facility from the African Export-Import Bank (Afreximbank) begin to take shape. This major financial boost signals a significant step forward in the enhancement of Djibouti's industrial infrastructure and the promotion of economic growth in the region. The investment comes as part of Afreximbank's ongoing commitment to driving economic development across the African continent.The infusion of the financing facility also signifies a turning point in the development of the free trade zone. The funding will be utilised to initiate and complete various projects that will enhance the infrastructure, logistics capabilities, and industrial facilities within the zone. Proceeds of the facility will also be used for the completion of the Damerjog Oil Jetty, which will provide marine connectivity to the free trade zone, and for the construction of a 150 000m3first storage depot/oil tank farm, as well as for other costs related to the projects.The deal bodes well for the project sector in the region. Djibouti, located in the strategic Horn of Africa, has been making significant efforts to position itself as a key trade and logistics hub on the continent. The funds will be specifically targeted at supporting the development of trade-enabling infrastructure. It will also promote intra-African trade, given that Djibouti’s economy is largely based on the provision of marine services to neighbouring nations Ethiopia and Somalia, by offering them a gateway for ocean-borne freight.According to Afreximbank president Prof Benedict Oramah, this is where the true potential of the deal lies. “The establishment of a jetty and bulk port in the Djibouti Free Trade Zone will add significant value to Djibouti’s role as a transhipment hub for neighbouring landlocked countries,” he said.Speaking on the sidelines of a recent Summit of Heads of State of the African Union, where the financing deal was being discussed, he said that it was part of a total facility amount of $155m. The remaining $35m is being financed through Banque pour le Commerce et l'Industrie Mer Rouge (BCIMR) of Djibouti.
