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Djibouti International Free Trade Zone Achieves Strong Start in Q1 2026

04-07-2026

In the first quarter of 2026, the Djibouti International Free Trade Zone delivered an outstanding performance, with key indicators such as land sales, land utilization rate, and employment generation achieving significant growth. This strong start to the year has injected powerful momentum into Djibouti’s socio-economic development and laid a solid foundation for the upgrading of the trade and logistics landscape in East Africa.

In terms of core operational indicators, the Free Zone recorded land sales exceeding 110,000 square meters in the first three months of 2026, marking a substantial year-on-year increase. As the largest free trade zone in Africa, it has become a key destination for global investment in East Africa, leveraging its geographical advantages, well-developed infrastructure, and favorable policies. As of March 2026, a total of 513 enterprises from around the world had established operations in the zone, representing a 22% increase compared to the same period last year. The land utilization rate reached 70%, up by 22 percentage points year-on-year. Among them, Chinese enterprises leased a total of 356,000 square meters of land, accounting for 36% of all long-term leased land in the zone.

In terms of tenant composition, China’s three major construction machinery manufacturers—XCMG, Zoomlion, and SANY—have established a presence in the zone. Leading Chinese heavy truck manufacturers, including Sinotruk, Shaanxi Automobile, and FAW, have also completed their entry. In addition, major new energy vehicle brands such as BYD, Geely, Wuling, Kia, and Great Wall Motors have all set up overseas warehouses in the Free Zone. Several large-scale investment projects are currently under development, and based on the current pace, all land within the zone is expected to be fully leased or sold by 2026, after which expansion plans will be officially launched to further optimize industrial layout and unlock development potential.

In terms of employment, as of March 2026, the Free Zone has created 3,000 direct jobs and 5,000 indirect jobs for local residents, effectively alleviating employment pressure and increasing household income. These opportunities span logistics, manufacturing, and business services, contributing to the cultivation of a skilled local workforce and strengthening the human resource base of Djibouti.

The rapid growth in first-quarter performance can be attributed to the Free Zone’s ability to accurately capture emerging development opportunities. By leveraging increased logistics demand driven by infrastructure upgrades in Ethiopia, capitalizing on the global expansion of the new energy vehicle industry, and seizing strategic opportunities arising from global supply chain restructuring, the Free Zone has continuously optimized its industrial layout, strengthened connectivity with neighboring countries and global markets, and promoted coordinated development across trade, logistics, and export processing sectors.

Since its inauguration in 2018, the Djibouti International Free Trade Zone has remained committed to promoting the diversification of Djibouti’s economy. It has played a vital role in attracting investment, generating employment, and facilitating trade, becoming a new engine for economic growth and a key platform for opening up to the outside world.

Looking ahead, the Free Zone will continue to focus on building itself into a regional hub for trade, logistics, and export processing in East Africa. By improving infrastructure, optimizing the business environment, expanding areas of cooperation, integrating resources, and enhancing operational efficiency, it aims to position Djibouti as a core connectivity hub in East Africa, support regional economic integration, and further deepen China–Africa cooperation.

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