For Southeast Asia, Investment In Djibouti Is An Imperative

As Southeast Asia cements its role as a global economic powerhouse, the region's investors are increasingly looking beyond traditional markets to secure long-term growth. Enter Djibouti - the tiny but strategically vital nation in the Horn of Africa that offers Southeast Asia, and Malaysia in particular, a unique opportunity to bridge continents, tap into Africa's rising consumer class, and redefine the future of South-South cooperation.

For Southeast Asian nations like Malaysia, this is a mirror of their own success stories. Just as Malaysia's Port Klang and Singapore's maritime dominance transformed Southeast Asia into a global trade nexus, Djibouti's ports and free trade zones are poised to catalyse Africa's economic integration.

The parallels are striking. Djibouti's Doraleh Multipurpose Port and the Djibouti International Free Trade Zone DIFTZ -Africa's largest - offer tax holidays, duty-free imports, and streamlined logistics. For Malaysian firms, this infrastructure is a springboard to serve Ethiopia, Africa's second-most populous nation with a 150bn economy growing at 6-8 annually. With 95 of Ethiopia's trade flowing through Djibouti, the opportunities are vast: from cold-chain logistics for perishables to light manufacturing in DIFTZ.

Southeast Asia's expertise aligns seamlessly with Djibouti's untapped potential. Consider three high-impact sectors:

Renewables and green industrialisation: Djibouti aims to achieve 100 renewable energy by 2035, powered by geothermal, solar, and wind resources. At Lake Assal, a volcanic rift offers over 1,000 MW of geothermal potential - enough to power industries and export surplus energy to Ethiopia.