Feature – The Horn’s bright new hope

Nestling between foes Eritrea and Ethiopia, with strife-torn Somalia at its tip, the tiny Red Sea state of Djibouti appears set to take off in a big way. With its three neighbours wracked by external or internal conflict, hitherto sleepy Djibouti has been propelled into the international arena because of its strategic position and relative security. US TROOPS AN ECONOMIC PLUS Foreign forces, notably from the former colonial power France, have long had a presence in Djibouti. But since the Americans established themselves there in the aftermath of the 11 September attacks, it appears the nation’s fortunes have changed for the better. After initially basing itself aboard a state-of-the-art battleship off Djibouti’s coastline, the US counter-terrorism operation in the Horn – which now comprises some 1,800 personnel - came ashore earlier this year. They set themselves up at Camp Lemonier, not far from Djibouti's international airport. President Ismail Omar Guelleh has acknowledged the economic advantages of having the Americans on his soil. "Over 1,000 people have found employment, local businesses are engaged and they [the Americans] are making considerable investments," he told IRIN in a recent interview. "It has definitely had a positive effect on Djibouti," he stressed. Indeed, in his-first ever visit to the country earlier this month, Andrew Natsios, the administrator of USAID – the US government’s humanitarian assistance body - unveiled a package worth US $20 million for health and education projects. The US troops have been carrying out humanitarian work, such as renovating hospitals, as well as military training for armies in the Horn of Africa countries. "The Americans feel at ease here," Guelleh told IRIN. "They don’t disturb anyone and they are not disturbed." PORT EXPANSION But it is at the port of Djibouti that the country’s potential economic boom can be felt. Historically, the port has been the country’s lifeline, with Djibouti city developing around the facility in the early 1900s. Strategically located at the crossroads of the sea routes from Europe, the Far East, Africa and the Gulf, Djibouti was used by a series of traders, including the Egyptians, the Phoenicians, the Romans, Greeks, Arabs and later the Europeans, in search of spice routes. Fast-forwarding to this century, the port has experienced a massive boom since Ethiopia diverted its trade from Eritrea as a result of the 1998-2000 border war. Eighty percent of the goods it handles are destined for landlocked Ethiopia, and the port’s capacity is now almost saturated. It is for this reason, explains Aden Ahmed Douale, the Djibouti government’s representative at the port, that a new and much larger port is being developed at Doraleh, about eight km east of the current facility.

Aden Ahmed Douale

"Before the Eritrea-Ethiopia war, the port was operating at about 20 to 30 percent capacity," Douale told IRIN. "Now it’s operating at 100 percent capacity. We need the new port to absorb and develop the demand." Noting that the country has a huge hinterland, Douale believes Djibouti will become the major seaport of East Africa. Since June 2000, it has been managed by the Dubai Ports Authority, and there are plans to set up a free trade zone. "We have to take advantage of our strategic location," Douale says. The new port will have a huge impact on the local economy, generating jobs and driving other types of industry. The Djiboutian authorities hope in particular that tourism will be developed. At a cost of around US $400 million, the port is being built in two phases. The first phase – construction of the oil terminal – is due to be completed by the end of next year. Phase two – the container area and free trade zone – is scheduled for completion in 2006. "September 11th changed everything," Douale points out. "The Americans needed a base in the region, and Djibouti was seen as the most secure. The Americans will use the new port. The opportunity is now, and we have to grasp it." He dismisses any fears of terrorism activities, saying Djibouti is taking measures to implement international conventions on security. "We have good cooperation with countries such as the US and France, who pass on intelligence concerning terrorist threats," he says.