free zone

The strategic importance of Djibouti is recorded in the number and diversity of powers that have sought to dominate this little nation. Yet today the country enjoys political stability and economic growth.

The country lies at a vital crossroads on the trade routes between East and West, below the Horn of Africa at the confluence of the Red Sea and the Indian Ocean, and its culture reflects the many peoples who have been part of its history. Today, it is emerging as one of the most important gateways for trade to the African continent, offering excellent port facilities for import, export and trans-shipment, and onward connections by road, rail and air.

The Djibouti Free Zone (DFZ) is testimony to the pro-business attitude of Djibouti in developing a diversified and self-sufficient economy. DFZ provides business investors in Africa with a platform from which to tap in to the potential of the African market, without compromising on the level and quality of support that is vital to business success.

PIC DJIB FREEZONE INFRASTRUCTURE

overview

Djibouti Ports & Free Zones Authority

DPFZA is administered by Dubai International Administration (DIA) a branch company of Dubai International Djibouti FZE. This ensures that all rules and regulations are in accordance with international standards and as investor-friendly as they are in Jebel Ali Free Zone, Dubai.

The International standards of business-friendly operation and services provision which have attracted so many world class companies to Jebel Ali Free Zone in Dubai are being replicated in Djibouti, giving businesses and investors a competitive edge never before available on the African Mainland.

Oil Container Photo

structure

The 17-hectare Djibouti Free Zone is the first of its kind in Africa. Under the management of Jafza International, every consideration has been taken to ensure that businesses operating from DFZ are well positioned to reap the rewards of their investment.
Investors are offered a mix of pre-built office and warehouse/industrial units, built to the quality standards of Jebel Ali Free Zone, or a plot of land on which to build their own customised facility.

Investors are free to capitalize on Djibouti’s location for warehousing, storage and distribution activities or they can carry out light manufacturing and value-added activities to benefit from COMESA rules of origin, as well as the AGOA trade agreement.
Arrive Tanker Photo

development

2 phases:
Phase 1 : Pre-built warehouse units and plots of land

Phase 1 was largely booked out before free zone operations started in October 2004 and consists of the following:
12 Warehouse units of 2 sizes and leased at a rate of US$60 per sq.m per year.

The larger units comprise a 1,116 sq.m warehouse with an attached 224 sq.m office (US$80,400 per year)
The smaller units comprise a 558 sq.m warehouse with an attached 56 sq.m office. (US$36,840 per year)
Plots of land cover an area ranging from 1,500 sq.m to 10,000sq.m and the annual lease for each plot is US$9 per sq.m per year.

Phase 2: Pre-built Light Industrial Units, Offices and Humanitarian AID Hangar

Phase 2 construction is underway for completion by end 2005 and consists of:
34 Pre-built Light Industrial Units (LIUs) for warehousing, distribution or light-manufacturing activities. Each unit covers an area of 460sq.m plus attached office space of 50 sq.m and will be leased at a rate of US$60 per sq.m per year.
64 Unit office building for companies that wish to lease office-only accommodation. Each office unit covers an area of 26 sq.m and will be leased at a rate of US$300 per sq.m per year.

9,100 sq.m open plan hangar for short and long term storage of Humanitarian AID Cargo. AID organisations will be offered storage facilities without the requirement of registering a company with the Djibouti Ports & Free Zones Authority.

INVESTMENT BENEFITS

The incentives and benefits offered by Djibouti Free Zone will largely mirror those at Jebel Ali and include but are not limited to the following:

RULES AND REGULATIONS

The first step to operate from a Djibouti Free Zone is to submit a completed ‘Application for Licence’ form.2. Companies setting up an FZE or FZCO will also have to submit an FZE or FZCO form

3. After provisional approval investors will have to submit the relevant legal documents (see below). Investors are provided with a sample Lease Agreement, Personnel Secondment Agreement, FZ rules and Implementing Regulations (in the case of an FZE or FZCO)4. If all documents are in order the investor can collect and sign the formal Lease Agreement and Personnel Secondment greement and make all necessary payments, after which the allocated facility will become available.

5. The Licence will become available after two working days.6. For an FZE or FZCO the applicant will also have to show that the required share capital has been deposited in the bank, after which a Certificate of Formation and Share Certificate will be issued.