Economic and Social Development: Accord de paix et de la reconciliation nationale

Agreement for Peace and National Reconciliation-1994

SECTION III: MANAGEMENT OF THE RETURN TO PEACE

b) The Government “recognizes the cultural, social and economic differences as well as the regional disparities and specific social inequalities existing in Djibouti society” (the only explicit recognition of Issa and Afar disparities) and engages to continue the efforts already undertaken in restoring damaged public infrastructures administrative buildings, community clinics, water-holes etc.)

Implementation History

1995

Minimum Implementation

The accord called for the reconstruction of war damage and efforts to rebuild Djibouti’s damaged infrastructure were planned. The Djibouti government signed an agreement with Japan to rebuild, upgrade and extend its port facilities. USD 19.5 million was put up by Japan in 1994-95 for this project and for the second stage of a school construction project in the Balbala section of the capital. The French Caisse Franciase de Developpement also contributed to port modernization in Djibouti. Similarly, Djibouti received funds to renovate the north-south Unity Road from Saudi Arabia, which was also giving money to repair damaged schools.1

  • 1. "DJIBOUTI: Review 1996," Africa Review World of Information, September 1995.
1996

Minimum Implementation

An agreement was made with the IMF on an austerity program in April 1996. It gives a bleak picture of the economic constraints that the Djibouti government was facing in rebuilding its damaged infrastructure. Nevertheless, the government was considering projects related to agriculture sectors which included increasing the amount of arable land by irrigation schemes and development of the fishing industry.2

  • 2. "DJIBOUTI: Review 1997," Africa Review World of Information, February 1997.
1997

Minimum Implementation

It was reported that Djibouti invited Malaysian port operators to participate in its harbour development projects.3

The UN Secretary General, in his report (document A/52/434), highlighted the immediate need for the reconstruction of damaged or destroyed social infrastructures (schools, dispensaries, water facilities) in all regions that have been affected by civil strife. The report described the operational activities of various United Nations agencies, including United Nations Children's Fund (UNICEF), United Nations Development Programme (UNDP), World Food Programme (WFP), and World Health Organization (WHO) in Djibouti. It concluded by requesting the international community to provide financial support to enable the continuation of the technical assistance projects, in order to meet urgent socio-economic programs for the reconstruction and development process in Djibouti.4

In 1997, according to a report, the International Development Association (IDA) agreed to a USD6.5 million credit to help finance the economic reform program. The European Union's Development Fund agreed to an Ecu22 million (USD24 million) grant in December 1996 to assist in improving the transport system and living conditions, particularly the supply of water to urban areas. Several developments during 1997 offer encouragement, however. The French agreed to a Ff34 million (USD6 million) loan in early 1997 to assist in the modernization of the port, including the purchase of a new tug boat. More significant, though, was the opening of two oil terminals at the port in February 1997 after a two-year construction period. The Df3.5 billion (USD20 million) project was financed by Japan as part of its non-repayable financial co-operation programme. The terminals mean that Djibouti should once again resume its position as the principal gateway for oil products to the sub-region (Ethiopia, Eritrea and Somalia), as well as a transit point for other goods. The terminals are forecast to handle 740,000 tonnes of oil products by 2010 compared to 340,000 tonnes in 1992.5

  • 3. "Djibouti invites local operators to participate in harbour projects," Business Times (Malaysia), May 7, 1997.
  • 4. "Djibouti; Reconstruction and Development of Djibouti," Africa News, November 24, 1997.
  • 5. "DJIBOUTI: AFRICA REVIEW 1998," Africa Review World of Information, March 1998.
1998

Minimum Implementation

It was reported that Djibouti wanted Malaysia's help to modernize and develop sectors such as agriculture, power generation, port and airport services. Djibouti was also seeking Malaysian involvement in its economic development especially in ports.6 Djibouti is principally a entrepot for Ethiopia; with 1998-2000 war with Eritrea and end of use of its ports, Ethiopia becomes and remains dependent on Djibouti – which generates vast revenues.

  • 6. "DJIBOUTI WANTS MALAYSIA TO USE IT AS GATEWAY TO EAST AFRICA," Malaysia General News, August 3, 1998.
1999

Minimum Implementation

The World Bank approved a US$14.8 million equivalent credit, in May 1999, to support the Republic of Djibouti's efforts in generating low- skilled employment opportunities to directly benefit the poor. The project was expected to enhance the living standards of the poor in the city of Djibouti by “improving the physical environment in poor neighborhoods through construction and rehabilitation of urban infrastructures, such as street works and drainage, social infrastructure, and community neighborhood infrastructure; increasing community participation in project identification and implementation and providing social services to poor communities; building the institutional capacity of various stakeholders involved in the implementation of the project activities.”7

According to a Heritage Foundation report, Djibouti was open to foreign investment but the lack of infrastructure was hindering investment.8

  • 7. "Djibouti; Djibouti Creates Job Opportunities For The Poor," Africa News, May 27, 1999.
  • 8. "Chapter 6: The Countries; Republic of Djibouti," Heritage Foundation Reports, December 1999.
2000

Intermediate Implementation

In 2000, Arab financial institutions agreed to finance development projects in Djibouti to the tune of 196 million dollars. The funds, decided at a meeting of financial backers in Kuwait in May, would be used for development projects in education, health, energy and infrastructure.9

The first Djibouti dry port, valued at US$ 12 million, had been completed.10 In December 2000, Djibouti received $10 Million in credit from the World Bank to support its educational development strategy.11

  • 9. "Arab institutions agree 196 million dollars in aid to Djibouti," Agence France Presse – English, June 3, 2000.
  • 10. "DJIBOUTI DRY PORT: A project which is advancing on Djibouti," The Indian Ocean Newsletter, October 21, 2000.
  • 11. "World Bank discusses new country assistance strategy for Djibouti, approves a US$ 10 million credit for an education program," M2 PRESSWIRE, December 21, 2000.
2001

Intermediate Implementation

No further developments observed.

2002

Intermediate Implementation

No further developments observed.

2003

Intermediate Implementation

No further developments observed.

2004

Intermediate Implementation

No further developments observed.