Chinese, international firms drive growth at Djibouti trade zone

Growing participation by Chinese and international enterprises helped drive first-quarter growth in the Djibouti International Free Trade Zone, with rising land utilization, increased company settlement and stronger employment figures in the first three months of 2026 highlighting the zone's growing role in China-Africa trade, logistics and industrial cooperation in East Africa.

By the end of March, data from the free trade zone showed that 513 enterprises from around the world had established operations there, representing a 22 percent year-on-year increase, while land utilization reached 70 percent, up 22 percentage points from the same period last year.

Chinese companies remained among the zone's major investors, leasing 356,000 square meters of land, accounting for 36 percent of all long-term leased land in the free trade zone.

The zone has also attracted new energy vehicle brands, including BYD and Geely, which have set up overseas warehouses to serve regional markets.

Officials said the growth has translated into local economic benefits, with the zone creating 3,000 direct and 5,000 indirect jobs for Djibouti residents as of the end of March. Employment opportunities span logistics, manufacturing and business services, helping strengthen the local workforce and support household incomes.

"As Africa's largest free trade zone, the DIFTZ has become a key choice for global capital to expand to in East Africa by virtue of its geographical, infrastructure and policy advantages," a statement issued by the zone read.

The zone attributed the strong first-quarter performance to increased logistics demand linked to infrastructure upgrades in neighboring Ethiopia, expansion in the global new energy vehicle sector and shifting international supply chains.

Since its inauguration in 2018, the DIFTZ has played a growing role in Djibouti's efforts to diversify its economy and position itself as a regional gateway for trade and logistics in East Africa.

"Going forward, the free zone will continue to focus on building itself into a regional hub for trade, logistics and export processing in East Africa," the statement read, adding that the intention is to further deepen China-Africa cooperation and support regional economic integration.

sharon@chinadailyafrica.com