DJIBOUTI – Djibouti, a small country with significant geopolitical importance, has attracted the attention of several great powers, hosting their military bases due to its strategic location and stable environment.
According to Africa News Agency, The international allure of Djibouti stems from its geographic and historic significance. Located at the southern entrance to the Bab el-Mandeb Strait near the Arabian Peninsula, Djibouti is a key transit point for a significant portion of the world’s goods, including a quarter of hydrocarbons. Historically, the French colonizers developed its port infrastructures to facilitate trade between East Africa and French Asian economies, particularly Indochina, leveraging its abundant marine resources.
Djibouti’s geopolitical relevance surged post-September 11, 2001, when the United States established a military base in the country. This choice was influenced by the existing French presence and Djibouti’s proximity to the Arabian Gulf, enabling the U.S. to monitor regions like Yemen and Somalia. Additionally, maritime piracy issues along the Somali coasts further enhanced Djibouti’s strategic position, leading to the deployment of the European naval force EUNavFor and a Japanese military base. China’s establishment of a military base in 2017, however, was distinct from the contexts of piracy and terrorism.
The Chinese base was set up following the ‘Arab Spring’ events, particularly after the fall of Gaddafi in Libya in 2011, where China faced challenges in evacuating its nationals. This move signaled China’s intention to assert itself as a global power and protect its significant investments and large number of nationals residing in East Africa and the Arabian Peninsula.
The presence of these military installations has had a varying economic impact on Djibouti. Historically, the French military presence accounted for a significant portion of Djibouti’s GDP. However, with the reduction in French troops and the establishment of new bases, the financial returns have decreased to less than ten percent of the GDP. Despite this, the government prioritizes the global visibility and security benefits these bases provide over direct financial gains.
Djibouti maintains a balanced foreign policy, aligning neither exclusively with Western nor Asian or Chinese blocs. The country’s relationship with China, characterized by significant investment in exchange for military presence, contrasts with its interactions with Western partners, which are more focused on facilitating IMF and World Bank facilities rather than direct investments.
Despite its heavy reliance on Chinese investments, Djibouti retains negotiation leverage due to hosting the Chinese military base. The country remains open to dialogue with various global powers, including Russia, although the United States has previously urged Djibouti not to accept a Russian base.
Regionally, Djibouti’s economy is closely intertwined with Ethiopia’s, with both countries experiencing mutual dependencies. Djibouti is exploring economic diversification to reduce reliance on port activities and trade with Ethiopia, while Ethiopia seeks alternative routes for goods delivery.
The Institute of Political and Strategic Studies (IEPS) of the Djibouti Study and Research Center, founded in 2008 following the war between Djibouti and Eritrea, plays a crucial role in providing independent analyses on Djibouti’s governance, economy, society, and the geopolitical dynamics of the Horn of Africa. It serves as a hub for debate and the generation of new ideas.