Free Trade Zones and Cargo Capacity at Ports

Accra, Ghana - October 20th 2012: Ship being unloaded at the Harbor of Accra

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Free Trade Zones and Cargo Capacity at Ports
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Consumer Services
Business Model Description

Build businesses operations to increase industrial, transshipment and seaborne cargo capacity around four industrial clusters of focus at Djibouti's ports: logistics (transportation, warehousing and similar), business industry (goods transactions and merchandise display), business support (financial services, accommodation and office spaces) and processing manufacturing (packaging and light processing).

Expected Impact

Increase regional manufacturing output, improve intra-regional trade and enhance value chain development.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Sustainable Cities and Communities (SDG 11)
Sector Sources
  • 1) International Trade Centre (ITC). Services Snapshot Djibouti. 2012. 2) International Trade Centre (ITC). Trade in Services. 2021. 3) AfDB, OECD, UNDP and UNECA. African Economic Outlook - Djibouti. 2012. 4) International Monetary Fund (IMF). Staff Report and Statement by the Executive Director for Djibouti. 2019. 5) African Development Bank (AfDB). Djibouti Economic Outlook. 2021. 6) International Centre for Trade and Sustainable Development, September. The Gender Dimensions of Services. 2016. 7) UNCTAD, UN Women & EU. Gender and Trade Assessing the Impact of Trade Agreements on Gender Equality: Canada-EU Comprehensive and Trade Agreement. 2020. 8) Chambre de Commerce de Djibouti. Panorama du Secteur Privé Djiboutien. 2015. 9) Djibouti Ports & Free Zones Authority. Djibouti International Free Trade Zone. 2019. 10) Republic of Djibouti Ministry of Social Affairs and Solidarity. Strategie Nationale De Protection Sociale (2018 - 2022). 2017. 11) Horn of Africa Initiative, June. The Horn of Africa Initiative Launches its Multi-Donor Trust Fund (MDTF). 2021. 12) World Bank. From Isolation to Integration: The Borderlands of the Horn of Africa. 2020.
IOA Sources
  • 13) Djibouti Ports and Free Zones Authority (DPFZA). Djibouti International Free Trade Zone (DIFTZ). 2021. 14) Theo Notteboom, Athanasios Pallis and Jean-Paul Rodrigue. 2021. Port Economics, Management and Policy - Terminal Concessions and Land Leases. 15) World Bank Group. 2011. Special Economic Zones in Africa Comparing Performance and Learning From Global Experiences. 16) Djibouti International Free Trade Zone. 2021. 17) World Bank. Database on Manufacturing, value added (% of GDP) - Djibouti. 2021. 18) ILO. ILOSTAT. Proportion of informal employment in total employment by sex and sector. 2017. 19) World Bank. Database on Employment in Industry. 2021. 20) The International Bank for Reconstruction and Development / World Bank. Fostering Women's Economic Empowerment through Special Economic Zones : Comparative Analysis of Eight Countries and Implications for Governments, Zone Authorities and Businesses. 2011. 21) Aggarwal, Aradhna. Impact of Special Economic Zones on Employment, Poverty and Human Development, CRIER Working Paper No 194. 2007. 22) World Bank. Database on . Unemployment. 2021. 23) Republic of Djibouti. Vision Djibouti 2035. 2014. 24) Strategy of Accelerated Growth and Promotion of Employment 2015-2019. 2014. 25) Horn of Africa Initiative. Joint Presentation by AfDB, EU and World Bank. 2021. 26) Republic of Djibouti. Loi n°65/AN/94/3e L portant création du régime de Zone franche industrielle. 2016. 27) Djibouti Ports and Free Zones Authority (DPFZA). Free Zone Code Incentives. 2021., detailed in 28) Horn of Africa Initiative. World Bank prioritizes the Horn of Africa in its approach for regional integration in Africa. 2021. 29) Djibouti Damerjog Industrial Park (DDIP). Overview. 2021. 30) World Bank. Database on FDI. 2019.