Djibouti has launched the first phase of Africa's largest free trade area to take advantage of its strategic location on one of the world's most dynamic trading routes.
In a ceremony in the capital Djibouti, President Ismaïl Omar Guelleh praised the project, which was the culmination of infrastructure projects that strengthen Djibouti's position in international trade.
Djibouti has unveiled three new ports and a railway linking it with Ethiopia, which has no seaport, as part of its bid to become a global hub for trade and logistics.
The FTA, which is linked to Djibouti's main ports, aims to diversify the country's economy, create new jobs and attract foreign investment through incentives including tax breaks and full logistical support.
The first phase of the project is 240 hectares whereas the project is scheduled to be completed ten years later and cost $ 3.5 billion with an expected area of 4800 hectares, to form the largest free trade area in the African continent.
The authorities hope the project will attract foreign companies to establish factories within the free zone, adding value to the products rather than being a center for exporting and importing raw materials only.