Building a Shipshape Djibouti — CONSTRUCTION EQUIPMENT

The boom in the building industry in Djibouti has led to an increase in demand for heavy-duty construction equipment and other construction machinery. This boost to infrastructure building has been orchestrated by the Djibouti Government which is trying to diversify an economy traditionally based on the service sector and port and logistics activities. The Djibouti Vision 2035, is a road map for the country’s economic development by 2035 with an immediate plan for a five-year strategy for rapid growth and job creation.

Djibouti Economy: On the map, Djibouti is a tiny African country which has become a giant in the East African trading and logistics business. As one of the peaceful stable nations in the region, Djibouti is ideally positioned to be a trading hub and gateway to trillion dollar East African market. For the same reasons, it also has various foreign military bases on its soil. It is dependent on external assistance for financing its development projects. In Djibouti, construction for the bulk of the projects is done by overseas companies either in the form of large-scale projects or by competitively bidding for open tenders in the market.

Opportunities in Djibouti: Since the turn of the century, Djibouti’s building sector has been a major player in the economic progress of the country. Although smaller than the logistics sector, this industry is important for its triggering effect on the growth of other sectors while generating employment. Djibouti has taken major strides in developing its facilities, particularly its ports, to stimulate rapid growth. In a bid to further enhance the commercial potential of the country, a number of infrastructure creation projects are being undertaken. As part of the diversification of the economy, the authorities are focusing on the telecommunications, tourism and energy sectors. Partnership with leading development firms from all over the world has led to various projects in these areas. Urban renovation projects in the cities as well as large scale transport expansion projects have been launched to improve connectivity in the country. Further plans include infrastructure projects for new ports, railways, airports and power plants.

Creating adequate and affordable housing is another priority for the government of Djibouti along with transport and energy infrastructure development. There is a significant housing deficit despite the major strides in urban expansion. As per one estimate, the demand for new housing stands at 2500–3000 units per year only a third of which is being fulfilled. The government has launched a variety of programmes to address this growing housing demand. As such, the outlook for the building sector seems good.

SMAG Djibouti, the company’s representative office in Djibouti is set to tap into the high demand for construction equipment as a focus for their expansion plans to support the Djibouti plans for the growth of telecommunications, tourism sectors. The SMAG Djibouti office based at K12Arta Road, Djibouti Free Zone supports sales, technical & parts staff with access to an extensive distribution center located in the UAE; all of which is ISO 9001 accredited. More information about the products and services provided is available at SMAG.dj .