How do you view continental integration in Africa?

AfCFTA represents a new beginning and a unique opportunity to build on our experience of regional integration over the past 20 years. It offers a way to diversify the economy, boost productivity and stimulate investment. It will help Africa become stronger and more dynamic.

What steps has Djibouti taken so far?

Regional integration is an integral part of Djibouti's Vision 2035, the country's long-term strategy to position itself as a hub for the regional economy. Djibouti is the only WTO member in the Horn of Africa and its adherence to WTO rules and disciplines will facilitate its integration of AfCFTA rules. We want to become a regional hub for trade, finance and telecommunications. Our efforts are anchored in institutional strengthening and coordination.

We actively participated in the first phase of AfCFTA negotiations, which allowed us to submit our schedule of commitments for transport, communication, tourism and professional services. This required consultations with and training for businesses working in those sectors.

Partnerships play an important role. With help from the African Union, Djibouti took stock of its laws on services. The World Customs Organization also helped Djibouti migrate to the 2022 harmonized customs system. This was important for preparing our initial tariff schedule for validation. We are now working in close partnership with the Chamber of Commerce to raise awareness among businesses about opportunities and challenges associated with AfCFTA.

Djibouti is currently participating in the second phase of AfCFTA negotiations, which are focusing on intellectual property rights, investment protection and competition policy. At the national level, workshops, training activities and consultations with technical experts are already being rolled out.

What challenges does AfCFTA pose and how is Djibouti addressing them?

The implementation of AfCFTA may cause a loss in customs revenues for Djibouti. In addition, we are worried about our small businesses. We have to look at how much competition they will face and prepare them to make the most of AfCFTA.

Over the past decade, Djibouti has invested a lot in infrastructure to strengthen its role as a  distribution centre and gateway to the Red Sea for neighbouring landlocked countries. We have built a free trade zone with processing and transformation capacities. As a member of the Common Market for Eastern and Southern Africa (COMESA), Djibouti has also adopted a flexible investment regime and rules of origin which bring new trade opportunities for us and the entire region.

Based on Djibouti’s experience, what advice would you give?

First, build on good practices. Regional integration in Africa stretches back 20 years. A lot of work has already been done. For example, Djibouti’s implementation of a simplified regime for cross-border transactions under COMESA helped a great deal to facilitate trade.

Second, coordinate at the national level. For example, we already have inter-ministerial mechanisms on trade facilitation and non-tariff barriers, and we want to give them a more permanent role.

Third, invest in productive sectors. We need to strengthen our productive capacity if we are to actively participate in regional value chains and take advantage of opportunities offered by AfCFTA.  In Djibouti, we aim to diversify our economy, with priority sectors ranging from tourism to telecommunications. To achieve this, we need the international community’s support and engagement.