Djibouti

Djibouti or the Republic of Djibouti is a small country in the Eastern Africa portion. The city of Djibouti is considered the capital of Djibouti.  The country is bordered by Eritrea, Ethiopia, Somalia, the Gulf of Aden and the Red Sea. You will also find on the Red Sea’s other side, Yemen. Thus, Yemen is about 20 kilometers from the Djibouti’s coast and along the Arabian Peninsula.

Djibouti’s economy is solely based on the service activities being connected within the strategic status and location of their country. Djibouti is considered northeast Africa’s free trade zone.  Hence, about 2/3 of the total inhabitants of Djibouti resides in their capital city. The remaining inhabitants would be the so-called “Nomadic Herders”.

Most of the food supply in Djibouti is imported. This is because they only experience minimal rain fall or scant rain fall. This is why their crop production of vegetables and fruits are limited. Thus, they need to get their supply elsewhere.

The United Nations' Stand 

The United Nations even pressed their concern regarding the matter. This would go with their program last April 2005. They set up the United Nations World Food Program to warn Djibouti and its 30,000 inhabitants that their country is facing a major food shortage in the coming years. This is because of the poor rainfall they are experiencing since three years ago. If this would continue, Djibouti will experience a severe blow. Thus, the United Nations is doing all it can to prevent this and help the Republic of Djibouti.

The Djibouti Economy 

Djibouti’s economy also thrives in oil. In fact, they provide the services to act as an actual transit port; and as a direct international transshipment and somewhat refueling center. This would be their government alternative; despite the fact that the Republic of Djibouti has only a limited supply of natural resources, contributing to the little industry that they can sustain.

This is actually why the Republic of Djibouti is very dependent on the provided foreign assistance from other nations.  They are using this foreign aid to support and balance the payments they need to make, especially for the financing of the development projects they started and are still planning to do. This is the only option their government can come up with, so as to resolve the problem they have with their economy.

Aside from this, another major set back the Republic of Djibouti is facing would be the increasing rate of unemployment in their country. At current, the rate would range from 40% up to 50%. With the growing number of inhabitants, their government really sees this as a major issue that needs to be resolved immediately. Thus, for their government, inflation is not that big a deal. It is only due to the actual fixed tie between the franc to the US dollar; which made their per capita consumption drop down to an estimated 35% during the last 7 years. This is mostly a result of civil war, high population growth rate and recession. The high growth rate would include the refugees and immigrants.  

It is also estimated that the renewed fight between Eritrea and Ethiopia has become very beneficial to the Republic of Djibouti. This is because the Port of Djibouti currently serves as Ethiopia’s only link to the sea. This would go with the fact that Ethiopia is considered a landlocked country.

With the multitude and even growing difficulties in their economy, the government of the Republic of Djibouti fell into large arrears on their long-term external debts. This is why their country is seeking constant foreign aid and assistance from other nations. So that they can pay off their debts; and meet the actual stipulations of their foreign aid donors.

Properties in Djibouti 

There were no indications that the Republic of Djibouti had properties in the market. This may be due to the fact that their government is still focusing on more important issues and setbacks that they have. As mentioned, they are seeking foreign aid and assistance for the developments they are conducting in their country. If this pertains to residential or resorts being made, this is a good thing.

Major Setbacks 

Thus, one concern if you are planning to reside in the Republic of Djibouti would be the unemployment problem that they have. It’s hard to find employment in the region. With the limited supply of natural resources, it’s even harder to find something to start off with. If you are planning to go there and make it your retirement home, find place there that would be near the establishments.

Research and asking around would really help you find out if there are properties being sold in Djibouti. If you only want to go there for a vacation, they have portions near the coast. If you are planning to buy a property there for investment purposes, you may need to really think about it. Rental and capital gains would seem a bit dim at the moment.

Eritrea

Eritrea or the State of Eritrea, as it is officially called, is located in the north portion of East Africa. The country is bordered by Sudan, Ethiopia, Djibouti and the Red Sea. It is also directly adjacent to Yemen and Saudi Arabia.  Several areas of the so-called Hanish Islands and the Dahlak Archipelago are also considered as part of the State of Eritrea.

The Eritrean Government 

It is said that the Italian government formally consolidated Eritrea into an actual colony last January 1, 1890. When Italy lost during World War II, the British began to administer the country and also regarded and ruled as an actual UN protectorate. This was between the years 1941 up to 1952. Thus, during this time, you will find the UN flag flying all over their official buildings.

Hence, last December 2, 1950; Eritrea was federated with Ethiopia because of the UN General Assembly’s adoption of Resolution 390A. This Resolution was made to have Eritrea go into a so-called federation with Ethiopia. This is why Eritrea became an actual autonomous territory that was federated with Ethiopia from September 1951 up to November 1962. The only concern the people of Eritrea had, was the fact that the UN pushed through with their decision without ever taking into consideration the Eritrean population’s desires.

This decision provoked the Eritrean population into a resistance and an increasing unrest.  The Eritrean population showed that they were very much against the federation with the Ethiopian country. This resistance led the government of Ethiopia to annex the Eritrean country and be regarded as its 14th province during the year 1962.

Thus, during the 1960s a movement was formed seeking the independence of Eritrea. This movement paved the way for a 30 year civil war against the Ethiopian government. The civil war lasted last 1991. This was because of a so-called UN unsupervised referendum which Eritrea dubbed UNOVER. This led the people to vote for an overwhelming independence from the Ethiopian nation.

It was only last 1993 when Eritrea finally had its independence and even gaining international recognition. Thus, in the adopted Eritrean Constitution of 1997, it was stipulated there that the actual state is a direct presidential republic that goes with a unicameral parliamentary democracy. Although the constitution was adopted, it is not yet being implemented fully. The government of Eritrea said that this is because of their prevailing conflict about the border with Ethiopia. This conflict began last May 1998.

Thus, many believe that Eritrea is a repressive and “un-free” country. Many accusations were even thrown at the Eritrean government. One would be a so-called unremitting attack it is planning on the civil society and democratic institutions of Eritrea. Some of these remarks and accusations were even from the Human Rights Watch, the Amnesty International and Freedom House.

Moreover, Eritrea is also considered as a multicultural and multilingual country that is dominated by two religions and around nine ethnic groups. Although Eritrea has no decreed official language, their government is using 2 languages. This would be the Arabic and Tigrinya. For international communications, the Eritrean government prefers to use English. This is also the indicated language of instruction for their educational facilities beyond the 5th grade. There are also those in the older age group that speak Italian. This is because they were able to acquire this during the previous colonial era.

The Eritrean Economy 

The economy of Eritrea is also similar to that of other African nations. It is also largely based on the direct subsistence agriculture. About 80% of the entire population of Eritrea is involved and dedicated to herding and farming. It is just that there are frequent cases of drought in the country, which really poses a huge effect on the farming areas.

Aside from this, the economy of Eritrea was also greatly affected by the Eritrean-Ethiopian War. In fact, last 1999, Eritrea’s GDP growth fell to a less than 1%. Last 2000, the GDP decreased again by about 8.2%. This is because last 2000, the so-called Ethiopian offensive which went to Southern Eritrea made a huge impact on the properties of Eritrea. About $600 million worth of properties were damaged and lost; $225 million worth of livestock was also lost, and about 55,000 homes were damaged. The attack also prevented the Eritrean farmers to plant crops in their most productive areas. This made the food production drop down to about 62%.

Thus, during the actual war, Eritrea was already able to develop its infrastructures. This would be in their transportation, roads, ports and bridges. Major repairs and reforms were made. This was part of the so called Warsay Yika’alo Program. Amidst all these projects, the most significant would be the building of their coastal highway and the rehabilitation of their Eritrean Railway. It would now run in between the capital Asmara and the Port of Massawa.

Although the economic future of Eritrea seems a bit mixed, their government is doing it best to resolve their issues. When the Ethiopians ceased the usage of the Eritrean ports, it left Eritrea with a huge obligation to fill.   

Thus, for Eritrea to succeed, it needs to focus in resolving issues like illiteracy and the poor skills their inhabitant’s posses. The government is already trying to work this out by the improvement of their education system. Once illiteracy is eradicated; and once Eritrea has molded several of its inhabitants into skilled workers, there is a big chance the country’s economy will emerge.