VZCZCXRO4103
RR RUEHLMC RUEHROV
DE RUEHDJ #0335/01 1101253
ZNR UUUUU ZZH
R 201253Z APR 09
FM AMEMBASSY DJIBOUTI
TO RUEHC/SECSTATE WASHDC 0301
INFO IGAD COLLECTIVE
RHMFISS/CJTF HOA
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHDJ/AMEMBASSY DJIBOUTI
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC

UNCLAS SECTION 01 OF 02 DJIBOUTI 000335 
 
SIPDIS 
SENSITIVE 
STATE FOR AF/E 
E/EEB 
AND AF/EPS 
NAIROBI FOR FCS 
ADDIS ABABA FOR REO 
DOC FOR BERKUL 
LONDON 
PARIS 
ROME FOR AFRICA WATCHER 
 
E.O. 12958: N/A 
TAGS: ECON EINV EFIN EAID ENRG ECPS PGOV BEXP SENV FR DJ
SUBJECT: DJIBOUTI: MARCH ECON-ESTH ROUNDUP 
 
REF: 09 DJIBOUTI 93 
 
-------------- 
IN THIS ISSUE: 
-------------- 
 
¶1. (U) This March 2009 Djibouti Economic-ESTH roundup 
includes: 
 
--Djiboutian President Guelleh visits U.S.-led salt mining 
project at Lac Assal 
--Progress underway on Djiboutis new Commercial Code 
--France and Djibouti sign investment risk convention 
--France approves USD 30 million in loans to Djibouti Telecom 
--Djibouti hosts regional environmental conference 
 
------------------------------------ 
PRESIDENTIAL VISIT MARKS PROGRESS 
FOR U.S.-LED SALT INVESTMENT PROJECT 
------------------------------------ 
 
¶2. (SBU) President Guelleh traveled to Djiboutis Lac Assal 
salt lake March 1 to view progress on an American-led salt 
mining project.  The Overseas Private Investment Corporation 
(OPIC)-supported U.S. investment fund Emerging Capital 
Partners holds a majority stake in the salt mining project, 
led locally by Salt Investment, Inc. (reftel).  The project 
represents the largest private U.S. investment in Djibouti. 
Salt Investment plans to harvest salt, using environmentally 
conscious renewable methods, from an 11,000 hectare area of 
the salt lake.  President Guelleh also visited the site of a 
future industrial port at the adjacent Bay of Ghoubet; Salt 
Investment plans to ship salt directly from this port to 
markets in the Middle East and Asia.  Other planned secondary 
installations include housing, health, and leisure 
infrastructure for Salt Investment employees; the investors 
project initial creation of 150-200 local jobs. 
 
-------------------------------- 
NEW COMMERCIAL CODE IN THE WORKS 
-------------------------------- 
 
¶3. (U) The GODJ held a national validation workshop for the 
new Commercial Code March 17-19.  The workshop brought 
together civil society representatives, the legal community, 
the Chamber of Commerce, Justice Ministry personnel, and 
officials from other GODJ ministries to discuss the new code. 
The new Commercial Code is the product of seven years of 
research by a committee dedicated to modernizing the previous 
statutes.  The new code, which included input from 
international experts, is aimed at increasing the security of 
commercial transactions.  It is directed both toward national 
activities, and foreign direct investment projects.  According 
the Minister of Commerce, the new code was designed to 
harmonize Djiboutis legal regime with international 
standards, while adapting to local needs. 
 
-------------------------------------------- 
FRANCO-DJIBOUTIAN INVESTMENT RISK CONVENTION 
-------------------------------------------- 
 
¶4. (U) On March 18, the private Bank for Commerce and Industry 
(BCI), and the French Agency for Development (AFD) signed a 
convention on sharing the risks for investments made by the 
private sector in Djibouti.  The signature of this agreement, 
the first of its kind, establishes the framework for BCI to 
create an AFD-backed finance mechanism for the private sector. 
The agreement is intended to encourage further foreign direct 
investment in Djibouti. 
 
-------------------------------- 
FRANCE APPROVES USD 30 MILLION IN 
LOANS TO DJIBOUTI TELECOM 
------------------------------- 
 
¶5. (U) On March 2, Mr. Yves Budot, Director of the French 
 
DJIBOUTI 00000335  002 OF 002 
 
 
Agency for Development (AFD), and Mr. Abdourahman Mohamed, 
Director General of Djibouti Telecom, signed a USD 30 million 
loan agreement.  The loans will enable Djibouti Telecom, the 
monopoly telecom parastatal, to fund its participation in the 
international consortium created to build the Europe-India- 
Gateway (EIG) submarine cable.  The EIG is expected to boost 
telecommunications performance and capacity in Djibouti.  The 
EIG will also be connected to the EASSY cable linking Djibouti 
to South Africa.  Improving telecommunications capabilities is 
part of the GODJs strategy to cement Djiboutis status as a 
regional transport and services hub. 
 
--------------------------------------------- --- 
DJIBOUTI HOSTS REGIONAL ENVIRONMENTAL CONFERENCE 
--------------------------------------------- --- 
 
¶6. (U) From March 3-5, Djibouti hosted the PERSGA Council of 
Ministers for the first time.  PERSGA, the Regional 
Organization for the Conservation of the Environment of the 
Red Sea and Gulf of Aden, is an intergovernmental body 
dedicated to the conservation of the coastal and marine 
environments of the Red Sea, the Gulf of Aqaba, the Gulf of 
Suez, the Suez Canal, and the Gulf of Aden surrounding the 
Socotra Archipelago and nearby waters.  PERSGAs activities 
are legally based on the 1982 Jeddah Convention.  Its members 
include Djibouti, Egypt, Jordan, Saudi Arabia, Somalia, Sudan 
and Yemen.  The twelfth Council of Ministers closed with the 
adoption of the Djibouti Declaration, which reaffirmed 
member states strong commitment to the Jeddah convention, 
registered concern about the negative impact of climate change 
on ecosystems, biodiversity, and human populations, and 
committed member states to undertake appropriate measures to 
monitor and mitigate these effects. 
SWAN