Meander through the streets of Djibouti and you might find yourself in Istanbul Square or Konya Avenue either or eat at the restaurant named after Mehmed Ali Pasha of Kavala, the Ottoman governor of Egypt – clear markers of how Turkish influence runs deep in this Horn of Africa nation that shares its name with the capital city.
In just a decade, the volume of trade between Türkiye and Djibouti has exploded from US $60 million to $500 million. Turkish companies have invested $205 million across 21 major projects, reshaping bilateral economic cooperation in myriad ways.
This substantial growth reflects far more than commerce thriving in an environment of growing trust between the two countries.
Djibouti, whose relationship with Türkiye is rooted in historical foundations dating back to the Ottoman period, has established a multifaceted relationship that now encompasses food exports, infrastructure investments, water and energy projects, and cultural ties.
Strategic importance
Djibouti has held a strategic position in global trade throughout history due to its location at the junction of the Red Sea and the Gulf of Aden. In addition to being a critical stopover for energy and manufactured goods supply, the country serves as a hub for maritime transportation and refuelling.
Most of Djibouti's income is generated through port operations and the hosting of foreign military bases. These commercial activities are led by the ports of Djibouti and Doraleh, which also cater to the maritime trade needs of neighbouring countries such as Ethiopia and Somalia.
Due to the region's arid climate, agricultural activities in Djibouti are limited, resulting in the need to import most food products for domestic consumption. Over the past 15 years, Türkiye has significantly increased its exports to Djibouti, making it the country’s primary food supplier.
Modern diplomacy
Political relations between the two countries go back centuries.
Between the 16th and 19th centuries, parts of Djibouti were administered by the Turks as a means of protection against the threat of a Portuguese incursion.
Djibouti was among the first commercial hubs of the Ottoman Empire in Africa. Modern diplomatic relations were established immediately after the country gained independence in 1977. Since 2003, Türkiye has supported Djibouti's economic growth, job creation and development efforts.
Bilateral cooperation continues to grow each year, not only in trade but also in education, health and energy.
Djibouti opened its embassy in Türkiye in 2012, and Türkiye established one in Djibouti in 2013. The Turkish Cooperation and Coordination Agency (TİKA) also opened an office in the country in 2015. Turkish Airlines (THY) currently operates between seven and 14 weekly flights to Djibouti.
Economic partnership
The Foreign Economic Relations Board of Türkiye (DEİK) and the Djibouti Chamber of Commerce signed an agreement to establish the Türkiye-Djibouti Business Council, whose brief is to strengthen commercial ties, create business forums, and organise delegation visits and seminars. Djibouti-Turkey Business Forum was also held in Djibouti on 29 December 2016.
At the initiative of Turkish President Recep Tayyip Erdoğan and his Djiboutian counterpart Ismail Omar Guelleh, it was decided in 2017 to establish a Turkish Special Economic Zone spanning 5,000 hectares in the East African nation’s port region.
Located near the Doraleh port, this zone is strategically positioned for shipping and production. Within the scope of this cooperation in energy, logistics, manufacturing and light industry, the Djiboutian government has pledged to offer tax incentives and exemptions.
Turkish companies entering the East African market plan to increase their storage, assembly and production capacities in Djibouti.
"In recent years, economic relations between Türkiye and Djibouti have gained momentum. Djibouti's strategic location on the Red Sea and its role as the gateway to East Africa make it an important trade and investment partner for Türkiye," Djiboutian Hassan Idriss Moussa, a PhD student in international relations at Karabuk University’s Institute of Graduate Programs, tells TRT Afrika.
Variety of projects
Türkiye has provided significant support to Djibouti in the water and energy sectors. In 2017, it started constructing the Ambouli Friendship Dam with state funding to protect Djibouti City — home to 75% of the country's population — from flooding. Another objective was to ensure uninterrupted water supply.
Operational control of the dam, completed in 2020, was transferred to Djibouti the following year. Located 22km west of the capital, it also helps recharge underground water reserves.
More than 10 Turkish companies are actively operating in Djibouti, primarily in the textiles, construction and tourism sectors. These companies have undertaken several projects, including hotels, parks and road construction.
The Best Western Premier DJ Hotel in the capital and the adjacent park were built by Turkish contractors. Konya Metropolitan Municipality, Çankaya Municipality and Polatli Municipality have signed sister city protocols with Djibouti Municipality.
The Abdülhamid II Mosque and Complex, built by the Türkiye Diyanet Foundation, symbolises the enduring friendship between the two nations.
Expanding exports
Key products exported from Türkiye to Djibouti include iron and steel, electrical devices and machinery, hygiene products and furniture. Food items such as safflower and sunflower oils, solid and liquid vegetable and animal fats, wheat and mixed grains, flour, pasta, couscous, pulses, biscuits, and wafers, as well as fresh vegetables and eggs, are part of the Turkish export bouquet.
As of 2023, Türkiye ranked fourth among countries exporting products and services to Djibouti, and ninth in terms of imports from the African nation. Djibouti's most important export item to Türkiye is ink.
‘’Türkiye’s development projects in the region have emerged as key elements reinforcing these ties," Sadak Mohamud Hassan Gafow, a Somali PhD student in economics at Ondokuz Mayıs University’s Institute of Graduate Programs, tells TRT Afrika.
"Despite the growth in trade volume, there remains a structural asymmetry in the economic relationship between the two countries. As of 2024, Türkiye exported goods worth $389 million to Djibouti, while importing very little in return. This imbalance reflects Djibouti’s domestic economy, which is heavily reliant on imports and characterised by limited and low-capacity export sectors,’’ Gafow says.
Future Prospects
Firstly, the Türkiye -Djibouti Joint Economic Commission convened in Ankara on 18-19 February 2020. On February 5 last year, the 5th meeting of the Türkiye-Djibouti Joint Economic Commission culminated in 15 agreements encompassing agriculture, animal husbandry, fisheries, tourism, energy, standardisation, and maritime affairs.
The growth trajectory in terms of trade volume has been remarkable – $60 million in 2014, $102 million in 2017, $196 million in 2018, $255 million in 2019, $319 million in 2020 and $500 million in 2024.
"With increased cooperation, this figure is expected to rise even further. Djibouti offers significant opportunities for Turkish investors," Moussa says.
"Among the strong aspects of Türkiye-Djibouti relations are diplomatic stability, Türkiye’s active role in development projects, and the logistical networks facilitating regional trade. Türkiye’s contributions to Djibouti’s infrastructure—particularly in construction, transportation, and healthcare—have elevated the relationship to a development-focused level,’’ Gafow observes.
‘’However, Djibouti’s limited export capacity renders the partnership almost unilateral. For the bilateral relationship to gain real substance, Djibouti must strengthen its production base, Turkish private sector actors should be encouraged to invest in the country, and joint production models—such as industrial zones and agricultural hubs—should be implemented. Only then can Türkiye-Djibouti economic and trade relations transform into a reciprocal, long-term, and strategic partnership," he suggests.
