1.It’s the latest Chinese investment in tiny, strategically located East African nation.
2. port authority says it will create a world-class business hub and thousands of Jobs.
China’s biggest port operator has moved to consolidate its foothold in Djibouti after it agreed a financing deal with the East African nation to turn its Port of Djibouti into an international business hub.
China Merchants Group signed the US$350 million investment deal with state-owned company Great Horn Investment Holding on December 29, paving the way for the revamp of the port, which is more than a century old.
Located in Djibouti City, the US$3 billion project is to be modelled on the southern Chinese port of Shekou in Shenzhen that is integrated with a free-trade zone and business centre. State-controlled China Merchants played a key role in Shekou’s development.
Aboubaker Omar Hadi, chairman of the Djibouti Ports and Free Zones Authority (DPFZA), said the project would have “a profound impact on the future course of our country and advance Vision 2035”, the nation’s development strategy.
Speaking at a signing ceremony held via video link, Hadi said it would turn Djibouti into a world-class business hub, creating thousands of jobs and wealth.
The first phase of the project – building an exhibition centre and a four-star hotel – began on October 8 and is expected to cost US$513 million. Hadi said skyscrapers, walking areas and shopping malls would also be built
Aboubaker Omar Hadi, chairman of the DPFZA, said the project would have “a profound impact” on the future course of Djibouti. Photo: Felix Wong