What is the purpose of the Port of Djibouti’s free-trade zone?

The Port of Djibouti functions as a free-trade zone designed to bolster the country's role as a vital regional trade hub. Its primary purpose is to facilitate the transshipment of goods to other countries in the region, particularly serving as an entrepôt between Ethiopia and the Red Sea trade routes.123

To support these operations, the port is equipped with modern container and refrigeration facilities, as well as a rail link to Ethiopia. By providing essential capabilities for bunkering and supply, the port aims to capture a larger share of the worldwide movement of goods along the Red Sea and the Gulf of Aden. These efforts are part of a broader strategy to leverage Djibouti's strategic location to support its economy as a business and financial center.134