Djibouti(Mogadishu24) – A high-level delegation from the African Continental Free Trade Area (AfCFTA), led by ZLECAF Director Mme. Demitta Chinwude, visited the Djibouti International Free Trade Zone to evaluate the country’s trade infrastructure Tuesday.

The objective of the visit was to assess the existing facilities that support and promote intra-African trade and witness the pivotal role Djibouti plays in enhancing trade across the continent.

The delegation’s tour of the trade zone showcased Djibouti’s advanced logistics capabilities and strategic importance in facilitating free trade. Discussions between the AfCFTA team and Djibouti Ports and Free Zones Authority (DPFZA) Chairman, Mr. Omar Hadi, highlighted several innovative concepts and initiatives that are driving the region’s trade development.

Key Trade Facilitation Initiatives

Among the initiatives discussed was the Sea-Air Cargo concept, a groundbreaking logistics model that combines sea and air transport to optimize the delivery of goods throughout Africa. This approach has significantly reduced delivery times and costs, currently connecting 27 cities across 24 African countries, and positioning Djibouti as a key logistics hub in the continent’s trade network.

The DPFZA also introduced the Cost Insurance Freight (CIF) model, which brings international commodities closer to their final destinations in East Africa, simplifying supply chains and enhancing trade efficiency.

Another significant project presented to the AfCFTA delegation was the Trans-African Railway, an ambitious infrastructure investment aiming to link the Indian Ocean to the Atlantic. This railway project is part of Djibouti’s commitment to bolstering Africa’s trade connectivity and supporting the development of a seamless transport corridor across the continent.

Djibouti’s Commitment to Intra-African Trade

As one of the 54 signatory countries of the AfCFTA agreement and having ratified it in 2021, Djibouti has consistently demonstrated a strong commitment to promoting and facilitating intra-African trade. The DPFZA’s proactive efforts to enhance trade logistics and infrastructure are clear evidence of the country’s dedication to fostering a robust and interconnected African trade environment.

Chairman Omar Hadi, during his address to the delegation, emphasized the importance of boosting intra-African trade, which currently stands at just 14% of the continent’s total trade.

“To significantly increase this figure, we must eliminate physical and customs barriers, while also promoting the concept of an African Union passport,” he stated. “This will facilitate the movement of goods and people and further position ‘Made in Africa’ products for global markets.”

The visit by the AfCFTA delegation to Djibouti underscores the country’s growing influence as a strategic trade and logistics hub in Africa, with the potential to significantly contribute to the goals of the AfCFTA in fostering economic integration, infrastructure development, and seamless trade across the continent.