Djibouti. A. Definitions and sources of data

Transcription

1 Djibouti A. Definitions and sources of data According to the Chambre Internationale de Commerce et d'industrie de Djibouti, there is no official definition of foreign direct investment (FDI). The country's Investment Code of 1988 (Law 88/AN/84), however, provides a general definition of foreign investment. Data on FDI in the country were obtained from Banque Centrale de Djibouti. In Djibouti, inward FDI is allowed without restriction, except for small crafts industries. The government grants equal treatment to investments regardless of origin. In principle there is no screening of investment or other discriminatory mechanisms. Certain sectors, most notably public utilities, are state-owned and are not currently open to investors. The Finance Ministry issues a license only to investors that possess an approved investor visa. Djibouti has no restrictions on foreign exchange or on the inflow and outflow of cash. Both residents and non-residents may hold foreign exchange accounts, and there are no restrictions on payments or transfers. Djibouti belongs to a number of regional integration schemes. It has vigorously promoted the sevenmember Intergovernmental Authority on Development. It is also a member of the Common Market for Eastern and Southern Africa, African Union, New Partnership for Africa's Development and an eligible member of the United States' market access for African countries - the African Growth and Opportunity Act initiative, the Cotonou Agreement for the renegotiation of the partnership trade agreement between the African, Caribbean and Pacific countries and the European Union (EU) and the Everything But Arms initiative. Djibouti is among the 34 African least developed countries that have the option of entering the EU generalized system of preferences and is a member of the World Trade Organization. Posting date: November 2006

2 B. Statistics on FDI and the operations of TNCs

3 UNCTAD WID Country Profile: DJIBOUTI Page 3 of 11 Table 1. Summary of FDI Variable Inward Outward 1. FDI flows, (annual average) FDI flows as a percentage of GFCF, (annual average) FDI stock, FDI stock as a percentage of GDP, Source: Based on tables 3a, 4 and UNCTAD, FDI/TNC database.

4 UNCTAD WID Country Profile: DJIBOUTI Page 4 of 11 Year Equity Table 3a. FDI flows, by type of investment, Inward investment Reinvested earnings Intracompany loans Total Equity Outward investment Intracompany Reinvested earnings loans Source : UNCTAD, FDI/TNC database. Note : FDI inflows: OECD for and , World Bank for 1999 and the Banque Centrale de Djibouti for FDI outflows: Not available. Total

5 UNCTAD WID Country Profile: DJIBOUTI Page 5 of 11 Year Equity Table 4. FDI stock, by type of investment, Inward Investment Reinvested earnings Intracompany loans Outward Investment Total Equity Reinvested earnings Intracompany loans Total Source : UNCTAD, FDI/TNC database. Note : FDI inward stock: Data prior to 2003 are estimated by subtracting inflows from the stock of 2003, are based on the Banque Centrale de Djibouti, 2005 is estimated by adding flows to the 2004 stock. FDI outward stock: Not available.

6 UNCTAD WID Country Profile: DJIBOUTI Page 6 of 11 Table 6. FDI flows in the host economy, by geographical origin, Economy Belgium / Luxembourg France Germany United States Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above. Table 9. FDI flows abroad, by geographical destination, Economy Belgium / Luxembourg France Germany Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above. Table 12. FDI stock in Djibouti by the United States, Economy United States Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the United States. Tables 23, 30, 35, 40, 45 and 50. The number, assets, employment, wages and salaries, sales and value added of affiliates of United States TNCs in Djibouti, (Number, thousands of employees and millions of dollars) Table no. Variable Number Assets Employment Wages and salaries Sales Value added a Source: UNCTAD, FDI/TNC database. Note: Data are based on information reported by the United States. a Majority-owned affiliates of United States TNCs.

7 UNCTAD WID Country Profile: DJIBOUTI Page 7 of 11 Table 88. Largest affiliates of foreign TNCs in the host economy, 2004 (Millions of dollars and number) Company Home economy Industry Sales Employees A. Industrial B. Tertiary Société de Transit et de Commerce Switzerland Wholesale trade a Anciens Comptoirs Ries Switzerland Wholesale trade 3 33 b Shell Djibouti Netherlands Wholesale trade.. 87 b Red Sea Automotive United Kingdom Wholesale trade.. 6 c DHL Worlwide Express Inc. Germany Transport.... C. Finance and insurance Assets Employees Banque pour le Commerce et l'industrie-mer Rouge France Finance a Banque Indosuez Mer Rouge France Finance d Bank Albaraka Saudi Arabia Finance.. 49 b Sources: The Banker's Almanac, 2003 (London, Reed Information Services Ltd, 2003); Thomson Analytics ( Who Owns Whom, 2003 (London, Dun and Bradstreet, 2003). a b c Estimate. d 2001.

8 UNCTAD WID Country Profile: DJIBOUTI Page 8 of 11 C. Legal frameworks for transnational corporations The legal instruments for the regulation of the activities of transnational corporations and foreign investors at national, bilateral and multilateral levels in Djibouti include: I. National framework Investment Code. Law 88/AN/84. 1er. L. of 13 February 1984 concerning the Investment Code. Source: Official Journal of the Republic of Djibouti of 29 February Law 65/AN/94. 3eme. L. concerning the Regime for Industrial Free Zones. Source: Official Journal of the Republic of Djibouti of 7 December Law No. 2517AN71982 on the Social and Economic Orientations of the Republic of Djibouti. Source: Marches Tropicaux, Fourth Trimester of Ordinance No /PR of 14 February 1980 together with Ordinance No /PR of July 1982 on the Limited Liability Companies in the Free Zone. Source: Republique de Djibouti. Chambre Internationale de Commerce et d'industrie de Djibouti. Law No. 2121AN/82 of 18 January 1982 establishing Code of Maritime Affairs Source: Law No. 52/AN/78 of 9 January 1979 concerning territorial sea, contiguous zone. EEZ, maritime boundaries and fishing Source: Restrictive Law on Port Operations, Source: II. International Framework A. Djibouti is a party to the following multilateral and regional instruments: Paris Convention for the Protection of Industrial Property of 1883 (Revised at Brussels in 1900, Washington in 1911, The Hague in 1925, London in 1934, Lisbon in 1958 and Stockholm in 1967, and as amended in 1979). Signed in Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, which entered into force on 7th June Marrakesh Agreement Establishing the World Trade Organisation of 15 April Entered into force on 1 January Agreement on Trade-Related Investment Measures. General Agreement on Trade in Services. Agreement on Trade Related Aspects of Intellectual Property Rights. Treaty Establishing the Market for Eastern and Southern Africa (COMESA), Fourth ACP - EEC Convention (Lome IV) of 1989, entered into force on 1st March Charter on a Regime of Multinational Industrial Enterprises (MIEs) in the Preferential Trade Area for Eastern and Southern African States.

9 UNCTAD WID Country Profile: DJIBOUTI Page 9 of 11 Treaty for the Establishment of the East African Community, 30 November Partnership Agreement between the Members of The African, Caribbean and Pacific Group of States, of the one part and the European Community and its member states, of the other part signed in Cotonou, Benin on 23 June Agreement for the Promotion, Protection and Guarantee of Investment Among Member States of the Organization of Islamic Conference of I June 1981; entered into force on 23 September Articles of Agreement of the Islamic Corporation for the Insurance of Investment and Export Credit of 19 February Entered into force on 1 August Unified Agreement for the Investment of Arab Capital in the Arab States of Convention Establishing the Inter-Arab Investment Guarantee Corporation of May Entered into force in April B. Bilateral treaties 1. Bilateral investment treaties for the protection and promotion of investments: Egypt 1998, Malaysia 1998, Switzerland Bilateral treaties for the avoidance of double taxation:..

10 UNCTAD WID Country Profile: DJIBOUTI Page 10 of 11 D. Sources of information Official Ministry of Finance ( Chambre Internationale de Commerce et d'industrie de Djibouti ( Secondary Economist Intelligence Unit (EIU) (2002a). Country Profile: Djibouti (London: EIU Ltd.). (2002b). Country Report: Djibouti (London: EIU Ltd.), September. (2005a). Country Profile: Djibouti (London: EIU Ltd.). (2005b). Country Report: Djibouti (London: EIU Ltd.), September. International Monetary Fund (IMF) (2006). IMF's Sub-Saharan Africa Regional Economic Outlook, March 10, (Washington D.C.: IMF). Morisset, J. (2001). "Foreign direct investment in Africa: policies also matter", OECD Global Forum on International Investment (Paris: OECD). Nabli, K., Mustapha (2003). "Challenges to private investments in the middle East, North Africa Region (MENA)" (Washington D.C.: World Bank-MENA). Soderbom, M. and F. Teal (2004). "Size and Efficiency in Africa Manufacturing firms: Evidence from Firm-Level Panel Data." Journal of Development Economics, 73. pp United Nations Conference on Trade and Development (UNCTAD) (2002). FDI in Least Developed Countries at a Glance (Geneva: UNCTAD) ( pdfs/countries/chad.pdf). (2005a). Investor-Disputes Arising from Investment Treaties: A Review. UNCTAD Series of International Investment Policies for Development (UNCTAD/ITE/IIT/2005/4). (2005b). A Survey of Support by Investment Promotion Agencies to Linkages. Advisory Studies No. 18 (UNCTAD/ITE/IPC/2005/12). (2005c). FDI in least developed countries at a glance: 2005/2006 (UNCTAD/ITE/IIA/2005/17). United States Department of State, Bureau of African Affairs (1995). "Investment climate report: sub- Saharan Africa" (Washington D.C.: United States Department of State). United States Trade Representative (2006) Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the Africa Growth and Opportunity Act: The Sixth of Eight Annual Reports, May (Washington D.C.: US Government). World Bank (2002a). Global Economic Prospects and the Developing Countries 2003: Investing to Unlock Opportunities (Washington D.C.: World Bank). (2002b). Global Development Finance: International Finance and the Poorest

11 UNCTAD WID Country Profile: DJIBOUTI Page 11 of 11 Developing Countries (Washington D.C.: World Bank). (2003). "Djibouti: Les progrès du développement", Note de presentation Middle East and North Africa Region (Washington D.C.: World Bank-MENA).