FTW Pick: Djibouti developments could threaten SA suppliers

The Port of Djibouti.

Plans to construct a new container terminal at the Port of Djibouti will provide impetus for the East African port’s ambitions to position itself as a trade and logistics hub for the continent.

According to a report by Reuters, Djibouti is in talks with French shipping company CMA CGM to develop a new container terminal at an initial cost of $660 million. Construction could start as early as September and is expected to last 24 months.

Duncan Bonnett, director at consultants Africa House, believes the developments in Djibouti could affect regional manufacturers in key African industrial hubs – like Egypt, Kenya and South Africa – as competition intensifies and less accessible markets are opened up.

“They will also impact ports and logistics chains in the immediate East African region,” says Bonnett.

To read the full article, and other stories from FTW, click here.

More News