US embassy cable - 04DJIBOUTI383

UNCLAS SECTION 01 OF 02 DJIBOUTI 000383 
 
SIPDIS 
 
STATE FOR AF/E, AF/EPS, AND EB 
STATE ALSO PASS DEPT OF COMMERCE 
 
E.O. 12958: N/A 
TAGS: PREL, BEXP, DJ, EAGR, ECON, EIND, SA 
SUBJECT: CHAMBER OF COMMERCE PRESIDENT SEES U.S. BUSINESS 
OPPORTUNITIES IN DJIBOUTI 
 
1. (U) Summary:  Said Omar, President of Djibouti's Chamber 
of Commerce, advises U.S. business to consider investment in 
Djibouti by a change in mindset. He implored U.S. companies 
to think "can-do," to think about "regional" possibilities, 
to consider "Doraleh's potential," and to see the potential 
in "livestock," "agriculture," "computer chips," and "AGOA" 
as paths to economic opportunity in Djibouti.  End summary. 
 
2. (U) In an introductory call March 10 on the President of 
Djibouti's Chamber of Commerce, Said Omar, Ambassador asked 
Omar what potential advice he would give to a U.S. company 
interested in exploring business opportunities in Djibouti. 
She explained that one of her goals in Djibouti is to promote 
business opportunities and U.S. investment. 
 
3. (U) Omar responded that he would tell the U.S. company, to 
"think can-do" rather than "can't do." "Everything is 
possible in Djibouti," he said.  "Only, there are challenges 
to achieving the possible."  An American company would need 
to have a great deal of patience, be able to communicate 
effectively with people, and be prepared to explore with 
their counterparts in Djibouti real options under difficult 
circumstances. 
 
4. (U) Omar also said a U.S. company should think 
"regionally," rather than locally.  The market in Djibouti is 
rather small, he said, and the buying power is slim.  U.S. 
companies should look at investment opportunities that have 
appeal across borders.  Since there is much in common, 
culturally, with many of the citizens of countries 
surrounding Djibouti, appeals and tastes can be fairly 
similar.  Look for opportunities, he advised, where there is 
the ability to commit resources more broadly.  He noted that 
most businesses in Djbouti target the huge market represented 
by the sub-region of Africa and COMESA. For example, 
pharmaceutical products are shipped to Djibouti but airlifted 
to Ethiopia. 
 
5.(U) Third, Omar advised that U.S. businesses think about 
the potential posed by the Doraleh extension of Djibouti's 
port and the transformation of port activity that the 
extension will cause.  Already, he said, China is exploring 
setting up a free zone there to re-assemble vehicles. (Note: 
Post cannot yet confirm. End note.) He said the extension 
would make possibilities in the service and industrial 
sectors endless. 
 
6.(U) As a fourth point, Omar said he would advise U.S. 
companies to "think livestock."  He talked about the 
popularity of locally-produced (Berberawi) sheep with Saudi 
consumers and said Somali-origin livestock had been stopped 
by Saudi Arabia, not because of fear of the outbreak of 
disease in that livestock, but by concern over Somali forgery 
of export certificates and documents.  After Djibouti's 
livestock project is complete, Omar said, (in reference to 
the work USAID is doing in Djibouti),"the Chamber will invite 
livestock importers from Gulf countries to convince them to 
lift the ban on livestock." He said he believed many 
opportunities existed in the livestock field.  Admittedly, 
though, it would be difficult to make local processing 
profitable as most consumers regionally prefer their meat 
fresh-killed. 
 
7. (U) Fifth,  Omar said he would ask U.S. companies to 
"think agriculture."  He stated his belief that the soil can 
bear fruit in Djibouti.  What is lacking, he continued, is 
water. He added that the Israelis are experts in the area of 
drip irrigation and perhaps that process could be tailored to 
Djibouti, especially if desalination moves ahead. 
 
8. (U) Omar said he would also encourage U.S. companies to 
"think computer chips."  This is an area where even 
production is possible, he claimed. Omar said in passing that 
he believed advantage could be taken, additionally, of the 
Africa Growth and Opportunity Act (AGOA) to further promote 
economic investment. 
 
9. (U) Comment:  Djibouti has significant infrastructure 
development and human resource shortfalls that are daunting 
for investors. Yet Omar has a point that the potential exists 
and that creative thinking is needed to uncover opportunities 
and overcome obstacles.  Post will continue to explore 
options to share with Washington, working with the Chamber of 
Commerce, and other entities in Djibouti.  End comment. 
RAGSDALE