US embassy cable - 04DJIBOUTI1238

UNCLAS SECTION 01 OF 02 DJIBOUTI 001238 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, ECON, EINV, SENV, DJ 
SUBJECT: DJIBOUTIAN-AMERICAN FISHING COMPANY LOOKING TO 
EXPAND EXPORT 
 
 
1. (U) Summary: The fishing sector in Djibouti has a new 
advocate in the form of Djibouti Maritime Management and 
Investment Company (DMMI), a joint venture owned in majority 
by Iranian-American investor Mehrdad Radseresht and 
Djiboutian businessman Youssouf Moussa Dawaleh. DMMI seeks to 
maximize the existing human and natural resources available 
to the fishing industry by providing the necessary services 
to local fishermen to get their catch to market, be it 
Djiboutian or export. End Summary. 
 
2. (U) DMMI was created in March 2004 after Youssouf Moussa 
Dawaleh, owner of the Pecherie de Boulaos (Boulaos Fish 
Market) and Parliamentarian from the Djibouti district, was 
tasked by President Ismael Omar Guelleh to turn the fishing 
port into a viable business entity.  It was originally built 
in 1997 by an Italian company with the aid of a French 
company's expertise.  Neither company used European 
standards, which in conjunction with the poor management of 
the fishing port rendered it unable to attract international 
buyers.  During Dawaleh's travels with President Guelleh, he 
met Mehrdad Radseresht, an Iranian-American investor based in 
the Middle East, and they decided to combine efforts to 
rehabilitate the fishing port.  DMMI is primarily owned by 
Radseresht at 55 percent, Dawaleh owns 40 percent and Port de 
Peche manager, Herve Prat, owns 5 percent.  DMMI was set up 
as a Free Zone company, allowing it duty free status, and 
given a 40-year concession for the lease of the Port de Peche. 
 
3. (U) DMMI's strategy is to maximize the existing human and 
natural resources in order to increase yearly production from 
500 tons to 2,000-3,000 tons per year.  Prat told Pol/Econ 
that the traditional fishing methods used by the fishermen in 
Djibouti are extremely well adapted to the environment and 
DMMI does not want to interfere with that method, merely 
enhance their capacity.  According to Prat, Djibouti has a 
fleet of 150 fishing boats, of which half are not operational 
or idle.  DMMI's plan is to rehabilitate the Port de Peche, 
provide an adequate place to anchor boats, provide free ice 
and duty free fuel and a cafeteria for the local fishermen. 
This will give the fishermen a comfortable and friendly place 
where they know they will have a market for their catch. 
Prat said that Port de Peche also has a fully equipped boat 
maintenance workshop that was funded by the United Nations 
Development Fund.  However, Prat said the project has 
remained locked and untouched because the Ministry of 
Agriculture has not yet named who will manage the workshop. 
 
4. (U) Well-equipped, DMMI's packing/processing operation 
sells fish to the Djiboutians and French ex-patriates and 
hopes to attract the American presence to their business as 
well.  Prat spoke frankly about the situation of fishing in 
Djibouti and presented realistic goals for the project. 
First, satisfy the local markets then move to the Arabian 
peninsula, where regulations are not as strict and air 
traffic connections already exist.  Prat said the African 
Development Bank is planning to fund the necessary upgrades 
to bring the port up to international standards, as well as 
build a lab for testing the fish.  According to Prat, a lab 
is not necessary for the moment and samples can easily be 
sent to France regularly for testing.  Prat did comment that 
the cost of production in Djibouti is forcing DMMI to use 
high margins to price their products. 
 
5. (U) The next phase of the plan to promote the already 
existing fishing industry in Djibouti is procuring a boat to 
provide access to the market for the fishermen in the 
northern region of the country.  The districts of Tadjourah 
and Obock have plentiful fishing waters and make up the 
majority of Djibouti's coastline.  However, both districts 
have extremely poor road infrastructure and a three to five 
hour drive to the capital.  By creating a boat service that 
can go to the fishermen, gather a daily catch and bring ice 
to the fishermen, this will allow greater access to the 
market for an underdeveloped region.  Prat specified that the 
boat would have to be designed to be fast, haul up to 6 tons 
each trip and be able to carry heavy loads of ice and living 
shellfish. 
 
6. (U) Prat asked Pol/Econ about the possibility of U.S. 
assistance for the project, in particular the funding and 
procurement of the boat.  Pol/Econ said she would look into 
the different programs available in the different agencies of 
the U.S. Government and would be happy to assist in making 
any business liaisons needed.  Prat also mentioned the idea 
of providing Camp Lemonier with locally caught fish. 
Pol/Econ explained the procedure of DOD procurement through 
the Defense Logistics Agency and offered to find contact 
information for the person who could arrange an inspection of 
the facilities in order to get DMMI certified as an 
authorized vendor. 
RAGSDALE