US embassy cable - 05DJIBOUTI9

UNCLAS DJIBOUTI 000009 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD, EFIN, ECON, EAID, PREL, PGOV, EAGR, DJ, RW 
SUBJECT: DJIBOUTI TO HOST COMESA SUMMIT IN 2006; RWANDA IN 
2005. 
 
REF: A. DJIBOUTI 08 
     B. 2004 DJIBOUTI 958 
 
1. (U) In the Ambassador's January 2 meeting with Djibouti's 
Minister of Commerce and Industry, Saleban Omar Oudine 
(reported Ref A), the Minister told the Ambassador that 
Djibouti and Rwanda have switched dates for hosting the 
annual Common Market of Eastern and Southern Africa (COMESA) 
summit. Djibouti will now host the summit in 2006 (vice 
2005), and Rwanda will host the summit in 2005 (vice 2006). 
The reason for the change rests in Djibouti's inability to 
provide adequate infrastructure, especially hotels, in time 
for this year's summit. 
 
2. (U) The Minister said he believed the decision to switch 
the dates was a "wise" one, because it would be difficult for 
Djibouti to focus on the necessary infrastructure 
improvements as both presidential and regional elections are 
slated to take place in the spring of 2005. Post notes the 
decision despite backroom politicking by Djibouti to host the 
summit before Rwanda (reftel B). Oudine added that the 
inability to show off the Dorale port and the Djibouti Free 
Zone, which are slated to become fully operational this 
summer, was "disappointing." 
 
3. (U) The Minister highlighted the popularity of the new 
Dorale port in other COMESA countries. At a recent conference 
in Kampala, several Ugandan businessmen expressed interest in 
using the Free Zone for imports and exports. Oudine did not 
specify the businesses, but hypothesized they would likely 
use Uganda airways as the transport link for cargo between 
Uganda and Djibouti. He said this is an attractive option 
because companies currently using the Port of Mombassa for 
imports and exports lose about 20 percent of their product 
annually due to graft and damage. 
 
4. Minimize considered for Bujumbura and Khartoum. 
RAGSDALE