US embassy cable - 05DJIBOUTI1068

C O N F I D E N T I A L DJIBOUTI 001068 
 
SIPDIS 
 
STATE FOR AF, AF/E, AND DRL; 
PARIS AND LONDON FOR AFRICA WATCHER; 
 
E.O. 12958: DECL: 10/25/2015 
TAGS: ELAB, ENRG, ELTN, PHUM, PGOV, ECON, ETTC, SOCI, DJ 
SUBJECT: THIRD DAY OF BUS STRIKE ENDS IN VIOLENCE 
 
Classified By: Pol/Econ Erinn C. Stott for reasons 1.4 (b) and (d). 
 
1. (C) Djibouti is experiencing its fourth day of its longest 
general strike in the public transportation sector. Bus, 
mini-bus, and taxi drivers' unions began striking on 
Saturday, October 22nd, protesting the higher cost of fuel 
and insurance. The strike has paralyzed the country, whose 
population is heavily dependent on public transportation, for 
the past four days. The unions demands were that the 
Government either lower the cost of fuel or allow the drivers 
to raise their prices. Negotiations were started on Oct. 22nd 
between the unions and the Ministers of Finance, Interior and 
Transport. An initial, but temporary, agreement was reached 
to end the strike after the Minister of Finance, Ali Farah 
Assoweh, explained to the unions that the international 
market determines the price of oil. He also estimated the 
Government of Djibouti has lost nearly 500 million Djibouti 
Francs (3 million USD) since the beginning of the oil crisis 
because it has tried to maintain the price of fuel as low as 
possible. The two parties agreed to meet again for further 
discussions on October 24th. However, the unions continued 
striking the following morning.  The second day of the 
strike, October 23rd, saw fairly peaceful demonstrations by 
students who were angry at the strikers because students and 
teachers alike could not get to school. 
 
2. (C) The strike continued on to a third day, October 24th, 
fueled by additional concerns about the recent rising costs 
of fuel, staple foods, electricity and most necessary 
commodities. Protests in the city center the morning of the 
third day ended in violence when police were overwhelmed by a 
increasingly large and agitated crowd of about 300 that 
joined with the striking drivers to protest the rising cost 
of goods and fuel. Protesters threw rocks and used slingshots 
against the approximately 20-30 National Police officers that 
were sent to the scene. Seven police officers were injured by 
rocks thrown. Before riot police could arrive on scene the 
officers present were overwhelmed by the crowd and several 
officers were taken by protesters into the crowd.  In 
attempts to defend the officers taken into the crowd and 
prevent further injuries to themselves, police officers fired 
shots at the protesters. Two protesters were hit; one 
survived his wound, the other was killed immediately by the 
bullet. Three of the seven officers injured were seriously 
wounded and are still in the hospital. 
 
3. (C) In a joint press release, the Ministries of Finance, 
Interior and Transportation stated "all measures have been 
taken to ensure the continuity of public service." The 
Government has ordered the Forces Armee Djiboutian (FAD) and 
the Police Nationale (FNP) to activate bus shuttles using 
army and police resources to serve the busiest bus routes. 
 
4. (C) Comment: The rising prices are all directly or 
indirectly linked to the high cost of oil. Since oil prices 
began climbing the cost of cooking fuel, gasoline and diesel 
made it difficult for the average Djiboutian to afford basic 
necessities. Because all of Djibouti's food staples and basic 
commodities are imported by sea or by land, mainly by land 
from Ethiopia, shipping companies are forced to charge more 
for transporting the goods and in turn the suppliers to the 
Djiboutian market must charge higher rates for even basic 
staples of the Djiboutian diet like rice, beans, and flour. 
Kerosene and Butane, the two main sources of cooking fuel, 
are increasingly hard to come by in the capital city. Some 
shops no longer have any to sell. Electricity prices have 
gone up 19 percent since the oil prices began rising. 
Electricite de Djibouti (EDD) has said the prices will remain 
at this elevated level until the cost of oil lowers to more 
normal levels. Many Djiboutians believe the Government must 
do something about the rising cost of goods, despite the 
international market prices. Some Djiboutians expressed 
wonder that President Guelleh would travel during such a 
major crisis as the transportation strike. Guelleh departed 
October 24th for Mecca to make an Oumra (minor pilgrimage) 
and to meet with King Abdallah Bin Abdulaziz on October 26th. 
Reports are saying the Government and unions reached an 
agreement late on October 25th. Post will follow up with 
reports on official terms of the agreement. End Comment. 
RAGSDALE