JAPAN and the WORLD Magazine JANUARY ISSUE 2016 #Issue 14 | Page 54

DJIBOUTI SEMINAR NEWS DJIBOUTI’S INNOVATIVE BUSINESS APPROACH In order to support the rapid development of the Djibouti Free Trade Zone, the government is offering a very attractive package for investors. For instance, the zone is duty free and there is no corporate tax to pay. It permits 100% of repatriation of capital and profit with no currency restriction. It also allows 100% ownership with no limitation on foreign personnel employment. The country is now embarked in rapid transformation with major infrastructure development projects underway and valued over US$ 12 billion. The latest was the completion of a 752-kilometre railway linking the port of Djibouti with landlocked Ethiopia’s capital Addis Ababa. Both countries benefit from economic integration, with Ethiopia gaining access to the sea and Djibouti gaining access to Ethiopia’s emerging market of 95 million people. JAPANESE BUSINESS PRESENCE IN DJIBOUTI Djibouti is gaining attention on the radar screen of business leaders in Japan. According to Mr. Koji Yamaguchi, president of GJK International, who has previous business activities in Africa, “to find the right place of operations in Africa is a crucial decision.” Welcome to Djibouti Free Trade Zone - Done Deal! Mr. Abubaker Omar Hadi, President of Djibouti Ports and Free Zones Authority and Mr. Koji Yamaguchi, President of New World Japan. JAPAN’S GROWING PRESENCE IN DJIBOUTI’S FREE TRADE ZONE ジブチのフリートレードゾーンに注目-日本のプレゼンス拡大 More than 170 Japanese investors and business people attended a seminar on investment opportunities in Djibouti. The event, held last December in the premises of JETRO in Tokyo, was described as a “great success” by Mr. Abubaker Omar Hadi, chairman of the Port Authority and Djibouti Free Zone. “Beside expressing interest, he said, participants are asking questions related to manpower, the costs of energy and the benefits in joining the Free Trade Zone”. ジブチへの投資の機会に関するセミナーが 昨年12月に開かれ、 日本の投資家や経済界 の代表ら170人以上が参加した。都内のジェ トロ本部で行われたこのセミナーについて ジブチ・港湾委員会・フリートレードゾーンの Abubaker Omar Hadi 長官は「大成功」だった と指摘した。同長官は「参加者は関心を示すだ けでなく、 マンパワー、 エネルギーコスト、 フリー トレードゾーン利用の利点などについて質問 を行った」 と述べた。 53 // JANUARY 2016 H is team has put together a very impressive presentation and provided detailed information in Japanese to outline Djibouti’s President, H.E. Mr. Ismail Omar Guelleh economic vision, for a small country of one million inhabitants, which is located in an exceptional geostrategic location, in the Horn of Africa, with more than 65% of the world commercial shipping fleet using its waters. Last December, he flew to Djibouti with his business partners to establish a new company called “Japan New World Corporation”. From this experience, he sai d that “he was impressed by the efficiency and how easy it was to register a company in Djibouti’s Free Trade Zone.” He used the One Stop Service whose objective is to provide all the necessary information (procedures & fees) concerning all the administrative issues such as visas, work permits, residence permits, and conversion of driving license etc.–all of that done within 48 to 72 hours. According to Mr. Yamaguchi, “it is just amazing to complete the whole registration process within 48 hours only, including the legal paperwork to incorporate the company in the Free Trade Zone, to open up a bank account and to conclude a leasing agreement for an office and warehouse facilities.” He mentions humorously that his business associates didn’t expect to have free time to relax before returning to Japan. LOOKING FOR OPPORTUNITIES IN THE REGION A panel of discussion followed with Japanese business leaders sharing their views on Djibouti. Each of them, active in different sectors, recognizes the potential of increasing its activities and access to new markets in the East Africa region. In fact, Djibouti is well positioned within the 20 states sharing a free trade area in the Common Market for Easter and Southern Africa (COMESA). Having countries in the region with high growth rate, the demand for new technologies and manufacturing products is on the rise. Because of its location, Djibouti’s officials suggest that the presence of Japanese companies in the Free Trade Zone is a strategic move. The newly created New World Japan Corp. has business relations with a major partner, Toray Corporation, a Japanese multinational that specializes in industrial products centered on technologies in organic synthetic chemistry. According to Mr. Masahiro Fujita, Toray Corp’s representative, “East Africa offers business opportunities in various sectors” For instance, his company is looking for opportunities in the filed of medical equipment and water treatment facilities. While being the president of the latest Japanese company to join Djibouti’s Free Trade Zone, Mr. Yamaguchi is aware of the networking JAPAN AND THE WORLD MAGAZINE