Djibouti: Rising Tensions As Djibouti Faces Economic Strain, Somaliland Stands Firm

The Djibouti regime is facing increasing challenges, with economic pressures mounting and a growing sense of insecurity taking hold.

The rise of Berbera port in Somaliland as a significant competitor has highlighted the vulnerabilities in Djibouti’s economic model, which has heavily relied on its port sector and Ethiopian trade.

Djibouti’s external public debt has surged from 33.9 percent of GDP in 2013 to 68 percent in 2022, driven largely by loan-financed investments in state-owned enterprises,…