Will China be involved in Djibouti's new multi-purpose port?

U.S. officials have raised concerns about China’s role in Djibouti’s new Doraleh Multi-Purpose Port, a joint project with state-owned China Merchants Port Holdings that is adjacent to new Chinese military facilities. One of the port’s berths is reportedly slated for use by the PRC navy.

Will Djibouti's berths be used by the PRC navy?

One of the port’s berths is reportedly slated for use by the PRC navy. In 2018, Djibouti terminated its partnership with Dubai’s DP World, which had built and run the Doraleh Container Terminal (DCT) for almost a decade.

What is China doing in Djibouti?

For more on the country, see CRS In Focus IF11303, Djibouti. China’s engagement in Djibouti is emblematic of its broader shift toward a more expansive foreign policy, including in Africa, under Chinese Communist Party General Secretary and State President Xi Jinping.

How much money has China provided for infrastructure projects in Djibouti?

China reportedly has provided nearly $1.5 billion in financing for major infrastructure projects in Djibouti since 2000. Among the projects being built by Chinese firms is a $3.5 billion free-trade zone (FTZ), expected to be Africa’s largest.

What Chinese-backed projects are being built in Djibouti?

Other Chinese-backed investment projects include the development of port facilities and related infrastructure, including a railway and two airports (a $420 million contract) and a pipeline to supply Djibouti with water from neighboring Ethiopia (a $320 million contract).

How does Djibouti make money?

Djibouti’s economy depends heavily on trade through its busy international port complex, and profits from shipping and land leases are important revenue sources for the government. For more on the country, see CRS In Focus IF11303, Djibouti.