Djibouti is one of the smallest states in Africa and is home to the largest number of foreign military bases in Africa, including the United States, France, Great Britain, Japan, Saudi Arabia, and China. The country’s economic outlook remains positive, despite being impacted by the COVID-19 pandemic, with opportunities to develop major sectors of the economy and attract FDI in other industries such as renewable energy, tourism, and digital services, amongst others, to boost its economic growth.
As many organisations expand their international reach, they look for ways to minimise the hassle of understanding and managing complex local matters relating to legal requirements, cultural norms and labour policies. A popular solution is to engage the services of reliable local partners who specialise in business process outsourcing, including employment outsourcing solutions where resources need to be employed in-country and paid accordingly.
If you’re looking to expand into Djibouti, Africa HR Solutions provides the Djibouti HR outsourcing services required to facilitate your plans. We provide a range of employment outsourcing solutions in Djibouti, including services such as Professional Employer Organisation (PEO), Employer of Record, payroll outsourcing, and ancillary support services. Our in-country specialists ensure that our services are legally compliant take into account the cultural practices and market norms applicable to our clients’ industries.
Country Profile - Djibouti
Population: 1 mn
Gross Domestic Product (GDP): $3.38 bn
GDP Growth: 6 %
Inflation: 3.48 %
Foreign Direct Investment (% of GDP): 0.1 %
Unemployment Rate: 11.1 %
Capital: Djibouti City
Currency: Djiboutian franc
Languages: Arabic, French
The economy is driven by a high-end port complex, one of the most sophisticated in the world. The port is an efficient channel to trade, given Djibouti’s largest and major trading partner is Ethiopia. The main natural resources of Djibouti that can be maximised are tourism, marine resources yet to be tapped to support artisanal fishing, telecommunication cables under the sea, digital and service sectors, as well as renewable energy that can be a new driver of growth for the economy considering the fact that Djibouti has huge potential in geothermal, solar, and eolian transformation.
Interesting Facts About Djibouti
The national animal is the Elk.
The country receives around 73,000 visitors yearly.
Football is among the most popular sport in the country.
Djibouti has 195 miles of coastline, consisting of gold and white sandy beaches.
The country has a semi-arid climate which is very hot and dry.
Located in eastern Djibouti, the Gulf of Tadjoura is one of the richest areas in the world for coral and fish species.
Skudahkharis is considered the national dish of Djibouti, made of rice, lamb, and cardamom.
Public Holidays in Djibouti
New Year’s Day
Ascension of the Prophet
Independence Day (2 day
Islamic New Year
Birth of the Prophet
Employment in Djibouti
Djibouti is a stable country located on the horn of the African continent with Ethiopia as its major trading partner, with main exports including hides, salt, coffee, beans, and cereals. Djibouti is also investing in various service industries to develop its economy further and create more employment opportunities.
Employees are eligible for sick, vacation, and parental leave. Probation periods depend on the type of job position and the contract type. Regarding termination, indefinite term contracts may be ended due to misconduct, force majeure, tough economic situations, court orders, and a written agreement on both sides. Individuals pay income taxes from 2% to 30%, depending on their monthly income. Both employers and employees pay 4% of their monthly salary to social security. Employers additionally contribute 6.2% of monthly salaries to disability insurance and 5.5% of monthly salaries to family allowances.
Engaging the services of Africa HR Solutions will enable you to focus on growing and streamlining your business in Djibouti by deploying a proven HR outsourcing strategy. We deliver all relevant employment outsourcing and payroll procedures in accordance with the applicable legal requirements and customary practices, including devising an attractive employee benefits scheme for your local national and/or expatriate resources.
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