Djibouti is losing its sheen The Punch
Published 14 July 2021
Djibouti is a unique country in Africa, characterised by barren lands, not much development and surprising stability in an extremely volatile region. It is strategically positioned next to the Bab-el-Mandeb, a critical maritime chokepoint. It is this significance of location that makes Djibouti a place of value for most East African nations, particularly those that are landlocked such as Ethiopia. Gaining from this position of advantage, Djibouti has the potential to grow into one of East Africa’s largest and fastest growing economies. Apart from its maritime activities, the country is also known to be generating revenue by leasing land to multiple foreign militaries.
President Joe Biden; IMage courtesy: White House Flickr/US Govt work
The Biden administration has banned U.S. investments in Chinese companies allegedly linked to China’s military, expanding hard-line policies introduced by the previous administration.
The executive order bans American citizens from investing in some of the leading defense and surveillance technology firms.
These also include the country’s shipbuilding majors: China Shipbuilding Industry Company Limited, China Shipbuilding Industry Group Power Company Limited, and China State Shipbuilding Corporation Limited. The order also targets China National Offshore Oil Corporation (CNOOC), China’s primary offshore oil and gas developer; and China Communications Construction Corporation (CCCC).