DJIBOUTI: Investing in the knowledge economy of Djibouti

Djibouti is a small country in East Africa with a population of about 800,000 people, one of the smallest in Africa. The recent boarder tension with Eritrea nearly destabilized the country but everything is generally calm now. Though the economic prospect of Djibouti is great, the African canker of 'ruling non-stop' is still prevalent over this country too. The president, Ismail Omar Guelleh, was reported to have shut down the only opposition news paper firm in the country making Djibouti one of the countries in Africa without a private news paper. And during the last elections, he was said to have banned opposition parties for holding any rally, an infringement on the political rights of his fellow country men. Despite these, the country is politically stable and the economic environment is free for investment.

Economically, GDP growth has been estimated to 7% this year and this has been made very possible by the country's vibrant port activities, which is heavily financed by the Arab world. There are other prospects too, like banking, tourism, transport services, telecommunication (this is doing so well), mining, as well as oil amidst many others. But, among all this great prospects, the number one priority of government is to build a formidable knowledge economy in the Djibouti.

The educational sector alone consumes about 23.8% of the state budget making it the highest and by 2015 it is priority of government to increase expenditure on education to 30%. So much is emphasized on education that a high school graduate who takes up the teaching profession earns more money than a master civil servant. Also teacher from a high school with four years of tertiary educational experience is entitled to a salary amount which is equal to that of a senior civil servant who has maintained the position for fifteen years. It is said that, when recruiting employees for education, the Ministry of Education receives ten applications for one position.

University education was just recently introduced, which started with 400 students in 2000-2001 but today over 2,000 students are recorded on the campus of the University of Djibouti.

Before President Ismail took over power in 1999, the educational situation was very bad in the country. For example, there was only one high school for all students in the country and worse enough; the system of education in Djibouti did not offer a tertiary education. Students who managed to finish high school were sent abroad to continue their education in tertiary institutions and this cost the government $6million annually. It was recorded, out of every four students sent abroad, only one returned home upon completion due to lack of professional opportunities in the country. But the situation is far better now than then, with the University of Djibouti now absorbing most of the students. Though it has been a prosperous journey from 1999 to 2009, some 716 (and may be more) students have been sent abroad to pursue courses that are not taught in the University of Djibouti. This will further perpetuate the brain-drain malady that sifts the intellectual vitality of the country due to lack of available professional work opportunities that should welcome these students back home to serve the purposes for which their government made their education a priority.

This means, an opportunity for African investors. If people can invest into Djibouti's educational sector a mouth-watering dividend is assured not just in terms of moral fulfillment but in monetary terms too.

Another opportunity within the Djiboutien educational sector is vocational and technical training centers. It was estimated in 1999 that out of 100 persons who enrolled in primary education only 8 succeeded to the final year in high school. 92 students dropped out of school; 60 before Junior High School and 32 after high school. This means that the 92 students who dropped out, and I believe some still do, will need their inherent skills polished up to drive forward Djibouti's secondary industry prospects. These can create jobs; the spirit of entrepreneurship will be activated among these students who without options may be forced to start-up their own businesses out of either the skills they acquired or developed through this vocational and technical training experience. Any investor who takes up this opportunity of opening vocational and technical training centers will break even and will receive the full support of government.

Now you think about it, with a very poor state of Djibouti's educational sector there is a moral call on investors to release the developmental powers within the minds of every student in Djibouti as well as tap into the unexploited gold mine of the nation's knowledge economy as a material reward for a work well done. After all, the only way to enjoy rest is to work for it.

Fidel Y. Tetteh (Modern Ghana)