Research Journal Social Sciences, Vol 18, No.1, 2010

India and Djibouti in theIndian Ocean Geopolitics

Khalid Mohammed

Abstract: Small but strategically located, Djibouti is an important state in the

Horn of Africa. It dominates the busy shipping lanes of the Bab el Mandeb. Politically stable, its economy largely depends on its ports which provide trade outlet to neighbouring land locked Ethiopia. Presence of French, American and Japanese military contingents on its soil speak volumes of its strategic importanc. India has a long history of trade with Djibouti. Over the years both have developed multifaceted relationship. India’s trade with Europe, Mediterranean and Arab world depends on the Bab al Mandeb. To protect its trade and economic interests and to associate with US in its war against terror, India regularly sends combat ships and conducts naval exercises near Djibout. The paper explores India’s relations with Djibouti in the overall geopolitics of the Indian Ocean.

Formerly known as French Territory of the Afars and the Issas,

Republic of Djibouti lies in the Horn of Africa. Strategically located on the

busy shipping lanes of the Bab el Mandeb, --the strait that links the Red Sea

with the Gulf of Aden-- it has an area of about 23,200 sq km. Djibouti has

land boundaries running for 516 km. Bounded on the southeast by Somalia

for 58 km, on the south and west by Ethiopia for 349 km, and on the north

by Eritrea for 109 km. The Country has a coastline of 314 km in the Gulf of

Aden at the southern entrance to the Red Sea (Saint Veran, 2010). Djibouti

has 16 islands scattered in the Gulf of Aden and Gulf of Tadjoura providing

it important seaward extensions capable enough to monitor and control the

Red Sea traffic. These islands are intensely important to the extent that the

neighbours have lustful eyes to grab them. Border row between Djibouti and

Eritrea over the disputed Ras Doumeira promontory on the shores of the

Red Sea have flared up time and again since 1996 which provide enough

proof of its strategic location. (IBRS, 2008) The Gulf of Tadjoura provides

Djibouti important ports of Obock, Tadjoura and Djibouti. Location of these

ports has turned it into a regional hub for the Red Sea and

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Indian Ocean --and in a wider context for the three continents of Europe, Africa

and Asia. Its container terminals on ports operating since February 1985, have

added to its importance in the region. Djibouti already handles 4 million tones of

containers trade.

Geopolitical importance of Djibouti is further enhanced as neighbouring

Ethiopia relies on it for a secure trade corridor and access to the Red Sea. During

its hostilities with Eritrea in 1998-2000, Ethiopia was denied access to the

Eritrean port of Assab. This rendered land locked Ethiopia totally dependent on

Djibouti to handle its imports and exports, including huge shipments of U.S. food

aid during the drought and famine in 2000. The Addis Ababa-Djibouti railroad is

the only line serving central and southeastern Ethiopia and possibility is being

explored to build an additional rail line from Djibouti to increase its trade

connectivity with sea ports.(Sudan Tribune, 2010)

Djibouti has a population of 516,055 according to 2009 estimates and it

belongs to Somali, Afar, Ethiopian, Arab, French, and Italian ethnic stocks. About

two-thirds of Djibouti's inhabitants live in the capital city. Among the 15,000

foreigners residing in Djibouti, the French form the major chunk including its

approximately 3,000 troops. About 94% of the population is Muslim and 6%

Christian. French and Arabic are the official languages while Somali and Afar are

widely used. Country has a literacy rate of 67.9%.

Djibouti's economy depends largely on its proximity to the large Ethiopian

market and a sizeable foreign expatriate community. Its main economic activities

are the Port of Djibouti, the banking sector, the airport, and the operation of the

Addis Ababa-Djibouti rail line. The country had to divert significant budgetary

resources from developmental and social services to military needs during the

civil war (1991-94) and after. However, from 2001 on, Djibouti has attracted

private sector capital investment of about US$200 million per annum. Djibouti

had an estimated GDP of $982 million in 2008 and a per capita income of

US$3,700. About 89% of its land is arid, unproductive, desert wasteland, 10% is

pasture, and 1% is forested. Agriculture contributes less than 3% to its GDP and

produces livestock, fishing, and limited commercial crops, including

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fruits and vegetables. The country has natural resources like salt, gold, gypsum,

limestone and energy resources such as geothermal, wind, and solar. Mineral

deposits exist in the country, but with the exception of an extraordinary salt

deposit at Lake Assal (the lowest point in Africa) they have not been exploited.

Banking and insurance sector contributes 12.5% to the GDP while construction

and public works, manufacturing, commerce, and agriculture contribute 22%.

Imports to Djibouti accounted for $1.555 billion in 2006 and they consisted of

basic commodities like food and beverages, pharmaceutical drugs, transport

equipment, chemicals, and petroleum products. The country exported goods worth

$340 million which included hides and skins, and coffee etc. Major markets for its

trade are France, Ethiopia, Somalia, India, China, Saudi Arabia and other

countries of Arabian Peninsula.

Europeans have been attracted to Djibouti since late 19th century and

conceived it as a strategic base at the mouth of the Red Sea. The recent wave of

international terrorism, has given a new meaning to Djibouti as a strategic

location near the world's busiest shipping lanes and the Arabian oil fields. Being

part of the direct crossing point between Middle East and East Africa, Djibouti is

feared to serve well as a transit point for terrorists, pirates and weapons in both

the directions.8 To bring Djibouti closer to the Arabian Peninsula (thus joining

Asia and African continents), a 29 km long Bridge of the Horns is proposed to be

constructed at an estimated cost of US$20 billion. The Bridge between the coasts

of Djibouti and Yemen across the Bab-el-Mandeb will provide connectivity

between the two continents. Strategic importance of this sea bridge stems in part

from the geopolitical importance of the site of Yemen and Djibouti on the map of

regional and international interactions on the Red Sea. It will promote the

movement between the Asian and African coast and strengthen the social and

economic ties between Yemen and Djibouti smoothening the movement of the

Gulf and African capitals, which is likely to make Djibouti an economic bridge

between Africa and investors from the Gulf. (Yemen Times, 2008)

It is due to its strategic importance that Djibouti serves as the

headquarters for the European Union’s “Atalanta” naval task

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force combating piracy off the coast of Somalia. Djibouti is one of America's

many outposts in war against terror. It houses part of Pentagon's new African

Command consisting of 1,500 U.S. sailors, soldiers, airmen, Marines and Special

Forces at Camp Lemonier, a naval expeditionary base outside the capital, since

2003. US naval vessels and aircraft use Djibouti's facilities, and the two countries

perform joint military exercises. United States gave it US$7 million as military

and economic aid in 2000. This included $2.7 million in emergency food aid, $2

million to start a humanitarian programme and $100,000 for self-help, democracy

and human rights. This presence is focused to help impoverished Djiboutian

population lest they fall into the anarchy of neighboring Somalia. United States

fears that its grinding poverty, no solid economic or political foundations, and

next-door Islamist extremists who want this as another base for themselves, may

not fall prey to terrorist networks. The US presence is aimed to prevent Al Qaeda

and other terrorist groups from accessing Yemen, Somalia, Eritrea, Kenya, Sudan

and Ethiopia. The country retains close relations with France and other Western

nations as well as with Islamic states. Djibouti is France's largest foreign military

base and hosts several thousand French military personnel, including the 13e

Démi-Brigade de la Légion Étrangère (13e DBLE - 13th Half-Brigade of the

Foreign Legion). A small Japanese naval contingent is also deployed as part of an

international flotilla battling Somali pirates. To check terrorism and piracy,

France and U.S. have (intelligence) ‘listening posts’, in Djibouti.

Apart from European powers, China has diplomatic presence in Djibouti

since 1979. Various high level visits have taken place between the two countries

during the last three decades. They signed an agreement on economic and

technical cooperation. China has provided Djibouti with aid projects including the

People's Palace, a stadium, an outpatient building, housing projects, and the office

building of its Ministry of Foreign Affairs. China's has recently built up schools in

several Djibouti villages. After 1982 till about June 2002, China and Djibouti had

signed about 478 contracts for service cooperation. China and Djibouti signed an

Agreement on Trade and the volume of trade between the two countries stood at

US$ 49.83 million in 2002, of which China's exports accounted for

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US$49.81 million, and imports US$20,000. Japan too had established diplomatic

relations with Djibouti on 27 June, 1977 --the day Djibouti was recognized as a

State. Japan has so far doled out grants worth 19.1 billion yen, has spent 2.1

billion Yen in form of technical cooperation, and 102 million yen as cultural grant

in Aid. Djibouti imported automobiles worth 5,231 million yen from Japan in

2006.

Djibouti seeks to play a stabilizing role in the usually tense regional

politics of the Horn of Africa. The Country hosted UN-sponsored Somali

reconciliation talks in 2008-2009 (the “Djibouti Process”), and provided military

training for Transitional Federal Government (TFG) troops of Somalia in late

2009. Djibouti’s relations with Eritrea have become strained after a military

confrontation in June 2008 along their shared border. The situation remains at an

impasse, despite international condemnation of Eritrea’s continued occupation of

Djiboutian territory in Ras Doumeira area.

Djibouti is a member of the League of Arab States (LAS) and the

Organization of the Islamic Conference (OIC), as well as the African Union (AU),

the Common Market for Eastern and Southern Africa (COMESA), and the

International Organization of Francophones (“Organisation international de la

Francophonie,” or OIF). In 1996, the Intergovernmental Authority on

Development (IGAD- an organization for regional cooperation and economic

integration), established its secretariat in Djibouti. The country is also a member

of the East African Standby Brigade Coordination Mechanism (EASBRICOM),

which is currently commanded by a Djiboutian general. The role of Djibouti has

grown in international diplomacy as a bridge to other countries of the Horn of

Africa and between African and Arab states.

India-Djibouti relations India has a long history of relationship with the lands and the people of Horn of

Africa. Indian traders and sea farers have been traversing the waters of north-

western Indian Ocean for centuries. Traders from Gujarat and Kerala frequently

visited port of Adulis for trading in spices and silk for gold and ivory. There

presence in the ports of Berbera, Yemen, and Djibouti are well recorded in the annals

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of history. Indian cultural influences contributed notably to the social life of

Djibouti along with the cultures of East Africa, and the Arab peninsula. Relations

between the two countries began when in 1910 about ten Indians went to Djibouti

and initiated shipping and import business. The Indian community in Djibouti at

present is around 600 persons and about 100 of them are French nationals of Indian

origin. Majority of them belong to Gujarat (Rajkot and Jamnagar) and Kerala. Most

Indians are involved in trading and agency business representing companies from

India, China, South Korea, and Taiwan. Some of them work as corporate employees

holding positions in accounts and management, computer programmers, etc. The

companies involved in ongoing Doraleh Port Project have also engaged a number of

Indian experts and technicians. Many Indians are also working in the Djibouti port

and refinery project.

Much before its independence in 1977, India had appointed its Honorary

Consul to Djibouti in 1969. Djibouti opened its Embassy in New Delhi in 2004 and

a Consulate in Mumbai in 2006. To invigorate cultural relations, both signed a

Cultural Cooperation Agreement on 31st January 1989. After 2002, both the

countries felt the need for greater cooperation in different fields. In May 2003

President of Djibouti visited India along with other ministers and a 30 member

business delegation. The visit not only opened up opportunities in many areas of

mutual interest but also enhanced contacts, business linkages and bilateral relations.

During the visit both the countries signed Bilateral Investment Promotion and

Protection Agreement (BIPPA), Civil Aviation Agreement, and Executive

Programme of Cultural, Education and Scientific Cooperation for the year 2003-

2005 at New Delhi on 19th May 2003. In June, 2006, India’s TCIL and Djibouti

signed Pan-African e-Network Agreement. India is an emerging economic and

naval power in the Indian Ocean region where Somalian coast is increasingly

becoming infested with the pirates. To protect its trade and commerce interests

Indian naval ships keep calling on the ports of many of the countries of east Africa

and patrol the Ocean near Somalian coast and the Gulf of Aden. To demonstrate its

presence in the area, Indian naval ships have been calling at Djibouti ports since late

sixties. Indian naval ship INS Brahma Putra called at

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Djibouti port in May 1967, INS Gharial in March 1970, INS Mysore in January,

1973.

In the recent years Indian naval ships INS Sindhuraj called at Djibouti port

in January 2002, INS Sindhuratna in November 2002 INS Tarangini from 10

February to 14 February, 2003 and again in May 2005. INS Talwar visited there in

August 2003 and INS Dunagiri in May 2004. A naval flotilla consisting of INS

Viraat, INS Mysore, INS Godavari, INS Shalki and INS Aditya visited Djibouti

under the command of Rear Admiral R.A. Contractor in November 2005 and held

joint exercises codenamed “Varuna 05” with French Navy. Commander of the

Armed Forces of Djibouti visited India in October 2003. Indian and Djibouti based

French Navy took part in "Varuna 07", a sea and air military exercise from 11 till

19 September 2007 offshore Somali coast and in the Gulf of Aden. Indian guided

missile frigate INS Beas visited Djibouti on May 4 to May 7, 2009, after conducting

exercises with their navy. Djibouti therefore has been a focus of attention for Indian

Government and call for exploring its relations with India.

Economic relations

In the recent years Djibouti has shown its keen interest to develop economic

partnership with India and to learn and receive assistance especially in areas of

education, information technology, agriculture, small scale industries, and portable

electricity generating units, fisheries, and water resource development. After its

President’s visit to India in 2003, economic and commercial relations picked up

momentum. India agreed to provide an EXIM Bank Line of Credit of US$ 10

million and both felt the need to create institutional mechanism such as a Joint

Commission to strengthen bilateral relations. India is setting up a Cement Project in

Ali Sabieh under the agreed credit limit and exploring the possibility to transform

Lake Abbe --a chain of six connected salt lakes at Djibouti-Ethiopia border-- by

developing a chain of chemical industries to produce caustic soda. India has offered

assistance in areas such as setting up Tool Centres in different parts of the country

where small tools could be produced. It has agreed to provide training to Djibouti

nationals for small and medium scale enterprises to acquire

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skill for using the tools. India’s IRCON has conducted feasibility study for

rehabilitation works of rural electrification in Djibouti and Kirloskar have supplied

generator sets for power production. (Somaliland Times, 2007)

Trade and Investment

Most of the trade between India and Djibouti is conducted primarily by the

small Indian community. The major items exported by India are iron and steel

products, paper and plastic products, machinery, metals, yarns and fabrics, food

items and drugs and pharmaceuticals. Main imports to India include raw hides and

skins, metal scraps and leather. After 2003 trade relations between the two countries

have picked up considerably as export to Djibouti increased by 68% (US$ 72.9

million) during April 2003-March 2004 as compared to US$ 37.2 million during the

corresponding period of 2002-2003. India‘s exports account for 17.8% of

Djibouti’s imports and its imports from Djibouti were US$ 0.81 million and US$

1.2 million during the period 2002-2003 and 2003-2004 financial year respectively.

An Indian construction company, Patel Engineering Works bagged nearly

$1 billion (about Rs. 4,600 crore) order for building a 350-km highway connecting

Djibouti border to Ethiopia. Another Mumbai based firm HRD and CO has got an

order for a geo-thermal energy project in Djibouti on a power purchase agreement.

Djibouti is also looking at tie-ups with Indian computer-education firms like NIIT

and Aptech to start institutes in Djibouti.

Educational and technical cooperation

India provides training to Djibouti nationals under the Indian Technical and

Economic Cooperation (ITEC) programme. It granted two scholarships every year

till the year 2003-2004 and the number was increased to five after 2005-06. Under

Article 6 of the Cultural Exchange Programme 2003-2005, India had committed to

offer scholarships for post graduate studies at Indian Universities to Djibouti

nationals. Under General Cultural Scholarship Scheme (GCSS), ICCR has been

offering one scholarship to Djiboutian nationals since 1992-1993. About 750

students from Djibouti are

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pursuing different degrees in India. India had also provided humanitarian

assistance worth US$ 1 million in the form of wheat, rice and medicine to meet

the requirements arising from drought in 2003.

India and Djibouti in the Indian Ocean Geopolitics

Djibouti is particularly vulnerable to political developments in the region.

It is the most stable country on the Horn of Africa largely depending on its former

colonial power, i.e. France. The French were aware of its strategic importance

when they took possession of the territory in 1859. This importance was further

enhanced when a French company constructed the railway line from Djibouti to

Addis Ababa, the capital of Ethiopia. Djibouti is a very useful port in this

sensitive and volatile region. In the recent years when Ethiopian Marxist regime

fell in 1991 (resulting restoration of economic growth and external trading links),

the demand for Djibouti's port services began to rise further. After Eritrea became

independent in 1993 and in 1998 it had a border war with Ethiopia, the land

locked Ethiopia became completely dependent on Djibouti as its road links

through Eritrea were snapped.

Djibouti is of exceptional interest to India as a regional ally due to

increasing threat posed by piracy in this area which has caused concern to India’s

shipping trade. At the 101st council of the International Maritime Organization,

India called for a United Nations peacekeeping force under a unified command to

tackle piracy in the area. India has conducted military counter-piracy operations

by its naval ships near Djibouti and Somalia. Joint naval exercises by Indian and

French navy off Djibouti coast in the recent years testifies how serious India is in

this regard. India is the single largest foreign investor in Ethiopia with approvals

crossing 3.5 billion US dollars. Of this, two billion dollars is in the agriculture and

floriculture sector alone. It enjoys a huge trade surplus with Ethiopia with exports

accounting at US$400 million and imports at around 14 million. Use of Djibouti

ports for its trade and commerce with Ethiopia is important for India.(Thaindia

News, 2008)

Djibouti is very close to the countries of Arabian Peninsula.

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If the proposed Bridge of the Horns becomes a reality it will provide connectivity

between the two continents. In that event Djibouti is likely to be an economic hub

of that region where Indian trade and investment has the potential to increase

manifold. The Country is a regional ally of United States in the fight against

terrorism. India too cooperates with the US in this regard. It is therefore mutually

beneficial for India and Djibouti to maintain close relationship to share

intelligence and provide logistic support to each other in their war against terror.

Growing closeness in Indo-US relations, especially since 9/11, has made it easier

for India to enter into close political and security cooperation with other American

friends such as Australia and South Africa on the Indian Ocean littoral. Similarly,

rise of India as a key player in the gradual economic and security integration of

the countries of the Indian Ocean can have multifarious effects. India is

expanding its bilateral relations with almost each country in the region. It has

taken care that the smaller countries like Djibouti also find due and honourable

place in its foreign policy calculations as they are equally important in the overall

geopolitics of the Indian Ocean.

References:

Aqeel Al-Halali (2008) “Construction begins on Yemen-Djibouti Bridge”, Yemen Times, July 31, 2008;

Frontier India (2007) “Exercise Varuna 07”, Frontier India, September 18. International Boundaries Research Unit (2008) “Djibouti-Eritrea boundary row re-emerges”, Durham University, Available at, http://www.dur.ac.uk/ibru/news/boundary_news/?itemno=6456.Retrieved on 23.9.2010

Saint Veran Robert et al (1981) Djibouti: Pawn of the Horn of Africa, Lanham,Scarecrow Press.

Somaliland Times (2007) “India Gives $20 Million Funding for Djibouti Cement Plant”, Somaliland Times, issue no.275, April 28.

Sudan Tribune (2010) "Ethiopia asks India’s support to improve railways with Djibouti", Sudan Times, February 3.

Thaindia News (2008) “India, Ethiopia to intensify trade and investment links”, Thaindian News, (online) October 03.

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