weighted score 5.1 · nine dimensions
Country Risk Profile
Djibouti
Sourcing risk, regulatory exposure and audit intelligence for Djibouti-origin supply chains.
Forced & child labour
4
No systematic findings but monitoring capacity limited. Migrant worker exploitation risk on the Horn of Africa transit corridor.
Worker rights & FOA
5
ILO core conventions ratified. Freedom of association constrained in practice by dominant single-party political system.
OHS & audit transparency
5
Limited audit infrastructure. Small economy with few export-oriented factories. Third-party audit coverage minimal.
Food & product safety
5
Primarily a transit economy. Domestic food production limited. Regulatory capacity for product safety standards underdeveloped.
Environmental & regulatory
4
Minimal industrial emissions footprint. Environmental regulatory framework exists but enforcement capacity limited. No active IUU card.
Governance & anti-corruption
8
TI CPI 2025: 31/100. President Guelleh in power since 1999. Limited political competition. State capture of key economic assets including port concessions.
Tariff & preferential access
4
EBA beneficiary — duty-free, quota-free access to EU market. LDC status maintained.
Non-tariff barriers
5
Limited export diversification beyond port services. Re-export of Ethiopian goods creates traceability challenges for origin verification.
Supply chain traceability
6
Transit hub function complicates origin tracing. Goods originating in Ethiopia, Somalia, or Yemen may transit through Djibouti with unclear provenance documentation.
Labour & Social Risk
Labour & Social Risk
- Forced labour risk
- No systematic forced labour findings documented by ILO or ILAB for Djibouti. However, limited monitoring capacity in a country of ~1.1 million means visibility is low. Migrant workers transiting from Ethiopia and Somalia face exploitation risk.
- Worker rights
- Freedom of association is legally permitted but constrained in practice. Independent trade union activity is limited. The single-party-dominant political system restricts civic space broadly.
- ILO conventions
- Djibouti has ratified ILO C029 (Forced Labour), C087 (Freedom of Association), C098 (Right to Organise), and C138/C182 (child labour). Enforcement capacity is limited.
- Migrant worker exposure
- Djibouti sits on the main migration corridor from the Horn of Africa to the Gulf states. Ethiopian and Somali migrants transiting through Djibouti are vulnerable to labour exploitation, particularly in informal sectors.
EU Regulatory Exposure
EU Regulatory Exposure
- GSP status
- Djibouti is classified as a Least Developed Country (LDC) and benefits from the EU Everything But Arms (EBA) arrangement, providing duty-free, quota-free access to the EU market.
- EUDR exposure
- Minimal direct EUDR exposure. Djibouti has negligible production of EUDR-regulated commodities (timber, soya, palm oil, coffee, cocoa, rubber, cattle). Re-export risk from Ethiopian goods transiting Djibouti port is the primary concern.
- EU Forced Labour Regulation
- Regulation (EU) 2024/3015 applies from December 2027. Low baseline export volume to the EU limits immediate exposure, but goods transiting through Djibouti from higher-risk origins could trigger investigations.
- CBAM exposure
- Negligible. Djibouti has minimal industrial production in CBAM-covered categories (steel, aluminium, cement, fertilisers).
Logistics & Supply Chain
Logistics & Supply Chain
- Primary function
- Djibouti functions primarily as a transit hub and port-service economy rather than a manufacturing origin. The port handles approximately 90% of landlocked Ethiopia's trade.
- Key infrastructure
- Doraleh Multipurpose Port, Doraleh Container Terminal, and the Addis Ababa-Djibouti railway (opened 2018). New Damen ship repair yard operational from April 2026.
- Red Sea disruption
- Houthi attacks on Red Sea shipping from late 2023 have significantly impacted Suez Canal traffic (volumes down ~70% vs 2023 peak). Djibouti port traffic has declined as vessels reroute via the Cape of Good Hope.
- Chokepoint
- Bab el-Mandeb strait — one of the world's most critical maritime chokepoints. Approximately 10% of global seaborne trade transits through this strait adjacent to Djibouti.