Tuesday, Nov 12, 2019

Djibouti - Economic Profile

About Doing Business

 The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.

In addition, Doing Business o ers detailed  subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.

The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world.

The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals.

djibouti economic profile 1

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Starting a business

Procedures, time, cost and paid-in minimum capital to start a limited liability company

This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city.This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.

The latest round of data collection for the project was completed in June 2017.  See the methodology for more information.

 

What the indicators measure

Case study assumptions

Procedures to legally start and operate a company (number)

  • Pre-registration (for example, name verification or reservation, notarization)
  • Registration in economy’s largest business city
  • Post-registration (for example, social security registration, company seal)
  • Obtaining approval from spouse to start business or leave home to register company
  • Obtaining any gender-specific permission that can impact company registration, company operations and process of getting national identity card

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information
  • Each procedure starts on a separate day (2 procedures cannot start on the same day)
  • Procedures fully completed online are recorded as ½ day
  • Procedure is considered completed once final document is received
  • No prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes
  • No professional fees unless services required by law or commonly used in practice

Paid-in minimum capital (% of income per capita)

  • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation

To make the data comparable across economies, several assumptions about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes.

The business:

- Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the most common among domestic rms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical o ce.

- Operates in the economy’s largest business city and the entire o ce space is approximately 929 square meters (10,000 square feet). For 11 economies the data are also collected for the second largest business city.

- Is 100% domestically owned and has ve owners, none of whom is a legal entity; and has a start-up capital of 10 times income per capita and has a turnover of at least 100 times income per capita.

- Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It does not use heavily polluting production processes.

- Leases the commercial plant or o ces and is not a proprietor of real estate and the amount of the annual lease for the o ce space is equivalent to 1 times income per capita.

  • Does not qualify for investment incentives or any special bene ts.
  • Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals.
  • Has a company deed 10 pages long.

The owners:

  • Have reached the legal age of majority. If there is no legal age of majority, they are assumed to be 30 years old.
  • Are sane, competent, in good health and have no criminal record.
  • Are married and the marriage is monogamous and registered with the authorities.
  • Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population.

 

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No. Procedures Time to Complete Associated Costs
 1  Deposit the initial capital at the bank and obtain a receipt
Agency : Bank
The bank must check the origin of the funds and the purpose of the initial
capital. The parties must submit a document stating their intent to start a
new business. If during the company’s life the capital should change, the
company’s registrar must be noti ed.
 2 days No charge
 2

 Draft the company's articles of association with a lawyer
Agency : Notary
There is no legal obligation to draft the company statutes with a lawyer and
since February 2014, statute templates are available online at the ODPIC
website (www.odpic.info). However, most entrepreneurs still draft the
company statutes with a lawyer.
Lawyers charge approximately FCFA 10,000 to draft the statutes.

When the statutes are drafted by a notary, the average cost is 100,000 FCFA.

 3 days  DFJ 10,000
 3 Register articles of association with the Direction des Impôts

Agency : Service des Impots
All new companies must register statutes with the Direction des Impôts.

 

 3 days on average  DJF 50 000 for a capital of less than DJF 10 millions + DJF
1000 per page stamp duties (10 pages).
 4 Reserve the company name, register with the Companies Registry and

publish the notice of commencement of activity
Agency : ODPIC
In order to obtain the name certi cate (certi cat negatif) and register with

the Companies Registry, at the O ce djiboutien de la propriété Industrielle

et commerciale (ODPIC), the following documents are required:

- forms CN1 and RC1
- 2 copies of the representative’s power of attorney
- 2 certi ed copies of the articles of association
- 2 copies of the bank deposit receipt
- 2 sworn statement copies or 2 copies of the criminal record.
The ODPIC is also in charge of the publication of the notice of
commencement of activity in the newspaper La Nation.

 1 day

DJF 18,000 registration fees (immatriculation), DJF 18,000 for the publication and DJF 5000 name reservation

 

 5

Register for taxes and obtain professional license (patente)

Agency: Tax Administration

Entrepreneurs must go to the Service des Patentes to obtain a license, using the registration number obtained at the registrar. This registration also serves as tax registration.

Companies from class 5 to 8 are exempted from paying the professional license fees during the first three years of the company.

 2 days  No charge
 6 Create a company seal, letterhead and books

Agency : Seal-making shop

Creating a company seal, letterhead and books can be done at the Seal-maker for DJF 2000 - 3000 (for seal and letterhead) + DJF 5000 - 7000 (books).

 3 days  DJF 2,000 - 3,000 (for seal and letterhead) + DJF 5,000 - 7,000 (books)
 7 Register employees with the Caisse Nationale de la Sécurité Sociale Agency : Caisse Nationale de la Sécurité Sociale

The Company must register and register each employee to the Social Security.

 1 day (simultaneous with previous procedure)  No charge

 


Dealing with construction permits

Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits,This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits,submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. Inaddition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality ofbuilding regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professionalcerti cation requirements. The most recent round of data collection was completed in June 2017.

 What the indicators measure  Case study assumptions

Procedures to legally build a warehouse (number)

Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates

Submitting all required notifications and receiving all necessary inspections

Obtaining utility connections for water and sewerage

Registering and selling the warehouse after its completion

Time required to complete each procedure (calendar days)

Does not include time spent gathering information

Each procedure starts on a separate day— though procedures that can be fully completed online are an exception to this rule

Procedure is considered completed once final document is received

No prior contact with officials

Cost required to complete each procedure (% of warehouse value)

Official costs only, no bribes Building quality control index (0-15)

Sum of the scores of six component indices:

Quality of building regulations (0-2)

Quality control before construction (0-1)

Quality control during construction (0-3)

Quality control after construction (0-3)

Liability and insurance regimes (0-2)

Professional certifications (0-4)

To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

- Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city . For 11 economies the data are also collected for the second largest business city.

- Is 100% domestically and privately owned; has ve owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts.

- Owns the land on which the warehouse will be built and will sell the warehouse upon its completion.

The warehouse:

  • Will be used for general storage activities, such as storage of books or stationery.
  • Will have two stories, both above ground, with a total constructed area of

approximately 1,300.6 square meters (14,000 square feet). Each oor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita.

  • Will have complete architectural and technical plans prepared by a licensed architect . If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures.
  • Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements).

The water and sewerage connections:

  • Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built.
  • Will have an average water use of 662 liters (175 gallons) a day and an

average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day.

- W i l l h a v e a c o n s t a n t l e v e l o f w a t e r d e m a n d a n d w a s t e w a t e r o w throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

 

djibouti business profile 001

djibouti business profile 002

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontierNote: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontierscores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of thecomponent indicators.

djibouti business profile 003

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list formen and women, the graph shows the time for women. For more information on methodology, see the Doing Business website(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.

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 Number  Procedures  Time to Complete  Associated Costs
 1
Obtain lot plan and a certificate of registration
Agency: Cadastre - Direction des Domaines et Conservation foncière
BuildCo must obtain a certified zoning map and a certi cate of registration in order to apply for a permis de remblai.
 7 days No charge
 2

 Apply and obtain a "permis de remblai" (embankment) at the DirectionApply and obtain a "permis de remblai" (embankment) at the Directionde l'Habitat et l'Urbanisme

Agency : Department of Housing and Urban Development (Direction del'Habitat et l'Urbanisme)To apply and obtain an embankment permit, BuildCo must submit:

• A letter

• A registration certificate issued by the Direction des Domaines et de laConservation Fonciere

• A location plan/urbanisme plan issued by the cadastre service at theDirection des Domaines et de la Conservation FonciereUpon this request, the Direction de l'Habitat et l'Urbanisme will issue a"permis de remblai" and its volume.

 7 days No charge
 3

Register articles of association with the Direction des ImpôtsRegister articles of association with the Direction des Impôts

Agency : Service des Impots

All new companies must register statutes with the Direction des Impôts.

 1 day No charge
 4 Receive inspection to verify the compactness of the embankment from the LBCE
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
The LBCE -- Laboratoire Central du Bâtiment et de l'Equipement -- will inspect the embankment. The cost that LBCE offers for a test of compactness is DJF 6,000.00 for every 200 sq. m. at a depth of 30 cm.
It is assumed that BuildCo will request a depth of 90 cm. Therefore for a plot of land of 929 sq. m. and a compactness of 0.9 m, the cost paid by BuildCo's would be land (DJF 6,000.00 * (5 * 3)) = DJF 90,000.00.
If LBCE is satis ed that the compactness is adequate, they will transmit the signed request to DHU for the issuance of the certificate of compliance for the embankment.
 1 day DFJ 90,000
 5 Obtain certificate of compliance for the embankment (certificat de conformite de remblai)
Agency : Direction de l'Habitat et l'Urbanisme
Once the signed document from LBCE is received, the Direction de l'Habitat et l'Urbanisme will issue the certificate of compliance (certificat de conformité de remblai) for BuildCo.
 14 days No charge
 6
Request and obtain nal ground plans (plan de masse cadastral)
Agency : Sous Direction de la Conservation Foncière (de la Direction des Domaines et de la Conservation Foncière)
After obtaining the permit and certi cate of compliance for the embankment, BuildCo must request and obtain the final ground plans at the Sous Direction de la Conservation Foncière (de la Direction des Domaines et de la Conservation Foncière). A tax on embankment must be paid: DJF 100.00 per cubic meter.
This map de nes the boundaries of the land and must be attached to the application for the building permit, or else the application will not be accepted by the DHU. Sub-Directorate of Lands and Land Conservation will identify a date to issue the Plan de Masse Cadastral and the final pegs installation on the lot.
 7 days DFJ 83,610
 7 Obtain building permit
Agency : Direction de l'Habitat et l'Urbanisme
BuildCo must submit 6 copies of the le for the building permit request to the DHU (Direction de l'Habitat et l'Urbanisme).
The 2.5% tax that the company must pay is divided as follows:
• 1.5% for analysis of the request for the building permit
• 1.0% for the surveillance of the concrete structure (study and works)
15 days DFJ 423,932
 8 Receive first concrete test from the LBCE- Laboratoire Central du Bâtiment et de l'Equipement
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
Construction testing occurs at each phase of the building process. Concrete
crushing test is done at 7 days, then at 14 days and nal one at 21 days.
 7 days  DFJ 172,800
 9 Receive second resistance test from the LBCE- Laboratoire Central du Bâtiment et de l'Equipement
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
This is the second concrete crushing test done 7 days after the rst one.
 7 days  No charge
 10 Receive nal resistance test from the LBCE- Laboratoire Central du Bâtiment et de l'Equipement
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
This is the final concrete crushing test done 7 days after the second test was done.
 7 days  No charge
 11 Request and receive an earthquake certificate issued by the Direction de l'Habitat et l'Urbanisme
Agency : Direction de l'Habitat et l'Urbanisme
To obtain the certi cate of conformity after construction is complete, it is mandatory to obtain an earthquake certificate issued by the Direction de l'Habitat et l'Urbanisme. BuildCo can request this certi cate by visiting the agency in person. The earthquake certificate is obtained as soon as the different slabs have been casted from the Sous-Direction Contrôle de la
Direction de l'Habitat et de l'Urbanisme on the basis of "good casting." The certificate is issued the next day after verification of compliance with seismic standards. BuildCo does not have to wait for the completion of the construction to request this certificate.
 2 days  No charge
 12 Request and receive foundation inspection from the Direction de l'Habitat et l'Urbanisme, Sous-direction Contrôle et Réglementation
Agency : Direction de l'Habitat et l'Urbanisme, Sous-direction Contrôle et Réglementation
The works begin when the concrete plans are accepted by the Sous-direction Contrôle et Réglementation. An inspection takes place when slabs are laid.  This procedure is not mandatory but is standard practice.
 14 days  USD 300

 >> 13

Request and receive an electrical certi cate of compliance
Agency : Direction de l'Habitat et l'Urbanisme
To obtain the certi cate of conformity after construction is complete, it is mandatory to obtain an electrical certificate of compliance issued by the Department of Housing and Urban Development. The electrical certificate of compliance can be requested once the internal wiring is done in compliance with the standards.  Officers from the Sous-Direction de l'Urbanisme will conduct a site visit and the electrician will explain the internal wiring to the o cers. The inspection takes place one day after the request for the certi cate of compliance. After 1-2 days, the Sous-Direction de l'Urbanisme issues the electrical certificate of compliance.
 2 days  No charge
>> 14
Request and receive an alignment certificate
Agency : Direction des Domaines et de la Conservation Foncière
To obtain the certi cate of conformity after construction is complete, it is mandatory to obtain an alignment certificate issued by the Direction des Domaines et de la Conservation Foncière.
 2 days  No charge
>> 15
Request and receive the sanitary certificate issued by the National Institute of Public Health
Agency : National Institute of Public Health (l’Institut National de Santé Publique de Djibouti)
To obtain the certificate of conformity after construction is complete, it is mandatory to obtain sanitary certificate for the septic tank issued by the National Institute of Public Health in Djibouti.
 2 days  No charge
 16

Submit all certificates of compliance and obtain final certificate of compliance (certificat de conformité)

Agency : Ministry of Housing (Ministère de l’Habitat)Compliance of new construction is confirmed by the issuance of a Certificateof General Conformity issued by the Department of Housing and Urban Development at the end of the work.This certificate attests the conformity of the building in accordance to theapproved building permit. Several compliance certificates must be submitted: earthquake, sanitation, alignment, foundation and electrical.

 7 days  No charge
>> 17

Request and receive water and sewage connectionRequest and receive water and sewage connection

Agency : Office Nationale des Eaux de Djibouti (ONEAD)

For the sewage network a health certificate is issued by the Department of Epidemiology and Health Information, which is obtained in procedure 15.  The water company provides the meter at no charge and BuildCo lays downthe pipes to connect it to the main line.

 21 days USD 500

 

>> Takes place simultaneously with previous procedure.

Details – Dealing with Construction Permits in Djibouti – Measure of Quality

 AnswerScore
Building quality control index (0-15)    11.0
Quality of building regulations index (0-2)    2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge; In official gazette.  1.0
Which requirements for obtaining a building permit are clearly speci ed in the building
regulations or on any accessible website, brochure or pamphlet? (0-1)
List of required documents; Fees to be paid; Required preapprovals.  1.0
Which requirements for obtaining a building permit are clearly speci ed in the building
regulations or on any accessible website, brochure or pamphlet? (0-1)
List of required documents; Fees to be paid; Required preapprovals.  1.0
Quality control before construction index (0-1)    1.0
Which third-party entities are required by law to verify that the building plans are incompliance with existing building regulations? (0-1) Licensed engineer.  1.0
Quality control during construction index (0-3)    2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections at various phases;  Risk-based inspections.  2.0
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are not always done
in practice during construction; Mandatory
inspections are done most of the time during
construction.
 0.0
Quality control after construction index (0-3)    3.0
Is there a final inspection required by law to verify that the building was built in
accordance with the approved plans and regulations? (0-2)
Yes, in-house engineer submits report for final inspection.  2.0
Do legally mandated nal inspections occur in practice? (0-1)
Final inspection always occurs in practice.
 1.0
Liability and insurance regimes index (0-2)    1.0
Which parties (if any) are held liable by law for structural aws or problems in thebuilding once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) Architect or engineer; Professional in charge of the supervision; Construction company.  1.0
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural aws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance .  0.0
Professional certifications index (0-4)    2.0
What are the qualification requirements for the professional responsible for verifying
that the architectural plans or drawings are in compliance with existing building
regulations? (0-2)
Minimum number of years of experience; University degree in
architecture or engineering.
 1.0
What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management.  1.0
     

 


Getting electricity

Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newlyconstructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June2017. See the methodology for more information.

What the Indicators Measure Case Study Assumptions 
 Procedures to obtain an electricity connection (number)
  • Submitting all relevant documents and obtaining all necessary clearances and permits
  • Completing all required notifications and receiving all necessary inspections
  • Obtaining external installation works and possibly purchasing material for these works
  • Concluding any necessary supply contract and obtaining final supply

 Time required to complete each procedure (calendar days)

  • Is at least 1 calendar day
  • Each procedure starts on a separate day
  • Does not include time spent gathering information
  • Reflects the time spent in practice, with little follow-up and no prior contact with officials

 Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes
  • Value added tax excluded

 The reliability of supply and transparency of tariffs index (0-8)

  • Duration and frequency of power outages (0–3)
  • Tools to monitor power outages (0–1)
  • Tools to restore power supply (0–1)
  • Regulatory monitoring of utilities’ performance (0–1)
  • Financial deterrents limiting outages (0–1)
  • Transparency and accessibility of tariffs (0–1)

Price of electricity (cents per kilowatt-hour)*

  • Price based on monthly bill for commercial warehouse in case study

*Note: Doing Business measures the price of electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity.

 

To make the data comparable across economies, several assumptions are used.

The warehouse:
- Is owned by a local entrepreneur and is used for storage of goods.
- Is located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
- Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

The electricity connection:
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service
panel or switchboard and the meter base.

The monthly consumption:
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
- If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for calculation purposes only 30 days are used.

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djibouti business profile 006

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 Number  Procedures  Time to Complete  Associated Costs 
 1  Submit application to Electricité de Djibouti and await estimate
Agency : Electricité de Djibouti (EDD)
The application is typically submitted to Electricité de Djibouti (EDD) in person. A detailed load schedule should be attached to the application, along with a copy of the construction permit.
Once the application is lodged, an engineer from EDD will need to come on site to do a feasibility study. Following this step, the quote will be sent to the
customer.
 15 calendar days  DJF 0
 >> 2  Receive external inspection by Electricité de Djibouti
Agency : Electricité de Djibouti (EDD)
Electricité de Djibouti (EDD) inspects the site and prepares an estimate for the connection fees.
 1 calendar day  DJF 0
 3 Obtain external works from Electricité de Djibouti
Agency : Electricité de Djibouti (EDD)
After paying the connection fees, the client needs to wait for Electricité de Djibouti (EDD) to obtain all the material. And for an electricity connection for the warehouse considered in this case study, a unit substation is needed.
95 calendar days DJF 19,675,428
 4 Sign supply contract and obtain meter installation and final connection
Agency : Electricité de Djibouti (EDD)
When the external works are completed and the client has signed a supply contract, Electricité de Djibouti (EDD) inspects the internal wiring (but not in its entirety) and installs the meter.
15 calendar days DJF 604,969
       

 

>> Takes place simulatenously with the previous procedure.

 

Details – Getting Electricity in Djibouti – Measure of Quality

 

  Answer
 Reliability of supply and transparency of tariff index (0-8)  0
 Total duration and frequency of outages per customer a year (0-3)  0
 System average interruption duration index (SAIDI)  ..
 System average interruption frequency index (SAIFI)  ..
 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI  N/A
 Mechanisms for monitoring outages (0-1)  1
 Does the distribution utility use automated tools to monitor outages?  Yes
 Mechanisms for restoring service (0-1)  1
 Does the distribution utility use automated tools to restore service?  Yes
 Regulatory monitoring (0-1)  0
 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance onreliability of supply?  No
 Financial deterrents aimed at limiting outages (0-1)  0
 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outagesexceed a certain cap?  No
 Communication of tariffs and tariff changes (0-1)  1
 Are effective tariffs available online?  Yes
 Link to the website, if available online

http://www.edd.dj/eddweb/upload/tarif_2016.pdf

 Are customers noti ed of a change in tari ahead of the billing cycle?  Yes

 

Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

 


 

Registering property

Procedures, time and cost to transfer a property and the quality of the land administration system


Getting credit

Movable collateral laws and credit information systems


Protecting minority investors

Minority shareholders’ rights in related-party transactions and in corporate governance


Paying taxes

Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes


Trading across borders

Time and cost to export the product of comparative advantage and import auto parts


Enforcing contracts

Time and cost to resolve a commercial dispute and the quality of judicial processes


Resolving insolvency

Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency


Labor market regulation

Flexibility in employment regulation and aspects of job quality

Djibouti - Land Governance Country Profile

djibouti profile 480x640


 

1. Country Context

The Republic of Djibouti is in the Horn of Africa between longitudes 41°8 ' and 43°4' E and the latitudes 10°9 ' and 12°7' N. It is bordered to north by Eritrea, to south-east by Somalia and to the west by Ethiopia. In the east, the country benefits from a seaside coast divided between the Red Sea and the Gulf of Aden and which extends on more than 372 km. It covers a surface area of 23 200 km² and has an estimated population of 900 000 people according to the United Nations Development Programme (UNDP, 2014), growing at 2.9% per annum. More than 70% of the population lives in urban areas, with nearly 60% in the capital and about only 16.3 per cent of the population lives in the rural areas.

The country is divided into five regions: Ali Sabieh, Dikhil, Obock, Tadjourah and Arta. The city of Djibouti has a special status. The biggest part of the land is pastoral and agricultural lands account for only 0.5% of the country. Djibouti has only 10,000 hectares of arable land, of which 1,000 are cultivated. Some 9.5 per cent of the land under cultivation is irrigated. Half of the arable land is in the north; most crops are grown in the south, however, mainly in the districts of Ali-Sabieh, Dikhil and Djibouti. There are around 1,600 farms in Djibouti, employing an approximate total of 3,600 people. The average area of farms is one half hectare

Three-quarters of the population live in Djibouti city and the few other urban and peri-urban areas. The remaining quarter of the population continues to pursue the traditional transhumant pastoralist lifestyle that predominated in pre-colonial Djibouti. Both the Afar and Issa people are herders of camels, goats, and sheep. The Afar, in the northern region of the country, are part of a larger Afar group located mostly in Ethiopia, while the Issa, who live mostly in the south, are related to the Somalis of neighbouring Somalia. In addition, approximately 25,000 Somali refugees currently reside in Djibouti.

 


 

2. Policies and Laws Relevant to Land Governance in Djibouti

2.1 The Constitution of Djibouti 1992 as Amended in 2010

The Constitution under Article 12 of Chapter II recognizes the right to property and sets forth that ‘the right to property is guaranteed by this Constitution. It may not be infringed except in the case of public necessity legally established, under reserve of a just and prior indemnity. The domicile is inviolable. It may only be subjected to intrusions or searches in the forms and conditions specified by the law. The measures infringing the inviolability of the domicile or circumventing it may only be taken to respond to a collective danger or to protect persons in peril of death’ (Art. 12). The Constitution does not provide provisions on land tenure system and land institutions.

2.2 Law No 171/AN/91/2nd L on Carrying Definition and Organization of Public Domains (Lands)

This law provides for the establishment and organisation of the public domain or land.

Under the law all land belongs to the state. Article 1 provides that public land consists of all property assets, whatever their nature, whether immovable or movable, classified and delimited as belonging to the public domain, whether they are, or are not, intended for use by the public.

According to Article 2 the state public land consists of the natural domain and the artificial domain and Article 3 provides that public land consists of natural sites determined by the law which include the sea water front, up to the limit of the highest tides, as well as a zone of 50 meters starting from such limit; islands and small islands water sources, as well as non-navigable and not floatable watercourses, within the limits determined by the highest water levels before overflowing, and a servitude (right of way) of a 25 m. width starting from these limits on each bank lakes, ponds and lagoons, within the limits determined by the highest water levels before overflowing, and a servitude (right of way) of a 25 m. width starting from these limits on each shore and groundwater aquifers, whatever their origin, nature and depth.

Article 5 provides that private lands and buildings may be subject to all types of easements, including rights of way, rights of overflight, easements for the installation of structures, easements of support and rights of access necessitated. Further under Article 6 all urban private properties may also be subjected to easements for reasons of hygiene, aesthetics, alignment, public security, as well as to those easements that may be imposed by a development or expansion plan, of which the terms of establishment and implementation are set by the competent authorities in accordance with urban planning regulations and there is no compensation due to the owners because of the easements (Article 7).

2.3 Law No 173/AN/91/2nd L on Organization or Management of State Private Domains (Lands)

This law makes provisions for state private land. Under the Act, State Private includes free Lands and without owner and lands acquired by the State, from donations, inheritances, or of any other manners recognized by the law (Article 1) Under Article 2 private land is divided into two categories namely urban land designated as such by the legislation in force and rural land which is other land.

Under Article 3 the sale of state land is subject to the following rules. Land acquired by the state in what whatever manner of acquisition and already developed and duly registered is subject to common law rules on property and contracts and vacant and ownerless land and in general, all non-registered or undeveloped land, may be regarded as urban land.

Articles 4-21 makes provisions for the management of urban land.

Article 4 makes provisions for parcels of urban land intended for construction, after prior registration in the name of the State. This may be transferred against payment or for free, by agreement, by order on proposal of the Minister in charge of the domains, upon the advice of the land commission. Exceptionally, land may be sold by public tender when, being on sale at the initiative of the administration, it remains unsold for six months from the date of sale, or where the land to be sold is located in an area that has been the subject of development of an exceptional quality.

Under Article 5 the land parcels underlying public roads or buildings decommissioned in accordance with the provisions on the public domain may be transferred to the owners of adjoining land. A period of three months from the decommissioning order shall be granted to these adjoining owners to exercise their preemptive rights to these plots. If, at the expiry of the period of three months, the adjoining owners have not declared their intention to use their preemptive rights, the State may dispose of the parcels.

Under Article 7 for Urban land parcels intended for cultivation, of an area not exceeding one hectare, and for industry, of an area not exceeding three hectares, may be granted by order of the Council of Ministers on proposal of the Minister in charge of the domains, on a temporary basis, upon the payment of a fee established according to a scale fixed by decree of the Council of Ministers, and according to the terms and conditions determined in each case by the act of concession and the specifications annexed thereto.

Article 9 provides that plots of land not exceeding one thousand square meters may be assigned free of charge, by order of the Council of Ministers on the proposal of the Minister in charge of the domains, to recognized public utility institutions, provided that the lands concerned will not be sold by the beneficiary institutions, and will not be put to use in a manner other than the one provided for in the order.

Article 10 provides that the perimeter of urban centers is fixed by decree of the Council of Ministers, on the proposal of the Minister of Interior on the advice of the Minister in charge of the domains and the Minister of Public Works and Urban Development. For each urban center so defined, the domains service establishes and maintains a land map showing the lands registered in the name of private individuals, those registered in the name of the state, those reserved to the public domain, as well as vacant lands and lands without owner. A copy of this map is transmitted to the districts competent for the geographical area in which is located the urban center concerned, another copy is sent to the Department of Public Works and Urban Development. Based on the established map, the chief of the domains service initiates, on behalf of the State, the registration procedure for vacant lands and lands without an owner, by lots as large as possible.

Under Article 11 Once the rights of third parties have been regularly cleared (through the removal of liens) through this registration procedure, the domains service may, on behalf of the administration, sell the land or grant a concession for the land, as provided for in this law, taking into account the urban development plan, if it exists, or, in default of a plan, subject to consultation with the Republic Commissioner for the district and the ministry of public Works and urban development, particularly concerning the development of the specifications (cahier des charges).

Under Article 12 when the lots are to be disposed of by auction the tender is held at the district headquarters, under the care either of the chief of the domains service, or of the Republic Commissioner acting on his behalf. Each lot is subject to special auction, with the minimum price set by the specifications. In case of competition, it is attributed to the strongest and last bidder. The auction takes place provided that the sale is approved by order of the Council of Ministers, upon proposal of the Minister in charge of the domains, after advice by the Land Commission.

Under Article 13 if the chief of the domains service, or the Republic Commissioner acting on his behalf receives only a single declaration of participation in the auction, the auction does not take place and the lot is sold directly to the author of the declaration, according to the conditions and the minimum prices set in the specifications for the tender. The tender is also subject to the procedure of approval by order.

Under Article 14 the awarding of the full ownership of the transferred lot only takes place after the implementation of all the clauses and conditions set out in the specifications, verified by a report of the chief of domains or of the Republic Commissioner acting on his behalf. Based on this report, the transfer of the land title to the name of the transferee is authorized by order of the Council of Ministers issued on the proposal of the Minister in charge of the domains, after advice by the Land Commission.

Under Article 15 failure to implement the terms and conditions provided for in the specifications entails ipso facto the restitution of the land, free of all charges, to the State domain; this measure is subject to an order of the Council of Ministers on proposal of the Minister in charge of the domains, after advice by the Land Commission. In exceptional circumstances beyond its control, the winning tenderer or concessionaire may be afforded an additional period of time by the Minister in charge of the domains.

Article 16 provides that the terms of reimbursement of the price paid for the land in case of restitution to the state domain are determined by the specifications (cahier des charges). The same applies to the moneys to be deducted from this reimbursement and to be paid to the State as compensation for failure to implement the specifications.

Article 17 provides that if there are installations on the land, the administration has the right to take them. If it renounces this right, a three-month period is accorded to the winner of the tender of the concessionnaire to remove these installations, materials, etc.

At the expiry of this period, the administration becomes the owner, without having to pay compensation.

Article 19 provides that the vacant lands and lands without an owner which are not yet registered in the name of the state and are located outside the areas covered by a housing development plan may be granted for temporary occupation by the Republic Commissioner of the District. To this end, the Commissioner shall issue a permit authorizing the immediate temporary occupation of the land, at the risk of the applicant, who is allowed to build thereon easily removable structures. The permit indicates the surface area to be occupied, the obligations imposed on the occupier, the amount of the fees payable and prohibition to sub-let, which entails withdrawal of the occupancy permit.

Under Article 20 any person occupying land under these conditions may, if this land is subsequently registered in the name of the state and sold by the domains service, obtain, in the form of a special privilege, the cession of the lot at the price fixed by the administration, and under the terms and conditions established in the specifications (cahier des charges) attached to the act of cession, provided that the cession is authorized by order of the Council of Ministers on proposal of the Minister in charge of the domains, after advice of the land Commission. The occupant shall declare his intention to acquire the land to the chief of the domains service or to the Republic Commissioner of the district within fifteen days from the putting on sale of the land.

Under Article 21 the concessions of urban land intended for agriculture, by lots of a surface not exceeding one hectare, and for industry, by lots of a surface not exceeding three hectares, are granted by order of the Minister in charge of the domain issued by the Council of Ministers, on a temporary basis, upon payment of a fee and under the conditions determined in each case by the act of concession. As provided for in the case of urban land, registration is made in the name of the State and the transfer of the land title to the name of the concessionnaire is authorized according to the rules laid down in Article 14 above.

Articles 22- 45 provides procedure of acquiring rural land.

Under Article 22 rural lands are granted in the form of provisional concessions by order of the Council of Ministers on proposal of the Minister in charge of the domains, after the advice of the Land Commission.

Article 23 provides that any person intending to acquire rural land shall file with the Minister in charge of the domains, through the Republic Commissioner of the district where the land is located, an application indicating his name, first name, place and datesof birth, domicile and type of intended land use. A sketch showing the situation of the land as compared with the already known details, and the approximate size and general boundaries of the land shall be attached to the request.

If the request is made in the name of a company, a certified copy of the statutes of the latter and the applicant's powers shall be attached to the request.

Under Article 24 the Commissioner of the district, after consultation of the administrative services concerned, shall establish the specifications (cahier des charges), the clauses of which shall be based on both the proposed development and the local conditions. He shall then sends the file to the Minister in charge of the domains who, after hearing the chief of the domain service, shall approve it with or without modification. The decision of the Minister in charge of the domains concerning the conditions for the granting of the concession shall be notified to the applicant, who shall indicate whether he accepts these conditions.

Article 25 provides that after reaching the prior agreement, the chief of the domains service informs the public of the application, both by publication in the Official Journal or in a bulletin of legal notices, and through posters displayed in its offices. The application is also displayed at the office of the district in which the land is located.

Under Article 26 if the land is not already registered, the chief of the domain service shall initiate at, in behalf of the administration, the procedure of registration of the land in the name of the State.

Oppositions not filed within the deadlines are not admissible.

Article 27 provides that before the expiry of the deadline for filing oppositions, all persons are entitled to inspect the specifications (cahier des charges) deposited at the district capital and at the domain service offices, and to deposit in any of these offices, together with a declaration of preliminary acceptance of the specifications, a request to be granted the land under consideration.

In this case, an auction shall be organized among competitors at the conditions applying to urban lands. However, the opposition made by a concessionnaire who has not fulfilled the conditions of the specifications (cahier des charges) attached to his act of concession, is not admissible, whether or not the deadlines are expired. Each competitor is informed of the date of the auction by the Republic Commissioner of the district in which the land is situated. The land is awarded to the highest and last bidder, subject to the approval of the transfer by order of the Council of Ministers, on proposal of the Minister in charge of the domains, after advice by the Land Commission. The minimum price is fixed by the specifications (cahier des charges). Only the persons who have informed the Republic Commissioner of the district of their intention to compete for the allocation of the land within the established deadlines may take part in the auction.

Article 28 provides that the concession of rural land is granted by order of the Council of Ministers on proposal of the Minister in charge of the domains, after advice of the Land Commission and Article 29 provides that the order on the granting of a rural concession is cancelled in the same manner.

Article 30 provides that the granting of rural land is limited to the land surface. The products of the subsoil are reserved. However, building materials and quarries are included in the grant.

Under Article 31 the public domain of the State (watercourses, roads, etc.) that surrounds rural land, or which is included in it, may not be the subject of any particular appropriation and under article 32, the administration reserves to itself the right to resume at any time the free use of the land, as may be required to satisfy state service needs and for the execution of any public works.

This shall be subject to the reimbursement of the fee already paid for the surface recovered. The amount of the fee to be paid annually is adjusted by the administration in proportion to the area remaining granted under the concession.

Article 33 provides that the administration also reserves to itself the right to establish rights of way, to which the concessionnaire shall be subject without compensation.

Under penalty of loss of his rights, the concessionaire shall comply strictly with the terms and conditions established in the act of concession and in the specifications annexed thereto, concerning the development of the land which is the subject of the concession (Article 34)

Under Article 35, any partial or total cession, whether permanent or temporary, for free or for valuable consideration, of the right of provisional possession of rural land granted under a concession, shall be authorized in advance by order of the Cabinet of Ministers, on proposal of the Minister in charge of the domains, after advice by the Land Commission. In default of this prior authorization, the cession entails ipso jure withdrawal of the concession, as well as the monetary penalties provided for by the specifications.

Article 36 provides that the rural land is allocated under the express reservation of the rights of third parties and without any guarantee of its capacity: in case of appeal, the administration is not liable to pay any indemnity or any fee refund for this title.

Article 37 provides that the development of the land shall be carried out within the deadline set by the specifications. At the expiry of the deadline, the chief of the domain service, or the Republic Commissioner of the district on his behalf, shall assess progress in the development and record his findings in a procès-verbal. The procès-verbal is transmitted to the Minister in charge of the domains.

Under Article 38 a concessionnaire whose land may be considered as definitely developed, may at any time request a statement that the terms and conditions of the act of concession and of the specifications annexed thereto have been met.

Article 39 provides that the developers under temporary concessions may be granted ownership of the land plots developed in accordance with the conditions stipulated in the act of concession and the specifications annexed thereto. However, the plots so acquired in full ownership by a developer may not exceed a surface area of one hundred hectares and must have a single holder.

The allocation of plots exceeding one hundred hectares may only be made in the form of a long term lease.

Under Article 40, the transfer of the land title to the name of the concessionnaire who has met his development obligations is authorized by order of the Council of Ministers upon proposal of the Minister in charge of the domains, based on the procès-verbal referred to in Articles 32 and 33 above.

Under Article 41 the transfer of the land title in the name of the concessionnaire, duly authorized, is carried out by the Land conservator against payment, within twenty days following notification of the order authorizing the definitive transfer, of:

  1. The price of the land as stipulated in the specifications;
  2. Provision of a fixed amount of ten thousand DJF per hectare for the work of delimitation; the amount so paid is deducted from the actual amount of costs of demarcation and survey of the registration plan;
  3. Stamp fees, registration, advertising, etc., as provided for by the regulations.

Under Article 42 , the price of rural land is based on local conditions, in particular the situation of the land with regard to the means of transportation of products and (the availability of) water resources.

Article 43 provides that all titles of allocation of rural land are recorded in a special register kept by the chief of the domains service, and is subject to the formality of registration.

Article 45 provides that all disputes between the administration and the concessionnaires are submitted to the administrative court.

2.4 Law No 172/AN/91/2nd L on Regulating the Expropriation for Public Purpose Interest

This law makes provisions for the expropriation of land for reasons of public utility in the Republic of Djibouti is effected by authority of justice.

The procedure consists of four phases:

  • The declaration of public utility;
  • The order of transferability, which has for essential purpose to determine the properties to expropriate and to give interested parties the opportunity to assert their rights and to produce their titles; and
  • The pronouncement of the expropriation by authority of justice;
  • The fixing of the compensation for expropriation by an Arbitration Board.

The declaration for public utility shall be a decree or an order made by the Council of Ministers, stating of public utility operations or work to be undertaken, such as construction of roads, railways or ports; urban works; facilities of public services; military works; development, agricultural centers or natural reserves; protection of site or monuments; the work of research or development of water points, irrigation, sanitation; distribution of energy; the work of triangulation, surveying, levelling and Installation of terminals, etc..

An administrative investigation always precedes the Act concerning the declaration of public utility. The form and the duration of this inquiry are laid down by order of the Minister responsible for the Areas, taken in the Council of Ministers.

No planting or improvement may not be made on the land located in an area to be fixed by the Declaratory Act of public utility without the authorization of the Minister responsible for the areas. The duration of the easements which arise from the declaratory act of public utility can be by order of the Minister responsible for the Areas, extended for a period of one year, when it is not intervened in act of transferability in the time primitive.

The declaratory act of public utility can designate immediately the properties reached and takes place then of Order of transferability subject that have been observed the formalities prescribed in the next title.

Other relevant laws include:

  • Law n°174/AN/91/2nd L Allocating plots of state-owned land in temporary concession.
  • Law n°175/AN/912nd L Granting in temporary concession a plot of land located at the former (old) salt-works to the Djibouti Arta Plages Company.
  • Law n°176/AN/91/2nd L Carrying creation of Special Specifications applicable to the old neighborhoods and to Balbala.

 

3. Land Tenure Systems

Although the under the law all land belongs to the state, urban land can be owned privately.

Under Article 2 private land is divided into two categories namely urban land designated as such by the legislation in force and rural land which is other land.

Nomadic pastoralists control their traditional pasture areas through customary rights.

Indigenous tenure systems in Djibouti involve the rights to pasture land and water points. The Afar and the Issa maintain similar customary tenure practices, both investing regional tenure control in tribal groups. Local tribal units are subdivisions of the sultanates that have historically spanned Djibouti’s borders with Ethiopia and Somalia. A portion of the land traditionally used for transhumant herding is assigned to each family within a tribe. This land remains within a family, and the use rights are inherited by sons of successive generations. If a family has no male heir, the tribal chief may choose to reallocate the land to other families. Among the Afar, tribes are divided into noble and vassal groups. Noble tribes will cede to related vassal tribes the use rights of pasture and water points in exchange for their support and services in the event of warfare.

Unrelated vassal tribes must borrow pasture land in exchange for a tribute payment.

The tribes of the Issa are less hierarchical than the Afar, and a larger portion of traditional Issa territory lies outside of Djibouti’s contemporary borders. The head of an Issa family unit will decide when and where next to move the herds, taking into account the current state of familial and/or friendly relations with other Issa families whose lands he might traverse.

Since the Djibouti government consists of both Afar and Issa people, and since there are few crops to be threatened by the pastoralists’ herds, there is no national tenure legislation that favors agriculturalists’ rights over pastoralists’ rights. Unlike most African countries where pastoralists are disadvantaged by tenure codes that do not recognize grazing as a productive use of the land, Djibouti upholds (or, with an absence of other legislation, it at least does not contradict) the traditional tenure rights and management practices of pastoralists.

There is little pressure or concern to codify pastoralist grazing rights, or to title their tribal and family-based landholdings, because the customary mechanisms of conflict resolution regarding pasture lands and water points continue to function. Furthermore, due to the droughts of the 1980s and the draw of urban-based amenities and services, there is an increasing trend towards sedentarization.

Gender issues are acute even by regional standards. The country’s clerics follow a local interpretation of Islamic tradition that differs from Islamic inheritance practices elsewhere in the Muslim world, women do not inherit land or land access. Men own the animal herds as well as the land. Women may possess only few animals from her dowry.


 

4. Land Administration and Institutions

There are some institutions that are responsible for land administration. The major ones are as follows:

4.1 Ministry of the Habitat, Planning and the Environment

This Ministry is responsible for the preparation and the application of the Habitat Policy, town planning, the environment and the development. The Secretariat of State of the Ministry of the Habitat, the planning and the Environment responsible for housing prepares coordinates and implements the policy of the government in the matter of housing. It is in charge of ensuring the security of land and to facilitate the access to housing. In this title, it defines and implements the policy of simplification of procedures in accordance with the policy of reform of the administration and in conjunction with the relevant Ministries.

4.2 Ministry of Agriculture, Water and Fisheries

The Ministry of Agriculture is responsible for the implementation of sectoral policies in the areas of food security, rural development and water. It also has for mission the promotion and the development of animal production and plant, the improvement of the vegetation cover, the study and the exploitation of water resources, as well as fisheries production. It is also responsible for the policy of rural development especially assistance to the production, promotion of agricultural activities and agro pastoralists.

4.3 Ministry of the Interior

This Ministry is responsible for guaranteeing public security and civil, to organize the elections and to implement the policy on decentralization. It designs and implements the policy of decentralization of the services of the State and the transfer of skills between the State and the territorial communities for local governance. It defines and implements the policy of implantation of the administrations and the services of the State in the regions in particular in the field of approximation of public services of the users.

4.4 Ministry of Higher Education and Research

This Ministry is responsible for Higher Education and Research and in liaison with other interested departments, prepares and implements the policy of the Government relative to the development of the Higher education and research. It supervises University of Djibouti and the Center for the Study and Research of Djibouti.


 

5. Land Tax in Djibouti

The law levies rental income tax on income from renting out land. However, rental income is not included in the profits that are subject to the tax on business profits when they are related to a land tax on built properties. The law also provides for tax on capital gains realized on property transactions related to buildings or property rights and securities. The law further provides for land contribution and built properties where the tax base for property tax on built property consists of the perceived rent or rental value determined by a commission, the composition of which is defined by law. This tax is generally calculated on all land titles held by the taxpayer.

The law specifically provides for unconstructed properties where annual tax on undeveloped property concerns all undeveloped land, except for properties that are specifically exempt by law. This tax is at the rate of 25%.


 

6. Gender Concerns in Djibouti Land Governance

Article 1 of Djibouti's Constitution as amended in 2010 states that the state assures to all equality before the law without distinction of language, of origin, of race, of sex or of religion. It respects all beliefs. Under Art. 12 the right to property is guaranteed by the Constitution. It may not be infringed except in the case of public necessity legally established, under reserve of a just and prior indemnity. From the above provisions it is deduced that the constitution upholds the rights of women to property including land.


 

7. Challenges and Gaps in Land Governance

  • There is no National land institution responsible for land administration.
  • The land law is inadequate especially in relation to land acquisition and resettlement.