DJIBOUTI (Halbeeg)- The Intergovernmental Authority on Development (IGAD) has welcomed China-built International Free Trade Zone (DIFTZ) in Djibouti.
In a statement, the East African bloc commended the efforts of African and Chinese leaders to establish a free trade zone.
“This is a clear demonstration of regional economic integration that the member states have been working towards,” IGAD said in a statement.
IGAD has noted in the statement that the Zone is estimated to handle over 7 billion dollars’ worth of trade in the next two years.
The Free Trade Zone will house manufacturing, warehouse facilities, an export processing area and service centres that will create over 15,000 job opportunities.
“The IGAD Secretariat is proud of this important milestone in regional integration and associates with it as it contributes towards the realization of the aspirations of the ongoing discussions on the IGAD free movement protocol and the African Continental Free Trade Area (AfCFTA),” IGAD said.
A well-organised conference which convened leaders from and African was held last week in Djibouti.
The leaders unveiled the DIFTZ at an August ceremony in Djibouti
The market worth 370-million-U.S.-dollar consists of three functional blocks located close to all of Djibouti’s major ports, and the pilot zone will have four industrial clusters, focusing on trade and logistics, export processing and business support.
President Ismael Omar Guelleh of Djibouti stated during the launch that the Free Trade Zone is a place of hope for thousands of young job seekers.
Speaking during the inauguration ceremony of the project, Rwandan President Paul Kagame said that it will not only serve Djibouti but wider regions of the continent.
“The importance of this Free Trade Zone extends beyond the IGAD region to the rest of the African continent. With full collaboration, this project will be a benefit for all of us,” Kagame.
This was also echoed by the Prime Minister of Ethiopia and chair of IGAD, Abiy Ahmed; the President of Somalia, Mohamed Abdullahi Mohamed; the President of Sudan, Omar Al Bashir, and the Chairperson of the AU Commission, Moussa Faki Mahamat, who have graced the launching ceremony.
Prime Minister Abiy Ahmed of Ethiopia had also expressed his country’s support to Djibouti in efforts to speed up regional economic integration.
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