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Djibouti’s Great Horn Investment Holding (GHIH) has secured US$155 million in financing to support the ongoing development of the Damerjog Industrial Development Free Trade Zone.

The funds will be used to complete the Damerjog oil jetty and for the construction of a 150,000 cubic metre first storage depot / oil tank farm, as well as for other costs related to the projects.

The African Export-Import Bank (Afreximbank) has disbursed a US$120 million financing facility, while US$35 million is being provided through the Banque Pour le Commerce et l'Industrie Mer Rouge (BCIMR) of Djibouti.

The engineering, procurement and construction (EPC) contractor for the work is Morocco’s SOMAGEC.

“The establishment of a jetty and bulk port in the Djibouti free trade zone will add significant value to Djibouti’s role as a trans-shipment hub for neighbouring landlocked countries,” commented Afreximbank president, Benedict Oramah.

“We are equally proud that the project is being implemented by Moroccan EPC contractor SOMAGEC, a testimony to Afreximbank’s support to African contractors undertaking large infrastructure projects on the continent. Our intra-African trade agenda will continue to emphasise support to African contractors to enable them to win and execute such major infrastructure projects across the continent.” 

Afreximbank says it has financed more than $7 billion-worth of EPC-related transactions over the past six years and issued trade instruments in excess of $6 billion to support and facilitate the award of contracts to African contractors.

GHIH is a state-owned investment holding vehicle responsible for logistics and transportation infrastructure in Djibouti. It owns interests in about 18 of the largest government-owned companies, with a portfolio that includes shipping, bunkering, free zone management, storage, road transport and port security.

Damerjog Industrial Development Free Trade Zone is focused on heavy industry including oil, gas and ship repair, and livestock. It is located close to the border with Somalia.

Photo: Afreximbank disburses US$120 million (Source: Afreximbank)