CHINA-DJIBOUTI: INDIAN OCEAN

 Following reports last year that China is in talks to build logistics facilities in Djibouti, Djibouti's President has signed agreements with China on January 20, 2016, to set up a trade zone and establish a legal framework to let Chinese banks operate in the tiny Horn of Africa nation. The free zone for trade and business would cover an area of 48 sq km (19 sq miles). Djibouti's President Ismail Omar Guelleh said he wanted the first phase, covering 1.5 sq km, to be operational before the end of 2016. Another agreement aims to expand Djibouti's role for transhipment of goods in trade between China and the world,. This would mean cargo coming to Djibouti - which is on a body of water linking the Red Sea with the Gulf of Aden - and then being reloaded for other destinations. Djibouti's President Ismail Omar Guelleh also signed an agreement for "the implementation of a legal framework" for Chinese banks to operate in Djibouti. 

 






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