Garden Fresh

The Initiative will support market garden production under shaded tunnels and acclimatised greenhouses. It involves growing tomatoes, peppers, aubergines, courgettes, cucumbers and melons under shaded tunnels over an area of 5 hectares in the country's 5 regions, at a total cost of USD 928,500 for all five regions (considering the cost of 185,610 USD per hectare) to which the Djibouti government will contribute USD 92,850. The investment per hectare is USD 185,610, with an internal rate of return (IRR) of 35% and a net present value (NPV) of USD 12,632.

Acclimatised greenhouse cultivation involves the same crops as shaded tunnel cultivation, over an area of 10 ha in the country's 5 regions, at a total cost of USD 17,480,000. The cost per hectare is USD 1,748,000 to which the Djibouti government is contributing USD 174,800. The IRR is 39% and the NPV USD 30,246.

Crops grown under shaded tunnels and acclimatised greenhouses will enable excessive heat and soil salinity to be managed, with the possibility of an above-ground cultivation system, using fertilising drip irrigation controlled by automation to obtain higher yields than crops grown in open fields.

Dates

The investment case for date palm focuses on the integrated production of vegetables, fodder and date palms on the 1.000 ha date palm park in Hanle plain.

With the availability of water, fertile soil and favourable climatic conditions, the Hanlé plain is ideal for date palm cultivation. The mixed cropping models chosen are fodder crops and small-scale market gardening in open fields under palm trees. The advantage of growing fodder crops such as alfalfa, sorghum and others is justified by, among other things, the improvement in the physical and chemical qualities of the soil and the improvement in water retention. Alfalfa has the advantage of fixing nitrogen from the air thanks to the Rhizobium developed in its roots and then making it available to other crops, including date palms.

Market garden and forage crops will be intercropped between date palm plants.

The project will cover 1,000 hectares at a cost of nearly US$60 million, to which the Djibouti government will contribute US$6 million. The project has an estimated internal rate of return (IRR) of 31.69% and a net present value of USD 269 million.

Aquaculture

The investment case for marine aquaculture sector focuses on the development of a complete, modern system that guarantees control of the entire production cycle. The proposed model is based on intensive Captain fish/Cobia farming, with an annual production of 200 tonnes. The floating cages at sea, specially designed to withstand local conditions, form the heart of the system. They are supported by settling basins, pumping stations and salt and freshwater circuits for constant monitoring of water quality.

Support will also include a storage warehouse and a cold room to ensure the conservation of finished products. The technical core of the project is based on a short rearing cycle of 8 to 10 months, during which the fish (Captain/Cobia) are carefully fed, monitored and cared for. Each cage is monitored daily, based on a rigorous feeding plan. The grow-out environment is controlled to maintain constant parameters (temperature, salinity, oxygenation), promoting rapid, uniform and healthy growth in the fish.

The strain of fish to be reared will come either from a pilot aquaculture farm financed by the African Development Bank (ADB) project, thereby guaranteeing traceability and controlled genetic quality, or from wild juveniles collected in the wild for captive grow-out. The fry will be fed with imported industrial feed, specially formulated to ensure rapid and balanced growth, or alternatively with locally caught sardinella, which are rich in protein and available in abundance in Djibouti waters.

The model is also based on sustainable, integrated aquaculture that respects marine ecosystems and helps to reduce carbon emissions through innovative practices (marine polyculture, low energy consumption, zero pollutant discharges).

The total investment cost (INV) is estimated at USD 624,290 with IRR: 28%, VAN of USD 797,822, and return on capital employed (ROCE): 4 years.

Meat

The investment case for meat focuses on building a modern slaughterhouse in Djibouti as a strategic opportunity to transform the livestock value chain on a regional scale, providing direct and rapid access to high-demand markets, particularly in the MENA (Middle East and North Africa) region, where annual demand for meat exceeds 120,000 tonnes.

Buoyed by a favourable regional dynamic, the project will benefit from privileged access to an abundant herd estimated at 373 million ruminants in the IGAD (Intergovernmental Authority on Development) member countries, guaranteeing a constant and competitive supply.

Djibouti already has two efficient quarantine centres, through which more than 800,000 head of live cattle pass every year. Djibouti's ambition is now to take a new step forward by making the most of these animal resources, estimated at 150 million US dollars, through the implementation of this modern slaughterhouse project.

This project will incorporate strict international standards in terms of quality, traceability and hygiene. It will not only ensure the health safety of local consumers but also open access to the most demanding international markets.

The total cost of the project is expected to be around USD 30 725 000. The project's IRR is estimated at 31%, with an NPV of USD 35.6 million.