A pair of Chinese companies recently announced they were teaming up to build a massive new spaceport in Djibouti. If you were like me, you probably wondered: where is Djibouti? And why is China building a spaceport there?
Great questions. Let’s find out.
The Spaceport
Location: Obock Region, Djibouti
Region: Horn of Africa
Partners: Hong Kong Aerospace Technology Group (HKATG), Touchroad International Holdings Group, Djibouti government
Size: 10 sq km (3.86 sq miles) minimum
Cost: $1 billion
Construction Time: 5 Years
Launch Pads: 7
Engine Test Facilities: 3
Lease Length: 30 years
Tenants: TBA
HKATG and Touchroad signed a memorandum of understanding with the Djibouti government to build and operate the spaceport. Construction is expected to begin after the three parties sign a formal agreement in March.
The spaceport’s location means that launches will take place to the east over the Gulf of Aden. Launching to polar or sun synchronous orbits would require rockets to fly over inhabited areas.
HKATG explained the benefits of the deal in a business update.
Facing the high demand for commercial satellite launches in China in recent years, the demand for launch pads has been far outstripping supply, the development of Djibouti’s Spaceport will break the restrictions of the existing business model and have a positive impact on HKATG’s business development.
The President of the Republic of Djibouti believes that the signing of the MOU will enhance Djibouti’s technological capabilities and status. The local government expects that the spaceport project will stimulate the local economy and bring job opportunities to the local people. It is worth mentioning that in addition to focusing on infrastructure construction, all parties will also work together to set up research centers, and universities, and provide aerospace technology, products, services, and projects. This will further promote regional international cooperation and enhance HKATG’s position in the international commercial satellite market.
China launched 64 times in 2022 from four spaceports and platforms in the East China and Yellow seas. The nation is forecasting more than 70 launches this year.
There has been no announcements about which Chinese rockets will launch from the facility. HKATG and the Djiboutian government will manage the spaceport for a period of 30 years. The government will then take control over the facility.
The Djiboutian government said the project will require the development of a port facility, a network of highways, and a power grid.
HKATG’s core business is building, designing and manufacturing satellites. The company has performed satellite engineering for the Golden Bauhinia and Aurora satellite constellations. HKATG owns five technical and manufacturing centers in China.
Touchroad International has been “conducting businesses in Africa for over 20 years with exposures in various industries and projects including the development and construction of special economic zones in the Republic of Djibouti, mineral extraction, international trade, and cultural exchange and tourism,” HKATG said.
China’s Growing Involvement in Djibouti
The spaceport represents a major expansion of China’s involvement in Djibouti, which is strategically located at on the Gulf of Aden at the southern entrance to the Red Sea. Approximately 30% of global container traffic with more than $1 trillion worth of goods transit through the Red Sea and Suez Canal. Twelve percent of all global trade passes through the canal.
Both China and the United States have military bases in Djibouti. France, Italy and Japan also have military bases in the country.
China invested $853 million in Djibouti between 2005 and 2019, undertaking a number of development projects through its Belt and Road Initiative. Thirty percent of Djibouti’s total debt is now owned to China.
China built a high-capacity standard gauge railway that terminates at the Port of Doraleh. Chinese companies also financed and built the Djibouti’s Damerjog port used to ship livestock, bulk liquids and other goods.
In 2013, Djibouti’s removed Dubai-based DP World as operator of the Port of Doraleh’s Terminal Container by presidential decree and awarded it to China Merchants Ports Holdings. Djibouti has ignored seven rulings from the London Court of International Arbitration that the decision was illegal and that DP World’s concession should be restored. The government awarded a 25% stake in the Doraleh port to China Merchants Ports Holdings in January 2020.
All About Djibouti
Djibouti was a French colony from 1883 until 1977 when the people voted for independence.
Nation and Economy
- 23,200 sq km (8,958 sq miles)
- Roughly the size of New Hampshire
- Population of 967,273 in 2018 (New Hampshire: 1,377,529)
- Population 94% Muslim, 6% Christian
- Gross domestic product of $2.187 billion in 2018 (New Hampshire: $83.9 billion)
- Per capita income of $2,084 in 2018 (New Hampshire: $56,029)
- Climate ranges from semi-arid to arid
- Ranked 122nd out of 167 nations on the 2021 Legatum Prosperity Index
- Ranked 120th freest economy by Heritage Foundation
Djibouti is a poor country with a high level of unemployment of up to 60% in urban areas. The economy is dominated by service industries. The nation’s port facilities handle exports from and imports to neighboring Ethiopia. They also serve as a refueling center for international shipping.
Djibouti’s arid and semi-arid climate means that vegetables and fruits are the nation’s principal crops. Other foodstuffs need to be imported.
Political System
- Unitary presidential republic under a hereditary dictatorship
- President: Ismaïl Omar Guelleh
- First elected: 1999
- Elections won: five
- Percentage of vote won by president: 80-100
- Presidential term limits: none
- Rated “Not Free” by Freedom House
- Rated 24 out of 100 points on political rights and civil liberties by Freedom House
- Ranked 128 out of 180 nations on Transparency International’s Corruption Perceptions Index
Think of Djibouti as a smaller, African version of Vladimir Putin’s Russia: an authoritarian state with the trappings of democracy. The president is re-elected by massive margins without term limits, his political party dominates the National Assembly, and basic rights such as speech, assembly and press are restricted.
“…the ruling Union for a Presidential Majority (UMP) uses authoritarian means to maintain its dominant position. The opposition’s ability to operate is severely constrained, and journalists and activists who air criticism of Guelleh or the UMP are regularly harassed or arrested,” Freedom House noted.
“While Djibouti technically has a multiparty political system, parties must register with the government to operate legally. The authorities have denied recognition to a number of opposition parties; members of such parties have been periodically harassed, arrested, and prosecuted, and their offices have been raided by police. The law requires the leaders of political parties to have clean criminal records, and the government has pursued spurious charges against opposition figures to disqualify them or their parties,” Freedom House said.
Djibouti’s government has been a family affair since independence from France. President Ismaïl Omar Guelleh was the handpicked successor of his uncle, Hassan Gouled Aptidon, who served as president from independence in 1977 until his retirement 22 years later in 1999. Guelleh defeated independent candidate Moussa Ahmed Idriss with 74.02% of the vote. Idriss was later arrested for “threatening the morale of the armed forces” and held at an undisclosed location.
Guelleh proceeded to win reelection four times using all the tricks in the international autocrat’s playbook. To wit:
- 2005: Guellah runs unopposed and wins 100 percent of the vote promising he would not for another term.
- 2010: National Assembly changes Constitution to allow Guellah to run for another term.
- 2011: Guellah wins a third term with almost 80% of the vote, once again promising he won’t run again. Opposition parties boycotted the vote, and their leaders were jailed.
- 2016: Guellah wins a landslide with 87% of the vote. Opposition parties again boycotted the vote, which critics say was marred by government repression and police brutality.
- 2021: The president wins again with 97.3% of the vote. Another opposition boycott amid charges of ballot-box stuffing and the barring of election monitors from polling stations.
During his nearly 24 years in office, Guelleh’s family members and relatives have served in key positions. They include:
- Kadra Mahamoud Haid (wife): de-facto vice president
- Haibado (daughter): key advisor
- Djama Elmi Okieh (son-in-law): minister of health
- Saad Omar Guelleh (half brother): general manager, Port of Djibouti
- Djama Ali Guelleh (first cousin): director general of state-owned utilities company Electricité de Djibouti (EDD) since 1986.
A leaked message from the US Embassy in 2004 described Djibouti as “less a country than a commercial city state controlled by one man, Ismail Omar Guelleh.”
