By Dai Qi
Djibouti International Free Trade Zone contracted to be built by Chinese enterprises will become Africa's largest region for free trade in 10 years, Xinhua reported Sunday.
Three Chinese companies were involved in the investments, construction and operation of the free trade zone (FTZ) with the Djibouti government, namely the China Merchants Group, Port of Dalian and a big data company, the IZP Technologies.
Commenced in January 2017, the FTZ has a planned total area of 48.2 square kilometres and will become the largest free trade zone in Africa.
It is intended to attract enterprises in industries like logistics, trade, automobile, machinery, building materials, marine food processing, etc, to set up factories.
The first phase of the project is 6 square kilometres long.
At present, all the infrastructure facilities in this area have been completed. More than 20 enterprises have signed the letter of intent to enter the park.
An opening ceremony of the first phase was held last Thursday. The entire zone will be completed in 10 years with a cost of USD 3.5 billion.
According to the Port of Dalian, the "Shekou Model" of China's Shenzhen City will be introduced to the Djibouti International Free Trade Zone.
Both hardware, including the port, the port-surrounding parks, roads and commercial facilities, as well as software, like customs clearance, payment settlement, and big data, will be built.
An official of the Djibouti port and the FTZ administration said to the Global Times this March that the FTZ would become a new hub on "the Maritime Silk Road."
Djibouti's long-term strategy is to capitalise on its strategic location and transform its economy to become a global trade hub.
The country is located on the north gate of the Red Sea, connecting Asia, Europe and Africa.
