How the tiny country of Djibouti became a major world player

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Djibouti is a tiny country on the Horn of Africa with no significant natural resources, but it hosts multiple major foreign military bases located in close proximity. Why is that?

There are clear geographic reasons that intersect with external and national political and security interests, as well as with significant international and domestic economic benefits of hosting these militaries.

Djibouti sits on the Bab-el-Mandeb Strait, an essential international maritime transit route between the Red Sea and the Indian Ocean. This geographic position has provided the country with considerable strategic and political leverage over global shipping and military activity.

As 12% of global maritime trade, including 40% of Asia-Europe trade and nearly 90% of Japan’s oil imports, passes through the Bab el-Mandeb Strait, Djibouti’s strategic location remains highly attractive to many global and regional powers. Particularly in light of current trade disruptions in the Strait of Hormuz and the serious security threats posed by Yemen's Houthis in the Red Sea, Djibouti is increasingly regarded as a reliable partner among major geopolitical actors.

The country’s geographic position is also important for digital connectivity, as it hosts around a dozen submarine fiber-optic cables that transmit massive volumes of internet data between Asia, Europe and Africa. Consequently, the protection and security of these cables remain priorities for many nations.

Djibouti has managed to use the instability in neighboring Somalia and Yemen to present itself as a stable country in this deeply troubled region, especially through offering military base leases to foreign powers. Moreover, the broader geopolitical crisis unfolding in the Strait of Hormuz has also drawn attention to Djibouti’s potential future role in regional security, as global hubs of trade and connectivity have become increasingly monitored and valued.

Geography at the center of Djibouti’s strategic advantage

Djibouti's geographic position along the Bab el-Mandeb Strait, a strategic maritime passage, remains the country's leading competitive advantage and has greatly contributed to the establishment of multiple foreign military bases.

France was the first country to establish a military presence in Djibouti, immediately after the country declared independence from French colonial rule in 1977. In 2003, following the 9/11 terrorist attacks, the U.S. opened a military base adjacent to Djibouti-Ambouli International Airport, which remains the largest foreign military base in the country, housing around 4,000 personnel. Japan stationed its troops there in 2011, followed by Italy in 2012. In 2017, China opened its first and only formal military base in Djibouti City, near the Port of Doraleh.

In addition to these major foreign military bases, Djibouti hosts several smaller and shared military deployments, including Spanish and German contingents stationed at French military facilities. Saudi Arabia is currently negotiating the establishment of a military base in the country, while Russia and India have also expressed interest in establishing a military presence in this strategically located African state.

On the one hand, all countries with present military bases in Djibouti have strong political and security interests, which are also intertwined with economic factors, particularly the need to keep one of the globally important trade routes secure and operational.

On the other hand, Djibouti’s leadership is aware of the numerous advantages of hosting the militaries of several major powers simultaneously and maintaining balanced relations with each of them, a strategy that has proven effective with the coexistence of American and Chinese bases in close proximity.

While this situation has not been well received by the U.S., which may affect Djibouti-American relations in the future, potentially prompting the relocation of the U.S. military base, for now Djibouti can still leverage its geographic position and, through its diplomatically balanced approach, host the military forces of any country that serves its national sovereignty and interests.

Political and security interests

The geopolitical and strategic reasons for countries to maintain a military presence in Djibouti range from securing one of the world’s most important shipping routes and combating regional terrorist activities to increasing their geopolitical power and influence.

However, these reasons vary among foreign military powers operating in Djibouti, which could deepen rivalries and create conflicting alliances. Country-specific interests are most evident in the distinctive strategic agendas of the U.S. and China. While China focuses on protecting its considerable investments in regional infrastructure under its Belt and Road Initiative, U.S. military engagement is more oriented toward counterterrorism and anti-piracy activities.

Moreover, the Western security frameworks pursued by foreign powers such as the U.S., France and Italy differ from the strategic objectives of countries like China, potentially leading to increased geopolitical tensions and competition for influence in the region rather than promoting international cooperation.

For Djibouti, military leasing is politically and strategically beneficial, since the presence of foreign military bases can act as a deterrent against potential external attacks and provide opportunities for the Djiboutian army to train with and learn from these foreign military forces.

With multiple military bases, Djibouti can act as a secure and stable state in a volatile region, which keeps domestic and regional threats and instabilities in check.

Djibouti’s proactive diplomacy attracts foreign powers and establishes the country as an important geostrategic player in East Africa and beyond. This approach also allows for greater domestic political cohesion and the long-lasting leadership of the current president, who has been in power since 1999.

Economic reasoning

Unlike the diverse geopolitical interests among states with military bases in Djibouti, economic objectives are more aligned and shared. In particular, ensuring the uninterrupted operation of the Bab el-Mandeb Strait, as any disruption to this corridor can have global economic repercussions, represents a strong economic incentive for maintaining a military presence in the region.

Djibouti also derives significant economic benefits from allowing foreign powers to establish military bases on its soil. Financial gains from military leasing are substantial and support the national economy, especially given that the country does not possess significant natural resources and relies heavily on the service sector.

Djibouti’s military leasing model provides a steady source of income for the country's budget. Besides such direct monetary contributions, foreign military presence contributes to the Djiboutian economy through infrastructure and logistics development. It also helps increase local employment and services. However, all these economic benefits are limited and unevenly distributed, which continues to contribute to inequality and poverty in the country.

Geostrategic location and political ingenuity

In international relations where national power plays a significant role, each country is looking for its advantages and assets to transform them into leverage for strengthening its position in relation to other states.

Djibouti’s balanced and proactive diplomacy, reflected in the hosting of a large number of foreign military bases, diversifies the country’s partnerships, which concurrently contributes to avoiding political and economic dependence on a single player and strengthening its security in an unstable neighborhood.

However, as the geopolitical situation is prone to change, Djibouti has to closely monitor any regional political shifts, especially concerning the growing importance of Somaliland, which has already drawn foreign attention and capital.

Moreover, decisions regarding which countries to host on its territory may also trigger unwanted tensions and compromise existing productive bilateral relations. For these reasons, a cautious, flexible and calculated approach remains the key to Djibouti's future success in military hosting diplomacy.

Read more:

• Who are the Houthis, Iran's allies in Yemen?
• Yemen's Houthis deny plans to impose fees on ships sailing through Red Sea

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Djibouti Bab el-Mandeb Red Sea Africa military bases East Africa USA