Djibouti is a free trade zone of northeast Africa. Two-thirds of the population of Djibouti live in its capital city. The country has a minimal arable farm land. There are many imported goods in Djibouti.

The common source of livelihood is livestock. Moreover, fishing industry also exists in the country. Islamic Development Bank gives excellent financial support to a canning factory.

Djibouti is said to be a transit port and an international transshipment center. Though the country is dependent on external assistance when talking about financing various development projects.

The country has a free-enterprise economy with a French military base performing a lot of economic and commercial activities.

The development of private sector investment (over $200 million) has greatly improved the economy.

According to the reports in September 2008, thousands of Djibouti residents got funding from CERF. As a result, a great number of refugees got help and financial support. In addition to this, WHO also made a contribution to prevention of deaths related with malnutrition during this time.