Djibouti Economy Profile - Doing Business 2019
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Doing Business 2019 Djibouti
Economy Profile
Djibouti
Page 1
Doing Business 2019 Djibouti
Economy Profile of Djibouti
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Djibouti
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Djibouti
Ease of Doing Business in DB 2019 Rank
Region Middle East & North Africa
190 1
Djibouti
Income Category Lower middle income 99
DB 2019 Ease of doing business score
Population 956,985
0 100
City Covered Djibouti Ville 62.02
DB 2019 Ease of Doing Business Score
0 100
67.19: Oman (Rank: 78)
62.02: Djibouti (Rank: 99)
58.56: Egypt, Arab Rep. (Rank: 120)
58.30: Regional Average (Middle East & North Africa)
49.06: Ethiopia (Rank: 159)
23.07: Eritrea (Rank: 189)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Djibouti
2
1
28
48
55
82
Rank
96
101
110 108
109 119
136 140
145
161
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Djibouti
100
85.73
81.67
80
67.87 68.91
64.23
59.37 60.85
58.17
Score
60
48.43
40
25.00
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Djibouti
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Djibouti
Starting a Business - Djibouti
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement DJF 0
City Covered Djibouti Ville
Indicator Djibouti Middle East & OECD high Best Regulatory
North Africa income Performance
Procedure – Men (number) 5 7.2 4.9 1 (New Zealand)
Time – Men (days) 13 20.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 41.9 22.6 3.1 0.0 (Slovenia)
Procedure – Women (number) 5 7.9 4.9 1 (New Zealand)
Time – Women (days) 13 21.2 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 41.9 22.6 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 8.1 8.6 0.0 (117 Economies)
Figure – Starting a Business in Djibouti and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
92.89: Oman (Rank: 37)
85.73: Djibouti (Rank: 96)
84.11: Egypt, Arab Rep. (Rank: 109)
82.00: Regional Average (Middle East & North Africa)
70.79: Ethiopia (Rank: 167)
51.91: Eritrea (Rank: 187)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Djibouti
Figure – Starting a Business in Djibouti – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
30
12
Cost (% of income per capita)
25
10
20
Time (days)
8
15
6
10
4
2 5
0 0
1 2 3 *4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Djibouti
Details – Starting a Business in Djibouti – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Deposit the initial capital at the bank and obtain a receipt 2 days no charge
Agency : Bank
The bank must check the origin of the funds and the purpose of the initial capital.
The parties must submit a document stating their intent to start a new business.
2 Draft the company's articles of association with a lawyer 3 days DJF 90,000
Agency : Notary or lawyer
There is no legal obligation to draft the company statutes with a lawyer and since
February 2014, statute templates are available online at the ODPIC website
(www.odpic.info). However, most entrepreneurs still draft the company statutes
with a lawyer.
Lawyers and notaries charge approximately FCFA 90,000 to draft the statutes.
3 Reserve the company name with ODPIC, register with the Companies 5 days See procedure
Registry, publish the notice of commencement of activity, register the comments
articles of association with the Hôtel des Impôts, register for taxes and
register employees with the CNSS
Agency : Guichet Unique
Djibouti implemented a new Guichet Unique in 2017. In order to register a new
company at the Guichet Unique, the following documents are required:
- forms CN1 and RC1
- 2 certified copies of the articles of association
- 2 copies of the bank deposit receipt
- 2 sworn statement copies or 2 copies of the criminal record.
The information provided by the entrepreneur is then transferred internally to the
Guichet Unique’s institutional partners, namely the ODPIC, the Hôtel des Impôts,
and the CNSS. Entrepreneurs can ask to register the company’s articles of
association, obtain the reservation of the company name, register with the
Companies Registry and obtain a professional license (patente) during their
registration at the Guichet Unique.
The Guichet Unique is also in charge of the publication of the notice of
commencement of activity in its website (http://www.guichet-unique.dj/annonces-
legales).
The registration fees are: DJF 18,000 registration fees (immatriculation), DJF
5000 name reservation, DJF 1000 service fee of the Guichet Unique, DJF 10,000
for the registration of the articles of association and DJF 1000 per page for the
stamp duty
4 Pay the fees with the payment agent 1 day (simultaneous No cost
Agency : Guichet Unique with previous
After his/her interaction with front desk, the user then interacts with the payment procedure)
agent, to whom he/she pays the fees for all agencies (ODPIC, the Hôtel des
Impôts, and the CNSS)
5 Create a company seal, letterhead and books 3 days DJF 2,000 - 3,000
Agency : Seal-making shop (for seal and
Creating a company seal, letterhead and books can be done at the Seal-maker letterhead) + DJF
for DJF 2000 - 3000 (for seal and letterhead) + DJF 5000 - 7000 (books).
5,000 - 7,000 (books)
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Djibouti
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
• Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Djibouti
Dealing with Construction Permits - Djibouti
Standardized Warehouse
Estimated value of warehouse DJF 16,989,970.80
City Covered Djibouti Ville
Indicator Djibouti Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 17 16.6 12.7 None in 2017/18
Time (days) 148 137.4 153.1 None in 2017/18
Cost (% of warehouse value) 5.1 4.7 1.5 None in 2017/18
Building quality control index (0-15) 12.0 12.1 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Djibouti and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
72.05: Oman (Rank: 66)
71.77: Egypt, Arab Rep. (Rank: 68)
67.87: Djibouti (Rank: 101)
59.17: Regional Average (Middle East & North Africa)
52.84: Ethiopia (Rank: 168)
0.00: Eritrea (Rank: 186)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Djibouti – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
3
140
2.5
Cost (% of warehouse value)
120
100 2
Time (days)
80
1.5
60
1
40
0.5
20
0 0
1 2 3 4 5 6 7 8 9 10 11 12 * 13 * 14 * 15 16 * 17
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2019 Djibouti
Figure – Dealing with Construction Permits in Djibouti and comparator economies – Measure of Quality
15 14.0
12.0 12.1
11.0
Index score
10
7.0
5
0
No Practice
Djibouti Egypt, Arab Rep. Eritrea Ethiopia Oman Middle East & North Africa
Details – Dealing with Construction Permits in Djibouti – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain lot plan and a certificate of registration 2 days no charge
Agency : Cadastre - Direction des Domaines et Conservation foncière
BuildCo must obtain a certified zoning map and a certificate of registration in
order to apply for a permis de remblai.
2 Apply and obtain a "permis de remblai" (embankment) at the Direction de 7 days no charge
l'Habitat et l'Urbanisme
Agency : Department of Housing and Urban Development (Direction de l'Habitat
et l'Urbanisme)
To apply and obtain an embankment permit, BuildCo must submit:
• A letter
• A registration certificate issued by the Direction des Domaines et de la
Conservation Fonciere
• A location plan/urbanisme plan issued by the cadastre service at the Direction
des Domaines et de la Conservation Fonciere
Upon this request, the Direction de l'Habitat et l'Urbanisme will issue a "permis
de remblai" and its volume.
3 Apply for the certificate of compliance for embankment 1 day no charge
Agency : Direction de l'Habitat et l'Urbanisme
Once the works for the embankment are authorized, BuildCo must request the
certificate of compliance from the Direction de l'Habitat et l'Urbanisme (DHU). In
order to do so, BuildCo must file a copy of the permis de remblai and an
application letter.
DHU will inspect the site to verify that the specifications for the embankment
were respected. If satisfied, the request for a certificate of compliance is
transmitted to the Laboratoire Central du Bâtiment et de l'Equipement (LCBE).
LCBE will verify the compactness of the soil.
4 Receive inspection to verify the compactness of the embankment from the 1 day DJF 90,000
LBCE
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
The LBCE -- Laboratoire Central du Bâtiment et de l'Equipement -- will inspect
the embankment. The cost that LBCE offers for a test of compactness is DJF
6,000.00 for every 200 sq. m. at a depth of 30 cm.
It is assumed that BuildCo will request a depth of 90 cm. Therefore for a plot of
land of 929 sq. m. and a compactness of 0.9 m, the cost paid by BuildCo's would
be land (DJF 6,000.00 * (5 * 3)) = DJF 90,000.00.
If LBCE is satisfied that the compactness is adequate, they will transmit the
signed request to DHU for the issuance of the certificate of compliance for the
embankment.
5 Obtain certificate of compliance for the embankment (certificat de 14 days no charge
conformite de remblai)
Agency : Direction de l'Habitat et l'Urbanisme
Once the signed document from LBCE is received, the Direction de l'Habitat et
l'Urbanisme will issue the certificate of compliance (certificat de conformité de
remblai) for BuildCo.
Page 11Doing Business 2019 Djibouti
6 Request and obtain final ground plans (plan de masse cadastral) 7 days DJF 83,610
Agency : Sous Direction de la Conservation Foncière (de la Direction des
Domaines et de la Conservation Foncière)
After obtaining the permit and certificate of compliance for the embankment,
BuildCo must request and obtain the final ground plans at the Sous Direction de
la Conservation Foncière (de la Direction des Domaines et de la Conservation
Foncière). A tax on embankment must be paid: DJF 100.00 per cubic meter.
This map defines the boundaries of the land and must be attached to the
application for the building permit, or else the application will not be accepted by
the DHU. Sub-Directorate of Lands and Land Conservation will identify a date to
issue the Plan de Masse Cadastral and the final pegs installation on the lot.
7 Obtain building permit 15 days DJF 424,749
Agency : Direction de l'Habitat et l'Urbanisme
BuildCo must submit 6 copies of the file for the building permit request to the
DHU (Direction de l'Habitat et l'Urbanisme).
The 2.5% tax that the company must pay is divided as follows:
• 1.5% for analysis of the request for the building permit
• 1.0% for the surveillance of the concrete structure (study and works)
8 Request and receive foundation inspection from the Direction de l'Habitat 14 days no charge
et l'Urbanisme, Sous-direction Contrôle et Réglementation
Agency : Direction de l'Habitat et l'Urbanisme, Sous-direction Contrôle et
Réglementation
The works begin when the concrete plans are accepted by the Sous-direction
Contrôle et Réglementation. An inspection takes place when slabs are laid. This
procedure is not mandatory but is standard practice.
9 Receive first concrete test from the LBCE- Laboratoire Central du Bâtiment 7 days DJF 172,800
et de l'Equipement (at foundation level)
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
Construction testing occurs at each phase of the building process. Concrete
crushing test is done at 7 days, then at 14 days and final one at 21 days.
10 Receive second resistance test from the LBCE- Laboratoire Central du 7 days no charge
Bâtiment et de l'Equipement (for the ground level)
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
This is the second concrete crushing test done 7 days after the first one.
11 Receive final resistance test from the LBCE- Laboratoire Central du 7 days no charge
Bâtiment et de l'Equipement (for the first level)
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
This is the final concrete crushing test done 7 days after the second test was
done.
12 Request and receive an earthquake certificate issued by the Direction de 2 days no charge
l'Habitat et l'Urbanisme
Agency : Direction de l'Habitat et l'Urbanisme
To obtain the certificate of conformity after construction is complete, it is
mandatory to obtain an earthquake certificate issued by the Direction de l'Habitat
et l'Urbanisme. BuildCo can request this certificate by visiting the agency in
person. The earthquake certificate is obtained as soon as the different slabs
have been casted from the Sous-Direction Contrôle de la Direction de l'Habitat et
de l'Urbanisme on the basis of "good casting." The certificate is issued the next
day after verification of compliance with seismic standards. BuildCo does not
have to wait for the completion of the construction to request this certificate.
Request and receive an electrical certificate of compliance 4 days no charge
13 Agency : Direction de l'Habitat et l'Urbanisme
To obtain the certificate of conformity after construction is complete, it is
mandatory to obtain an electrical certificate of compliance issued by the
Department of Housing and Urban Development. The electrical certificate of
compliance can be requested once the internal wiring is done in compliance with
the standards.
Officers from the Sous-Direction de l'Urbanisme will conduct a site visit and the
electrician will explain the internal wiring to the officers. The inspection takes
place one day after the request for the certificate of compliance. After 1-2 days,
the Sous-Direction de l'Urbanisme issues the electrical certificate of compliance.
Page 12Doing Business 2019 Djibouti
Request and receive an alignment certificate 2 days no charge
14 Agency : Direction des Domaines et de la Conservation Foncière
To obtain the certificate of conformity after construction is complete, it is
mandatory to obtain an alignment certificate issued by the Direction des
Domaines et de la Conservation Foncière.
Request and receive the sanitary certificate issued by the National Institute 2 days no charge
15 of Public Health
Agency : National Institute of Public Health (l’Institut National de Santé Publique
de Djibouti)
To obtain the certificate of conformity after construction is complete, it is
mandatory to obtain sanitary certificate for the septic tank issued by the National
Institute of Public Health in Djibouti.
16 Submit all certificates of compliance and obtain final certificate of 14 days no charge
compliance (certificat de conformité)
Agency : Ministry of Housing (Ministère de l’Habitat)
Compliance of new construction is confirmed by the issuance of a Certificate of
General Conformity issued by the Department of Housing and Urban
Development at the end of the work.
This certificate attests the conformity of the building in accordance to the
approved building permit. Several compliance certificates must be submitted:
earthquake, sanitation, alignment, foundation and electrical
Request and receive water and sewage connection 60 days USD 500
17 Agency : Office Nationale des Eaux de Djibouti (ONED)
For the sewage network a health certificate is issued by the Department of
Epidemiology and Health Information, which is obtained in procedure 15.
The water company provides the meter at no charge and BuildCo lays down the
pipes to connect it to the main line.
Takes place simultaneously with previous procedure.
Page 13Doing Business 2019 Djibouti
Details – Dealing with Construction Permits in Djibouti – Measure of Quality
Answer Score
Building quality control index (0-15) 12.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge;
In official gazette.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) engineer.
Quality control during construction index (0-3) 3.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections at 2.0
(0-2) various phases;
Risk-based
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, in-house 2.0
with the approved plans and regulations? (0-2) engineer submits
report for final
inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering.
What are the qualification requirements for the professional who supervises the construction Minimum number 1.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management.
Page 14Doing Business 2019 Djibouti
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
obtaining final supply - Has two stories with a total surface area of approximately 1,300.6 square meters
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
income per capita) because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 15Doing Business 2019 Djibouti
Getting Electricity - Djibouti
Standardized Connection
Price of electricity (US cents per kWh) 25.5
Name of utility Electricité de Djibouti (EDD)
City Covered Djibouti Ville
Indicator Djibouti Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 4 4.7 4.5 3 (25 Economies)
Time (days) 52 72.4 77.2 18 (3 Economies)
Cost (% of income per capita) 941.8 479.9 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 0 4.2 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Djibouti and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
79.34: Oman (Rank: 66)
71.41: Egypt, Arab Rep. (Rank: 96)
69.45: Regional Average (Middle East & North Africa)
64.23: Djibouti (Rank: 119)
59.71: Ethiopia (Rank: 131)
0.00: Eritrea (Rank: 187)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 16Doing Business 2019 Djibouti
Figure – Getting Electricity in Djibouti – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
900
50
800
Cost (% of income per capita)
40 700
600
Time (days)
30
500
400
20
300
200
10
100
0 0
1 2 3 4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Djibouti and comparator economies – Measure of Quality
8
7
7
6
Index score
5
4.2
4
3
3
2
1
0 0
0
No Practice
Djibouti Egypt, Arab Rep. Eritrea Ethiopia Oman Middle East & North Africa
Page 17Doing Business 2019 Djibouti
Details – Getting Electricity in Djibouti – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Electricité de Djibouti and await inspection 10 calendar days DJF 0
Agency : Electricité de Djibouti (EDD)
The application is typically submitted to Electricité de Djibouti (EDD) in person at
the single window or one of their agencies. A detailed load schedule should be
attached to the application. The applicant will also need to show the original
building permit and property title - for which the utility will immediately make a
copy.
Once the application is lodged, it is sent to the design and planning office of
EDD. They will proceed to send a technician on-site to determine the
specifications of the connection.
2 Receive external inspection by Electricité de Djibouti and await estimate 5 calendar days DJF 0
Agency : Electricité de Djibouti (EDD)
Electricité de Djibouti (EDD) inspects the site to determine (i) the feasibility and
specifications of the connection and (ii) the amount the customer will need to pay
for the connection fees. Following the inspection, the quote is transferred
internally - from the secretariat to the service manager to, finally, the customer
service department. The client will, in turn, be notified that the estimate is ready,
which he/she needs to pay directly on-site.
3 Pay estimate and obtain external works from Electricité de Djibouti 30 calendar days DJF 2,777,274
Agency : Electricité de Djibouti (EDD)
It is preferable to apply Tariff 3 (Low Voltage) which is more advantageous than
Tariff 11 (MT).
After paying the connection fees, EDD will proceed to carry-out the external
connection works. And for an electricity connection for the warehouse considered
in this case study, an overhead connection to the low voltage is most likely.
4 Sign supply contract and obtain final connection 7 calendar days DJF 422,897.33
Agency : Electricité de Djibouti (EDD)
When the external works are completed, the client needs to sign a supply
contract and deposit his/her "avance sur consommation" (security deposit) at one
of the agencies of EDD. After this, EDD can proceed with the electricity supply
turn-on.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2019 Djibouti
Details – Getting Electricity in Djibouti – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.edd.dj/ed
dweb/upload/tarif_20
16.pdf
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2019 Djibouti
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 20Doing Business 2019 Djibouti
Registering Property - Djibouti
Indicator Djibouti Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 6 5.6 4.7 1 (4 Economies)
Time (days) 24 29.7 20.1 1 (New Zealand)
Cost (% of property value) 5.7 5.7 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 7.0 14.2 23.0 None in 2017/18
Figure – Registering Property in Djibouti and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
74.03: Oman (Rank: 52)
62.11: Regional Average (Middle East & North Africa)
58.17: Djibouti (Rank: 110)
55.00: Egypt, Arab Rep. (Rank: 125)
51.33: Ethiopia (Rank: 144)
35.30: Eritrea (Rank: 180)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Djibouti – Procedure, Time and Cost
Time (days) Cost (% of property value)
7
6
20
Cost (% of property value)
5
Time (days)
15
4
10 3
2
5
1
0 0
1 2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2019 Djibouti
Figure – Registering Property in Djibouti and comparator economies – Measure of Quality
30
25
Index score
20
15 13.5 14.2
10 9.0
7.0 6.5 6.0
5
0
Djibouti Egypt, Arab Rep. Eritrea Ethiopia Oman Middle East & North Africa
Details – Registering Property in Djibouti – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Buyer and seller go to the notary with the title to draft the sale-purchase 1 day DJF 965,498.54; (2%
agreement of property value
Agency : Notary (mutation fee) + 3%
The property folder (dossier foncier) will already be in possession of the seller.
of property value
The folder contains the following documents: the property title, a cadastral plan of
(transfer fee) +
the property, the acquisition price of the previous sale, the names of the owners,
40,000 F to 180,000
and the surface area of the land. The Notary must draft the sale and purchase
agreement. The costs for any property transfer is 3% of the property value (law F (notary fees) +
n°005/ AN/18/8èmeL modifying the General Fiscal Code). 1000 F per page (x 6,
stamp duties))
2 Notary checks for mortgages or liens on the property 3 days DJF 2,500
Agency : Conservation de la propriété foncière
The Notary check that the property has no liens or charges at the Service des
Domaines (Conservation de la Propriété Foncière) and asks for a complete list of
documents affecting the property (fiche de renseignement sur un titre foncier).
The Director of the Service des Domaines has to sign the papers for its official
validity and obtaining the signature may take some time.
3 Notary proceeds to tax authorities to check status of the property and 7 days no charge
capital gains
Agency : Tax Authority
The Notary submits a copy of the sale-purchase agreement to the Tax Authority
to determine the capital gain. After receiving the capital gains tax (if there any to
be paid), the notary could convene the parties for the signature of the sale-
purchase agreement.
Tax Authority must always be consulted to determine the capital value as a
requirement before the signing of the sale agreement. In the majority of cases,
the tax authorities re-estimate the selling price (70% of cases) for the payment of
the additional amount of capital gain, and this step can take up to a week.
4 Parties return to the notary to sign the sale-purchase agreement 1 day (already paid in
Agency : Notary Procedure 1)
At this point, the buyer pays the seller a deposit. If there are capital gains to be
paid the seller will pay them at a rate of 5%.
5 Notary registers the sale agreement with the tax authority. 3 days 3% property value
Agency : Tax Authority (already paid in
The sale-purchase agreement is notarized (acte de vente) and then it's Procedure 1) + 1000
registered with the Tax Authority (bureau de l’Enregistrement et du Timbre).
F per page (x 6,
Payment of registration fees will be made directly at l’Hôtel des Impôts.
stamp duties already
paid in Procedure 1)
6 Notary requests a name change on behalf of the new owner at the 9 days 2% property value
Conservation de la propriété foncière (already paid in
Agency : Conservation de la propriété foncière Procedure 1)
This Procedure is a mere conversion, not a new act of registration and it will take
place approximately 10 months after provisional registration. The Procedure
involves checking all records, which are paper-based, and all history of
transactions relevant to the property.
Takes place simultaneously with previous procedure.
Page 22Doing Business 2019 Djibouti
Details – Registering Property in Djibouti – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 3.0
What is the institution in charge of immovable property registration? Service des
Domaines et de
la Conservation
Fonciere
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Service des
Domaines et de
la Conservation
Fonciere
In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Single database 1.0
or mapping agency kept in a single database, in different but linked databases or in separate
databases?
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 1.5
Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0
property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: https://www.djibo
utinvest.com/atta
chments/article/3
53/Document%2
0exig%C3%A9%
20pour%20le%2
0Transactions%2
0Fonci%C3%A8r
e.pdf
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access:
Does the agency in charge of immovable property registration commit to delivering a legally Yes, online 0.5
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access: https://www.djibo
utinvest.com/atta
chments/article/3
53/FORMALITES
%20AU%20NIVE
AU%20DE%20L
A%20%20CONS
ERVATION%20F
ONCIERE.pdf
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Page 23Doing Business 2019 Djibouti
Contact information:
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2017:
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, in person 0.0
and if so, how?
Link for online access:
Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5
specific time frame—and if so, how does it communicate the service standard?
Link for online access: http://www.djibout
invest.com/attach
ments/article/353
/FORMALITES%
20AU%20NIVEA
U%20DU%20%2
0CADASTRE.pdf
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 0.0
Are all privately held land plots in the economy formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the largest business city formally registered at the No 0.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? No 0.0
Land dispute resolution index (0–8) 2.5
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? No 0.0
Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar; Notary;
Lawyer;
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Registrar; Notary;
Lawyer;
Is there a national database to verify the accuracy of identity documents? No 0.0
For a standard land dispute between two local businesses over tenure rights of a property Tribunal civil
worth 50 times gross national income (GNI) per capita and located in the largest business
city, what court would be in charge of the case in the first instance?
How long does it take on average to obtain a decision from the first-instance court for such a More than 3 0.0
case (without appeal)? years
Are there any statistics on the number of land disputes in the first instance? No 0.0
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