Page "Economy of Djibouti" Paragraph 8

With its position on the Red Sea, Djibouti holds a major strategic importance.

The facilities of the Port of Djibouti are important to sea transportation companies for fuel bunkering and refuelling.

Its transport facilities are used by several landlocked African countries for the re-export of their goods.

Djibouti earns transit taxes and harbour fees from this trade, these form the bulk of government revenue.

This strategic location also has ensured a steady inflow of foreign assistance.

The port of Djibouti functions as a small French naval facility, and the United States also has stationed hundreds of troops in Djibouti, its only African base, in an effort to counter terrorism in the region.