• Djibouti, Egypt sign port, logistics and energy cooperation agreements
• Deals include 23-MW solar plant to power Doraleh port operations
• Aim is to cut reliance on imported electricity and secure port infrastructure

Djibouti and Egypt signed several agreements on ports, logistics and energy on Saturday, Dec. 27, according to media reports. The deals were signed during a visit by Egyptian Vice Prime Minister Kamel El-Wazir to Djibouti and include a solar project to supply electricity to port infrastructure.

The agreements come at a time when Djibouti remains heavily dependent on imported electricity, mainly from Ethiopia. About 50% of the electricity consumed in Djibouti currently comes from Ethiopia, Energy Minister Yonis Ali Guedi said in a statement reported in April 2025.

This reliance leaves strategic infrastructure, particularly ports, exposed to supply constraints. Djibouti’s ports handle the bulk of the country’s foreign trade and serve as the main gateway for landlocked Ethiopia, a country of more than 120 million people.

More than 95% of Ethiopia’s commercial trade transits through Djibouti’s ports, according to official sources, making the corridor one of the busiest in the Horn of Africa. This drives up energy demand at port facilities for handling, storage and logistics operations.

Against this backdrop, the “Green Port Solar Project” included in the agreements with Egypt involves the construction of a 23-megawatt solar power plant combined with a battery storage system. The project aims to provide a dedicated power supply for operations at the Doraleh port.

Beyond energy, the agreements also cover the development of a container terminal and the expansion of activities at the Djibouti International Free Trade Zone, involving Egyptian firms.

The move reflects a broader regional push to upgrade corridors linking Ethiopia to Djibouti, with investments in road, rail and port infrastructure. This includes the port of Tadjourah, recently concessioned for 30 years to Saudi Arabia’s Red Sea Gateway Terminal.

Abdel-Latif Boureima