Nestled on the northeastern coast of Africa, Djibouti may be one of the smallest countries on the continent, but its strategic location has made it a focal point of global power struggles for centuries. From ancient trade routes to modern military bases, this tiny nation has played a pivotal role in shaping the geopolitics of the Horn of Africa.
In today’s world, where maritime security, global trade, and superpower rivalries dominate headlines, Djibouti’s history offers crucial insights into why this nation remains a hotspot in 21st-century geopolitics.
Djibouti’s history stretches back to antiquity, with some scholars linking it to the fabled Land of Punt, a trading partner of ancient Egypt. The region was a crucial node in the incense and spice trade, connecting the African interior with the Arabian Peninsula and beyond.
By the medieval period, Islam had taken root in the region, and the Adal Sultanate (9th–16th centuries) emerged as a dominant power. This kingdom engaged in fierce conflicts with the Christian Ethiopian Empire, most notably under the leadership of Ahmed al-Ghazi (Ahmed Gurey), whose wars reshaped the region’s religious and political landscape.
In the late 19th century, as European powers carved up Africa, France established control over Djibouti, naming it French Somaliland. The colony’s primary purpose was to secure a coaling station for steamships traveling through the newly opened Suez Canal (1869), a vital artery of global trade.
One of France’s most enduring legacies was the Ethiopia-Djibouti Railway, completed in 1917. This infrastructure project tied landlocked Ethiopia to Djibouti’s port, a relationship that remains economically crucial today.
After decades of nationalist movements, Djibouti finally gained independence in 1977 following a referendum. Unlike many African nations that descended into chaos post-independence, Djibouti maintained relative stability—largely due to its strategic value.
During the Cold War, Djibouti’s government skillfully navigated between superpowers. While hosting a French military base, it also allowed limited Soviet access, ensuring it remained a neutral but indispensable player in regional security.
In recent years, China’s Belt and Road Initiative (BRI) has transformed Djibouti’s infrastructure. The Doraleh Multipurpose Port, partly financed by China, has sparked debates about debt-trap diplomacy. Meanwhile, the Djibouti government’s seizure of the port from Dubai’s DP World in 2018 led to international arbitration and raised questions about sovereignty versus foreign investment.
Djibouti hosts military installations from:
- USA (Camp Lemonnier, the only permanent U.S. base in Africa)
- China (its first overseas military base, opened in 2017)
- France (its largest foreign legion base)
- Japan (its first post-WWII overseas base)
- Italy, Germany, and even Saudi Arabia
This unprecedented concentration of foreign troops makes Djibouti a potential flashpoint in U.S.-China rivalry, especially with rising tensions in the Red Sea and Indian Ocean.
With the Houthi rebellion in Yemen and increasing piracy threats, Djibouti’s role in maritime security has never been more critical. Its ports serve as key logistical hubs for anti-piracy operations and humanitarian aid to war-torn Yemen.
Djibouti faces severe desertification and water shortages, exacerbated by climate change. The government has turned to desalination plants, but long-term sustainability remains uncertain.
The Tigray War (2020–2022) and Ethiopia’s internal strife have disrupted trade through Djibouti, highlighting the nation’s vulnerability to regional conflicts.
As the world shifts toward multipolar competition, Djibouti’s ability to balance between the U.S., China, Europe, and Middle Eastern powers will determine its future. Will it become a pawn in great power rivalry, or can it leverage its position for sustainable development?
One thing is certain: Djibouti’s history proves that even the smallest nations can shape global events when they stand at the crossroads of empires.