Q: What is your response to speculations which drive commodity prices high?

A: The problem of inflation did not surprise us because we are among the countries that import everything; consequently, we are vulnerable. We have lived like this due to the scarcity of water and arable land because ours is an arid and desert climate. We are traditionally people who practice animal husbandry.

We have now asked certain friendly countries which, contrary to us, have arable lands to allow us to cultivate our own farmlands in their country. We are glad to have been able to anticipate the crises. Our first harvest from Dadaref, Sudan, will arrive in a few days.

At home, we have invited palmers, and established a laboratory which will produce the first 20,000 plants within one or two months. We have invested a lot in the research of the water suitability and bought hydraulic equipment. We will also put greenhouses in the districts and show our people that it is possible to grow vegetables in our climate. I want to mention here that there is someone who has cultivated rice in a greenhouse in Ambouli [at the outskirts of Djibouti town]. Even if it is not enough for marketing, he has shown that it is possible.
 

With the inflation, what we have to do is not to increase prices and add a burden to our population; and it is about identifying vulnerable persons and helping them. We must know that we are in a difficult period.

Q: The Council of Ministers decided to lift tax; this represents a loss of 500 million Djibouti Francs (DF), (A dollar is exchanged at 178 Djibouti Franc). Where will the revenue come from to fill the loss?   

A: We will manage; but we must also know that we cannot allow ourselves to tax basic commodities that are necessities in the life of the people. It was the least we could do.

Q: Do you think that there are no solutions to the Somali problem?

A: I don’t think so. The Somali problem, which is being handled by the Secretary-General of the United Nations, is at a good stage in the resolution process. The most difficult part, which is the list of the delegates from the two parties, has gone well: Seven delegates are required from each party. The opposition has sent us its lists of 11 delegates and the Transitional National Government (TNG) will do it soon. I have had discussions with the Somali Prime Minister who is not very worried, we will find a solution through dialogue.

Q: We have heard that several of the belligerent groups wanted to prevent the participation of the concerned parties?

A: It is expected. The first obstacle is how to overcome the mutual disdain the delegates may have of one another. It will be very difficult but I am still optimistic.

Q: What does our turbulent neighbour [in the north want]? Is Djibouti at war with Eritrea?

A: No. The question you ask is pertinent, but I cannot speak on behalf Eritrea. This problem [with Eritrea] constitutes a flagrant violation of our territorial integrity, and our border. We have discussed the issue with the President of Eritrea who appeared to have no knowledge of his army being found in our territory. We are in a very complicated situation as the two armies have encountered each other. The fact is there and we have requested the arbitration of the regional and international courts.

The Arab League and the African Union have each sent out their communiqués. The Arab League will dispatch, in few days, a delegation to Djibouti to see what was going on and how everything is now.

Q: Mr. President, do you know the basis of Eritrea’s claims?

A: No, if they have claims, there are legal ways of doing it. But they have come and settled in our country and say that they are in their own country. That is what has happened.

Q: Then what do you say, Mr. President?

A: I say that they are not in their country.

Q: What will you do if they do not accept the mediation of the Arab League or the AU? What do you say to Djiboutians?
 

A: In this case, we will be obliged to defend our country and our national sovereignty.

Q: You have recently given an interview to the weekly, Jeune Afrique, which appeared in the magazine headlined, “Djibouti Doesn’t Need France”.

A: The journalist recorded only half of what I said, which was: “If France doesn’t need Djibouti, we don’t need France.” That the journalist chose only to highlight half of the sentence is his problem. But there is the question of sovereignty; as long as it is a sovereign state, our country can get into agreement with whomever it wants to. I have to say that if there is no reciprocal interest between two states; if there is no political interest to stay together, the one which wants to be free can do so when it wants to. 

Q: During both of your terms in office, there have been many reforms. Will this continue? And which are the big reforms to come?

A: We have engaged in many reforms, among which there have been reforms to the pension fund. A small country like ours could not have two funds: the social security fund and the pension fund. We have reformed the social security fund as a whole and created only one fund. The project of integrating the two funds has the objectives of consolidating and offering long-term retirement security to our compatriots. If there are surpluses, pensions will be reviewed in line with inflation. Already, it is at a minimum of 170,000 DF per year. The labour law dates back to 1952 and does not meet the current challenges in the market.

Q: What are your projections for the future? What are the key sectors that support the economic growth dynamism and what role do you see the Arab countries playing in this dynamism?

A: Growth is definitely there, but it has been hampered by the increase in the prices of oil and the inflation which is a result of the price increase. The growth could have been more significant in our country if it was not for high price of oil. We have worked towards creating jobs, and after many years 6,000 new jobs have been created. The project that we all are passionate about is the one at Lake Assal, which will cost us 75 million dollars. It is important for me because it is a national resource that will last long, create employment and generate income. Work has begun at the new railway for the export of industrial raw salt. We will export up to six millions tonnes annually. Although we will export 1.5 million tonnes during the first year, the plan is to meet our target in three years.
 

Besides, we will develop a certain number of industries based on salt; first will be the refining of the salt and then there will be development of detergent and other products derived from salt. It is the first project which will employ several people. There is also the terminal of Doraleh, which will generate other activities such as the storage of chemical products; and industries will be planted in the Free Zone, including a cement factory. There will also be a petroleum refinery.
 

We will also think of combining several potentials that we have for development; we have invested in developing a geothermal project; we are counting on exploiting the resource at the end of 2011. There will also be the exploitation of oil energy in the Goubet area, as well as the development of solar energy. Today, it is possible to support our infrastructure with solar power, and we have a potential of 60,000 times more than our current need.
 

The interconnection with Ethiopia is progressing. It will be put in place in 2011. This will require us to prepare our human capital and we will work on it.
 

Q: Do you see energy as the main obstacle to the creation of industries?

A: Absolutely. Our project to utilize geothermal energy is of a national interest. We are asked to be patient until 2012; without lower energy cost, it is not possible to put in place industrial plants. Many companies which were in the Free Zone have left because of this problem. We are determined to solve this problem once and for all.

Q: How are you going to deal with systematic boycott of elections by the opposition groups?

In a healthy democracy, it is necessary to be responsible and transparent, and respond to the acts of the opposition in good faith without derailing the functions of the state. This of course presents another challenge to the government, in creating credible and capable governance for the future.

There are many countries which are lucky to have such a system and others do not. Our opposition does not want to play their role and they assume that by deserting the playing field, the government and the state would be labelled as an anti-democratic regime. They would be happy if that was the case.