Djibouti is the capital and largest city in the Republic of Djibouti. With an estimated population of 400,000, Djibouti is located on a peninsula that divides the Gulf of Aden and the Gulf of Tadjoura.
After independence From France in 1977, Djibouti was left with a government which enjoyed a balance between the two main ethnic groups, the Issa of Somali origin and the Afar of Ethiopian origin.
The city has multiple connections to the Ethiopian capital Addis Ababa and serves as a main hub for imports and exports to many of their landlocked neighbouring countries. This earns Djibouti a solid income From transit taxes and harbor fees. The management of the countryâ€™s main airport, the Djibouti International Airport has been granted to a private company and is an indication of the privatization process underway in the country.