In September, the conflict in the Middle East approached Africa as Iranian-backed Houthi rebels seized Yemen's Perim Island. This island is a narrow point of the Bab-el-Mandeb Strait, connecting the southern entrance of the Red Sea to the Gulf of Aden and is about 20 kilometers from Djibouti.
Economic Impacts of the Crisis
In early October, Yemen's armed forces and their Saudi allies launched a counteroffensive. Since the onset of the Gaza war in 2023, the Houthis have attacked commercial ships. African economies are currently facing fuel and fertilizer shortages due to the crisis in the Strait of Hormuz, and if the Bab-el-Mandeb Strait also becomes impassable, the situation could worsen.
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Shipping companies will have to reroute through the Suez Canal or around the southern tip of Africa, which will transfer additional costs to consumers.
Humanitarian Crisis in Djibouti
The human cost of the escalating conflict in Yemen has quickly reached Djibouti. According to the United Nations High Commissioner for Refugees (UNHCR), as of September 10, at least 3,700 refugees from Yemen have entered Djibouti, most of whom are women, children, and the elderly. UNHCR is preparing to assist another 10,000 people who have not yet reached Djibouti.
Alessandra Roccasalvo, the United Nations Development Programme (UNDP) representative in Djibouti, said, "We don't have much water here; there is no groundwater," adding that everything must be supplied through desalination.
Despite its small size, Djibouti plays an important role as a Muslim country with a population of over one million. Its location at the entrance to the Red Sea has made it an attractive commercial and military hub.
The United States, China, France, Italy, and Japan have military bases in Djibouti. However, the Houthi advances have not yet led to empty docks in Djibouti.
But Roccasalvo warned that "in fact, there is an economic boom here, which means a need for building materials. With rising insurance and reinsurance costs, less income is generated, and many ships no longer want to pass through the Suez Canal or the Red Sea."
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