Africa’s most strategic foreign military hub hosting US, Chinese and Japanese bases, secures an $85 million annual deal with France

Djibouti has reclaimed 40% of the facilities at France’s naval installation on Heron Island, a significant development for a country that hosts military bases belonging to some of the world’s most powerful nations, including the United States, China and Japan.

The tiny East African nation also hosts military bases belonging to Germany, Spain, Italy, the United Kingdom, and Saudi Arabia at a very little distance from one another. Russia and India too have strong interests in setting up military bases there.

The renewed agreement also raises France’s annual payment for its military presence from €30 million to €85 million.

According to Djibouti’s national news agency, Agence Djiboutienne d’Information (ADI), the handover was completed on November 2, 2026. Acting Defence Minister Omar Abdi Said received the keys to the returned facilities from French ambassador Jérôme Bresson during a ceremony attended by officials from both countries.

The transfer follows a renewed defence cooperation agreement signed in July 2024, which requires France to return 40% of the total area of its installation on Heron Island.

Djibouti’s importance to global powers stems from its position near the Bab el-Mandeb Strait, a major maritime chokepoint connecting the Red Sea to the Gulf of Aden and the Indian Ocean.

The United States operates Camp Lemonnier, its principal permanent military installation in Africa, which supports counterterrorism missions and operations across the Horn of Africa and the Middle East.

China established its first overseas military base in Djibouti in 2017, giving its navy a logistics and support facility close to vital international shipping routes.

Japan also maintains an overseas military base in the country, supporting anti-piracy operations and the protection of commercial vessels passing through the Gulf of Aden. Italy operates a military support base as well.

France, meanwhile, retains its largest permanent military base abroad in Djibouti, with approximately 1,450 troops stationed there.

The agreement does not signal a French military withdrawal. France will retain its military presence in Djibouti, where approximately 1,450 troops are stationed, making the country home to France’s largest military base abroad.

The French Senate said the returned section consists mainly of residential facilities, meaning the handover is not expected to have a major impact on France’s military operations. The area will have a separate access point from the remaining French naval installation.

The increase reflects Djibouti’s efforts to renegotiate the terms of hosting foreign military forces, as competition for access to its territory has intensified.

For Djibouti, the latest handover represents both the recovery of valuable coastal property and a change in the terms of a long-standing military partnership. France, meanwhile, retains access to a strategically important base at a time when it has lost military footholds in several other African countries.