By promoting market liberalization, the Djiboutian government is encouraging private investors to enter sectors previously held by the state. The goal of this liberalization is to foster competition by making way for private players. However, to ensure the development of healthy and fair competition that benefits everyone, it is necessary to have a "market referee" to ensure compliance with laws and regulations. This arbitration role is fulfilled by the Multisectoral Regulatory Authority of Djibouti (ARMD).
ARMD is an independent administrative authority overseen by a Regulatory Council, vested with the power to impose on operators in the sectors under its charge the obligation to comply with applicable regulations, as well as the power to sanction in case of non-compliance with these rules.
In accordance with Law No. 074/AN/20/8th L establishing the Multisectoral Regulatory Authority of Djibouti (ARMD) and Decree No. 2022-047/PRE issued for the implementation of the aforementioned law, the missions of ARMD are stated as follows:
1. To enforce the laws and regulations governing the regulated sectors with complete objectivity, transparency, and non-discrimination: ARMD has the power to obligate economic operators in the regulated sectors to comply with existing regulations, while also having the authority to propose new regulations aimed at optimizing current laws and rules.
2. To protect the interests of consumers and operators while ensuring the development of effective, healthy, and fair competition: For consumers, it is responsible for ensuring good service quality, fair prices, and respect for consumer rights. For operators, it must ensure a stable market environment, a reasonable return on investment, and fair treatment among competitors.
3. The allocation of authorizations, licenses, and concessions to operators meeting the criteria set by allocation procedures: It must establish the necessary specifications and granting procedures so that operators wishing to invest in the regulated sectors can apply and obtain the green light from the Authority in compliance with the granting criteria.
4. Monitoring and controlling the quality of service of operators: This monitoring aims to supervise and evaluate the performance of services offered by operators to ensure they comply with regulations and adequately meet consumer needs.
5. Controlling operator compliance with the obligations implied by the authorizations, licenses, and concessions granted to them: Once a license is granted to an operator, ARMD is also responsible for exercising continuous surveillance over the beneficiary operator to ensure it complies with the conditions dictated by the obtained license.
6. To ensure the availability and accessibility of regulated services for all consumers, regardless of their income or location: ARMD must ensure that everyone can have regular access to all services offered by operators in the sectors it regulates, without discrimination based on income, location, or any other criterion that could lead to unequal access.
7. The planning and management of the radio frequency spectrum at the national level: Radio frequencies are essential for communication, making the frequency spectrum a scarce resource indispensable for communications, national security, and technological innovations. Spectrum planning involves allocating different frequency bands to various services and users (such as telecommunications operators, television channels, public services, law enforcement, etc.). Spectrum management involves issuing operating licenses to operators for specific frequencies, controlling interference, and monitoring compliance with the conditions imposed by the assigned licenses.
8. The development and promotion of healthy and fair competition across all regulated sectors: Having a "referee" function in the market, ARMD is responsible for implementing the necessary actions and reforms to foster the emergence and development of a market offering a wide choice of services to consumers without infringing on the rights of economic operators established in the regulated sectors.
To carry out its missions, ARMD is authorized to conduct inspections at the service delivery locations of regulated services, impose administrative sanctions in case of violation of laws and regulations, oversee the – cancellation – suspension – modification or revocation of licenses, as well as implement dispute resolution procedures concerning the regulated sectors. It is endowed with the necessary human, financial, and material resources to successfully carry out all missions assigned to it.
Source: ARMD
