Photo from East African

The first phase of a Chinese-built Free Trade Zone - billed as Africa's largest - opened Thursday in Djibouti.

The nearly 50sqkm zone will house manufacturing and warehouse facilities, an export-processing area and a services centre.

It's expected to handle trade worth $7 billion within two years, and create 15,000 jobs when complete.

With a strategic location on the Gulf of Aden, Djibouti already handles most imports for neighbouring Ethiopia, and aims to become a gateway to South Sudan, Somalia and the Great Lakes region.

The zone forms part of China's new chain of infrastructure investments in 60 countries.

China already has a military base in Djibouti, as does the United States.