Djibouti (nation), republic in the Horn of Africa, formerly French Territory of the Afars and the Issas. Also called Jibuti, it is bounded on the east by the Gulf of Aden; on the south-east by Somalia; on the south and west by Ethiopia; and on the north by Eritrea. It is strategically located on the Bab el Mandeb, the strait that links the Red Sea with the Gulf of Aden. Little more than an enclave, it has an area of about 22,000 sq km (8,495 sq mi). The capital is also called Djibouti.