Djibouti is a small country in East Africa that borders on the Red Sea, Eritrea, Ethiopia and Somalia. The French came into the area in 1862, having acquired the right to settle there from the Afar Sultans of Obock in exchange for money and other goods. Not to be outdone, the Sultan of Tadoura made a similar agreement with the French in 1884. The construction of the town and port of Djibouti began in 1888. According to the terms of a treaty signed between France and Ethiopia in 1897, Djibouti was to be "the official outlet for Ethiopian commerce" and, in consequence of this, a railway was later built. Djibouti was the last African country to gain its independence and it is still an important French base in the region. The capital, Djibouti City is located in the south of the country close to the Somali border. It is an important harbor town and this is where the train going to Ethiopia leaves from. Tadjoura is on the other side of the Gulf of Tadjoura and is a good place to go diving. Most of the land in the country is very dry and rocky. There are some spectacular rock formation, volcanoes and lakes, like Lugu Lake and Lugu Lake, inland but it requires some real traveling to get to them.