The Republic of Djibouti, occupying an area of 23,180 km2, falls within the arid zone of East Africa and is located above the ‘Horn of Africa’, adjacent to the Red Sea. This country has several thermal springs and fumaroles distributed over three regions – Lake Assal, Lake Hanle and Lake Abhe. The most characteristic feature of Lake Abhe is the presence of several linear chains of travertine chimneys. The thermal waters are typical of the Na-Cl type near neutral waters rich in CO2. These waters show an oxygen shift, indicating reservoir temperatures>200°C. The chemical signature of the thermal springs and the geology of the Lake Abhe region are very similar to the Tendaho geothermal area of Ethiopia. The geology, temperature gradient and its proximity to Damah Ale volcano make the Lake Abhe region a potential site for geothermal power development.