A Historic Leap: Ethiopia and Somaliland Forge a Path for Regional Collaboration
The early 2024 Memorandum of Understanding (MoU) between Ethiopia and Somaliland marks a historic shift in the Horn of Africa’s geopolitical dynamics.
Ethiopian Prime Minister Abiy Ahmed and Somaliland’s President Muse Bihi Abdi have paved the way for significant economic and strategic cooperation. This MoU symbolizes not just a bilateral agreement but a model for regional collaboration.
Situated in the Horn of Africa, Somaliland declared its independence from Somalia in 1991, in the same year when Eritrea separated from Ethiopia. This move followed the collapse of Somalia’s central government.
Formerly a British protectorate until 1960, it then united with Italian Somaliland to establish the Somali Republic. Unlike Eritrea, which achieved recognised independence with Ethiopia’s central government support, Somaliland’s self-proclaimed sovereignty has not gained international recognition, leading to economic and diplomatic hurdles. Nonetheless, Somaliland has formed its own elected government, currency, and infrastructure, effectively operating de facto as an independent nation.
Under the agreement, Ethiopia has secured a 20-square-kilometer area of maritime space leased from Somaliland. This lease, valid for 50 years, grants Ethiopia access to naval and commercial activities in the Red Sea, a crucial development given Ethiopia’s landlocked status. This access is particularly strategic given the location of the Berbera Port on the Gulf of Aden, a vital gateway to the Red Sea and the Suez Canal.
Abiy Ahmed (PhD), the Prime Minister of Ethiopia, stressed the Memorandum of Understanding’s critical role, stating that it represents a repairing of one of the country’s historical damages. His perspective reflects on Ethiopia’s previous loss of maritime access, attributing it to historical errors, inadequate advocacy for the nation’s interests and external interference. This agreement is seen as a strategic move to reclaim and secure Ethiopia’s maritime access, addressing past lapses and ensuring the country’s future economic and strategic positioning.
Redwan Hussein, the Prime Minister’s National Security Advisor, on his part, highlighted Ethiopia’s intentions, emphasising the desire to access maritime routes. He mentioned that the agreement with Somaliland paves the way for Ethiopia to utilise maritime resources in a mutually beneficial manner, fostering economic and political partnerships. Ethiopia’s goal is not just to secure additional ports for its own growth but to participate in shared regional development, dispelling any notions of territorial ambitions over coastal nations.
This stance aligns with Ethiopia’s broader foreign policy, which seeks to enhance peace and security through cooperation and shared benefits with neighbouring countries. The MoU permits Ethiopia to establish commercial and military maritime bases in Somaliland, indicating a significant step towards regional collaboration and mutual economic growth.
By leveraging shared resources, this agreement offers opportunities for mutual development and is seen as a model for overcoming common challenges through collaboration. The MoU also represents an opportunity to manage resources across borders for mutual benefit. The operational details of the MoU will conclude within a month after its finalization.
Ethiopia, needing alternative ports, has initiated similar discussions with other countries, including Eritrea, but these have not yet been finalised. Ambassador Hussein further emphasized that such discussions are ongoing, reflecting a commitment of his country to shared benefit and cooperation. Some have misinterpreted the aspiration to secure maritime access as an attempt to seize the sovereignty of coastal countries forcefully. However, this agreement between Ethiopia and Somaliland is a historical affirmation of mutual respect.
The Berbera Port, operated by DP World, a Dubai-based company, provides Ethiopia with an alternative and potentially more efficient route for its import and export activities. This access is expected to reduce congestion at other ports Ethiopia uses and improve its overall trade efficiency.
Furthermore, the MoU covers the development of infrastructure, including new ports and the improvement of existing ones, as well as the enhancement of transportation networks like roads and railways. This will facilitate smoother trade flows and strengthen economic integration between the two nations.
The agreement is expected to catalyse economic growth and investment in Somaliland, leading to job creation and economic development. Additionally, it has significant potential to enhance Ethiopia’s role in maintaining regional peace and security.
The coinciding of Ethiopia’s MoU with Somaliland and its accession to full membership in the BRICS bloc from January 2024 represents significant strides for the nation and the region.
Ethiopia’s BRICS membership opens doors to new markets, investments, and financial resources from these emerging economies. This complements the MoU with Somaliland, enabling Ethiopia to expand its trade routes and maritime access, thus diversifying its economic partnerships.
These developments collectively boost Ethiopia’s role as a regional power. Access to BRICS’ resources and networks, along with increased maritime capabilities through the MoU, positions Ethiopia as a key player in regional stability and economic development.
Ethiopia’s stronger ties with BRICS nations and enhanced port access could benefit neighbouring countries by facilitating broader market access and fostering regional trade networks.
The combination of BRICS membership and the MoU could attract more foreign investment into the region, driving infrastructure development, technology transfer, and economic growth.
The MoU could reshape the regional economic landscape, highlighting the Horn of Africa’s potential for future partnerships and international collaborations.
By fostering economic empowerment and interdependence, the MoU contributes to peace and stability in the region. Its impact goes beyond bilateral relations, positioning the Horn of Africa as a strategic player on the global stage and laying the foundation for broader regional and continental, as well as international cooperations.
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Let’s come together to foster a stronger, more united prosperous Horn of Africa brotherly nations!
