Category Archives: Djibouti

Berbera ports: The africa most valuable real estate

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Berbera and Zeila, two of the Horn of Africa’s ancient trading cities, have long attracted the interest of global powers because of their strategic location near the Bab el-Mandeb Strait connecting the Gulf of Aden and the Red Sea. This location makes Somaliland’s coastal ports among the region’s most valuable real estate and an alternative to Djibouti as a key player in terms of trade, development, energy, and water security for the Red Sea and Horn of Africa.

Richard Burton, the British explorer, recognized the importance of Berbera port back in 1896, writing:
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In the first place, Berbera is the true key of the Red Sea, the centre of East African traffic, and the only safe place for shipping upon the western Eritrean shore, from Suez to Guardafui. Backed by lands capable of cultivation, and by hills covered with pine and other valuable trees, enjoying a comparatively temperate climate, with a regular although thin monsoon, this harbour has been coveted by many a foreign conqueror. Circumstances have thrown it as it were into our arms, and, if we refuse the chance, another and a rival nation will not be so blind.

A new geopolitical rivalry in the Red Sea

Somaliland’s ports still remain the object of international interest and rivalry today, although the foreign powers involved have changed. On July 1, according to an official statement, Taiwanese Foreign Minister Joseph Wu said Taiwan had agreed to establish ties with Somaliland based on “friendship and a shared commitment to common values of freedom, democracy, justice, and the rule of law.”

Less than a week later, however, Somalia’s federal government, led by President Mohamed Abdullahi Mohamed, aligned itself with China to prevent a Taiwanese-Somaliland nexus that would have clear geopolitical ramifications for the Horn of Africa.

While China and Somalia rebuffed and condemned the new strategic bilateral ties between Somaliland and Taiwan, the U.S. National Security Council has blessed Taiwan’s venture into East Africa, sending a clear message to China that the U.S. stands with Taiwan. This is a significant blow to the Chinese government, which has used its international influence and “development-trap diplomacy” in recent decades to rally support among African and Middle Eastern states for its efforts to suppress Taiwan’s presence in the international sphere.

Egypt, Ethiopia, and Somaliland

On July 12, a high-level delegation from Egypt traveled to Somaliland. Although an Egyptian delegation had visited in 2019, angering Somalia, this year’s trip comes at a critical time as Ethiopia and Egypt have locked horns in their dispute over the Grand Ethiopian Renaissance Dam (GERD). The Egyptian delegation’s visit prompted protests from the Ethiopian government, and Egypt’s growing bilateral ties and cooperation with Somaliland are giving Ethiopia GERD problems of its own — as in gastroesophageal reflux disease.

It is important to note that Ethiopia has a 19 percent stake in the port of Berbera, which is managed by the UAE’s DP World with a 51 percent stake, while Somaliland holds 30 percent. In May 2019, Ethiopia signed its first military cooperation agreement with France, which covers joint air cooperation and includes assistance for Ethiopia’s efforts to build up its naval forces — although where the landlocked country plans to dock these naval forces remains unclear. Joking aside, Ethiopia’s naval endeavors are driven by two main factors: first, concerns over the future of Djibouti’s port, which the IMF categorizes as at a “high risk of debt distress,” comparable to the Sri Lankan port of Hambantota, which was built with Chinese financing and which Beijing took control of after Colombo failed to meet its debt obligations; and second, to protect 11 state-owned commercial vessels managed by the Ethiopian Shipping & Logistics Services Enterprise (ESLSE).

Scramble for fragile Somaliland

Although Somaliland is relatively peaceful compared to Somalia, its lack of international recognition makes it fragile and susceptible to being drawn into regional disputes as it seeks allies, bilateral ties, and eventual recognition. This has been the case with the Gulf states, where it has sided with the UAE and Saudi Arabia. In part as a result of this fragility and desire to secure more allies and improve bilateral ties, Somaliland now finds itself in the middle of multiple disputes among other states, including Ethiopia and Egypt and China and Taiwan.

Taken together, the current domestic instability in Ethiopia and its tensions with Egypt over the GERD, combined with the global superpower competition in the Horn of Africa and Red Sea, are a recipe for conflict that could trigger the largest refugee influx in African history. This could destabilize Somaliland and with it key international maritime trade routes, making it vulnerable to insecurity and terrorism that directly affects both Ethiopia and Djibouti, with which it shares its western border.

To reduce future geopolitical uncertainty and security risk in the Horn of Africa and the Red Sea, it’s in the best interest of the international community to take the following steps:

Consider recognizing Somaliland;

Praise Taiwan-Somaliland relations instead of giving in to Chinese pressure and potentially keeping at bay Russia, which also has a keen interest in establishing a military base at Berbera port; and

Include Somaliland in the Red Sea Council and help it develop its own navy.

Shakir Essa report

Bihi, Farmajo Meeting To Feature In Ethiopia PM’s Talks

Bihi, Farmajo Meeting To Feature In Ethiopia PM’s Talks
14th February 2020
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The expansion of the Somaliland Port of Berbera and the meeting between Somaliland and Somalia leaders will be among the discussions points between Ethiopia Prime Minister Aby Ahmed and the United Arab Emirates leadership this weekend.
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Ethiopia Prime Minister Abiy Ahmed landed in Abu Dhabi on Thursday evening for a round of talks with the hosting government over trade partnerships and efforts to find peace in the horn of Africa.
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Abiy was received at the Presidential Airport by Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Co-operation, and Sheikh Theyab bin Mohamed, Chairman of Abu Dhabi Crown Prince’s Court.

Sheikh Abdullah welcomed Abiy and discussed relations and co-operation between the two countries and ways to tackle issues of mutual interest.

Abiy is accompanied by his wife, Zinash Tayachew, Dr Hirut Kassaw, Minister of Culture and Tourism, Adanech Abebe, Minister of Revenues, and Muferiat Kamil, Ethiopian Minister of Peace.

Ethiopia and the UAE have partnered with Somaliland in the expansion of the port of Berbera which once completed will be the biggest in the region.

UAE’s DP World is expanding the port at a cost of USD 442 Million and is also expected to set up an economic free zone complement the growth of the Port of Berbera as a regional trading hub.

Somalia has been against the expansion of the port claiming Somaliland has no right to enter any international agreements.

Somaliland separated from Somalia in 1991 and declared its own independence. The two countries have been at loggerheads since then.

But early this week, the Ethiopian Prime Minister brokered a meeting between Somaliland president Musa Bihi and Somali president Abdullahi Farmajo in Addis Ababa, talks that lasted for an hour.

Ethiopia and the UAE believe that a lasting solution between Somalia and Somaliland is vital for their interests in the horn of Africa.

This is Abiy’s second trip to UAE in less than one year.

UAE was one of the Gulf nations Abiy visited last year as part of pooling regional support, especially for economic reforms. The Crown Prince also visited Addis Ababa in 2018.

Ethiopia – UAE relations have been on an upward trajectory over the course of 2018.

Over the last decade, the UAE has gradually increased its presence in the Horn of Africa, using development and humanitarian projects to boost its prominence.

It has significantly invested in ports, logistics and trade developments, to secure its port empire across the strategic Bab el-Mandeb Strait by the Red Sea, to profoundly boost its international trade and regional soft power.

The Emirati-owned company DP World’s opening of a port in Djibouti in 2008 signalled a developing presence in the relatively then-untouched Horn of Africa.

Ethiopia has served as a key platform for growing UAE influence, where Abu Dhabi alongside Saudi Arabia helped broker a peace deal with Eritrea, after a two-year state of war between the two states.

It has since continued to shower Ethiopia with aid, also carrying out key development projects. The UAE had also built an oil pipeline between Eritrea and Ethiopia, and Emirati companies have increased investment particularly in Ethiopia.

Such moves are also an attempt to compete with Turkey, Iran and Qatar, whose increasingly positive ties with east African states are met with unease by Abu Dhabi.

A setback for the UAE’s political ambitions in the Horn of Africa, however, are its ties with Somalia who have grown closer to Turkey, a key Emirati rival.

In response, the UAE has focused its support on Somalia’s autonomous regions.

The UAE and Ethiopia last February agreed to cooperate to turn Somaliland into a “major regional trading hub,” which helps the UAE’s ally Ethiopia gain greater trading access, and subsequently boost the UAE’s own trading and economic capabilities.

Furthermore, its alliance with Ethiopia, which also invests in Somaliland’s Berbera port, has helped the UAE gain greater control over it.

The UAE has also attempted to build a military and naval base in Somaliland.