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Baner Club > Blog > Business > Why is Ethiopia’s new Red Sea port agreement making Somalia so furious?
BusinessPoliticsTravel

Why is Ethiopia’s new Red Sea port agreement making Somalia so furious?

Ethiopia’s economy has struggled with no sea access, and an agreement to use a Somaliland port has upset its neighbour.

Last updated: 2024/01/08 at 2:04 PM
Published January 8, 2024
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Anger in Somalia has been aroused by an agreement that sees Somaliland leasing a naval port in the Red Sea to Ethiopia. Self-governing Somaliland is a breakaway state that Somalia claims belongs to its own region in the north. The port agreement agreed to a day earlier, according to Mogadishu, would escalate tensions and jeopardize peace in the larger Horn of Africa; therefore, the government called for “deliberations” on the matter on Tuesday. Reactions to the port arrangement are already quite strong. On Wednesday, Somalis protested against the deal in the streets of Mogadishu.

What’s the deal about?

Signed in Addis Ababa by Ethiopian Prime Minister Abiy Ahmed and Somaliland’s leader Muse Bihi Abdi, the agreement grants Ethiopia a 50-year lease on a naval base with access to Somaliland’s Berbera port for commercial marine operations.

In return, Ethiopia says it will provide an “in-depth assessment” of Somaliland’s quest for official recognition as an independent nation – the first time any other country has offered to do this. Somaliland will also receive a stake in state-owned Ethiopian Airlines, an Ethiopian government statement revealed, although details about this part of the agreement, especially regarding any additional monetary payment, are scant.

In a separate statement posted on X, Abiy’s office called the deal an “historic” one that would allow Addis Ababa to “diversify its access to seaports”. It added that it would also enable both parties to deepen ties across economic and political sectors.

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