Dubai's state-owned DP World said on Thursday the Ethiopian government had taken a 19 percent stake in Somaliland's Port of Berbera. The port operator said it would retain a 51 percent stake in the port and that Somaliland would retain 30 percent.
DP World Group chairman and CEO Sultan Bin Sulayem lauded the strategic partnership, and stressed the role of partnerships between the public and private sectors in accelerating the pace of economic growth of countries.
Bin Sulayem, said: “I am so excited about the prospects of working with the Ethiopian government. Ethiopia is home to approximately 110 million people."
He added, “the economies of the region are growing at a pace that needs the development of Berbera supplementing Djibouti and additional gateways in the future.”
Dr. Saad Al Shire, Minister of Foreign Affairs and International Co-operation of Somaliland said, “this is a very important project that will address some of the problems facing Somaliland concerning employment and investment.
It is a welcome development that will benefit the region as a whole. The economies of the region are growing at a pace that necessitates the development of multiple ports and outlets. The extension of the port will increase capacity of the region to accommodate the increase in trade.”
Ethiopian Transport Minister Ahmed Shide said: “after a year of serious negotiations, Ethiopia has concluded an agreement with the Somaliland Ports Authority and DP World that will give the Government of Ethiopia 19 percent stake in the joint venture developing the Port of Berbera.”
“The agreement will help Ethiopia secure an additional logistical gateway for its ever-increasing import and export trade driven by its growing population and economy. In addition, Ethiopian participation in the development of port of Berbera and the Berbera Corridor will help bring increased economic development and opportunity to the people of Somaliland. Ethiopia will continue to further invest in and develop the Djibouti corridor and further consolidate the use of existing ports in Djibouti. It will also look for other opportunities to develop additional ports and logistics corridors in the region,” Shide added.