Ethiopia’s signing on Monday of a Memorandum of Understanding (MoU) to use the main port of Somalia's breakaway region of Somaliland has sparked a new dispute with its eastern neighbor.
Somalia declared on Tuesday its rejection of the deal and summoned its ambassador from Addis Ababa for consultations.
Landlocked Ethiopia has for years sought access to sea channels to meet its economic ambitions. Currently, it relies on neighboring Djibouti’s port for 95 percent of its marine trade.
Ethiopia has in the past sought to complete agreements with Eritrea, Sudan and Kenya over the use of their seaports. All failed for various reasons, such as war and coups in Sudan.
Mutual interests
The new MoU grants Ethiopia 20-km access to the Red Sea, specifically in the Berbera port, for a 50-year period.
In return, Ethiopia will recognize Somaliland as a republic, announced Muse Bihi Abdi leader of Somaliland, which has not been internationally recognized since it broke away from Somalia in 1991.
Under the MoU, at least 30 percent of Ethiopia’s trade transactions with Djibouti will now be process at Berbera port.
National Security Affairs Advisor to Ethiopian Prime Minister Abiy Ahmed, Redwan Hussein said the MoU will pave the way for his country to carry out marine trade in the region.
It will also grant it access to a leased military base on the Red Sea as part of the agreement, he added.
In other words, Somaliland will achieve security in a turbulent region in return for selling some of its territories to Addis Ababa.
The MoU also stipulates that Somaliland will acquire a stake in the Ethiopian Airlines national carrier.
Expert in Horn of Africa affairs Abdushekur Abdulsamad told Asharq Al-Awsat that the MoU will help Somaliland in modernizing its infrastructure, paving roads and laying railways. It will also benefit from electricity generated by the Grand Ethiopian Renaissance Dam (GERD).
It could gain military support from Ethiopia once the MoU is expanded further, he added.
The agreement “shall pave the way to realize the aspiration of Ethiopia to secure access to the sea and diversify its access to seaport,” PM Abiy’s office posted on X.
“It also strengthens their security, economic and political partnership,” it said.
In a televised speech last October, Abiy declared that his country needed to pursue its right to sea access, raising concerns in the region.
He said Ethiopia “is a nation whose existence was tied to the Red Sea” and that it needed access to a port.
Moreover, he said that “peace” in the region hinged on the “balanced” relations between Ethiopia and its neighbors overlooking the Red Sea, specifically naming Djibouti, Eritrea and Somalia.
Addressing the concerns raised by his statements, he vowed that he will “never pursue his interests through war.”
Partial or full stake?
Even though the MoU did not specify Ethiopia’s exact stake in Berbera port, Abdulsamad said it could be a full stake and the facility could come under Ethiopia’s complete control.
Ethiopian authorities said they will release an official statement with the details of the MoU soon.
In 2018, Ethiopia acquired a 19 percent stake in the Berbera port, according to Dubai-based DP World, which manages the port's operations. The company itself holds a 51 percent stake, while Somaliland has the remaining 30 percent.
Ethiopia was cut off from the coast after Eritrea seceded from the country and declared independence in 1993 following a three-decade war.
Addis Ababa had maintained access to a port in Eritrea until the two countries went to war in 1998-2000, and since then Ethiopia funnels most of its trade through Djibouti.
Somaliland has not gained widespread international recognition, despite declaring autonomy from Somalia in 1991.
Ethiopia, under its former President Meles Zenawi, was the first country to recognize Somaliland’s independence.
It received informal recognition from other countries that set up diplomatic missions there or carried out trade operations.
A European Union delegation had monitored the last elections that were held in Somaliland, congratulating its people, government, electoral commission and political parties for successfully organizing them.
Kenyan and Somaliland officials have exchanged visits over the years. People of Somaliland travel through passports issued in Somaliland.
Somalia stresses that Somaliland is part of its territories. Its state news agency SONNA reported that following mediation from Djibouti, it agreed with Somaliland to resume talks to resolve their disputes.
Strongly worded Somali protest
Somalia summoned its ambassador in Ethiopia in protest against the MoU.
Prime Minister Hamza Abdi Barre convened an emergency cabinet meeting to discuss the MoU, which it described as a “blatant assault on the independence, sovereignty and unity of the Federal Republic of Somalia.” It deemed the agreement null and void.
Barre added that the government was determined to protect Somalia’s sovereignty. “No one can violate a part of Somalia’s territory, whether by sea or air,” he stated.
The government also said it was appealing to the United Nations, African Union, Organization of Islamic Cooperation, Arab League, European Union and regional East African grouping IGAD among others “to stand with the right for Somalia to defend its sovereignty and force Ethiopia to adhere to international laws”.
President Hassan Sheikh Mohamud condemned the MoU, accusing Ethiopia of violating Somalia’s national sovereignty and regional security.
“No one can and no one will be allowed to extract an inch of Somali soil. Somalia belongs to the Somali people,” he declared in a post on the X platform.
The two Horn of Africa neighbors have a history of stormy relations and territorial feuds, fighting two wars in the late 20th century.
Abdulsamad said, however, that the tensions are now “water under the bridge.” Economic interests and policies of openness are now allowing greater rapprochement between these countries.
Eritrea
Eritrean authorities have so far not commented on the MoU, but observers believe that it will not sit well with Asmara, which will not comment on it.
Abdulsamad said Eritrea may have wasted opportunities to strike a lucrative agreement with Ethiopia to allow it access to the Assab port.
Ethiopia will not forget past agreements with Eritrea and Sudan, and it may return to them in the future, because it is working on diversifying its sources of trade operations given its massive population of 120 million people, he explained.
