Ethiopia To Lose $1b In Case It Exits Somaliland’s Berbera Port

Ethiopia stands to lose close to USD 1 Billion should the country move ahead and halt its new development and partnership with Somaliland over the Port of Berbera.
There have been unconfirmed reports in the Ethiopian and Somaliland media that the Horn of Africa nation is considering developing a port in Sudan that will be an optional sea outlet.
While the reports are not conclusive, Ethiopia Minister for Transport  Dagmawit Moges said that owning a port is part of the Ten Years National Logistics Strategy issued a few months ago.
“We are interested to develop ports and it is one of the interventions in the logistics strategy, but it should be determined by the deal with countries,” said Moges.
This basically means Ethiopia still consider Berbera Port strategic to their trade and security partnership with Somaliland.
Ethiopia owns 19 per cent stake in the Port of Berbera which it uses to export Khat, Cement and fruits to Somaliland earning close to a billion dollars annually.
The Ethiopia Transport Minister said meetings with Sudan are still ongoing and agreements will be announced in due time.
While Sudan has agreed to give the plot for the port development, it is understood this was to be used to develop a car waiting area and storage facilitation centre.
Sudan had offered the port plot to Ethiopia eight years ago as a logistics park but the latter never developed.
Mekonnen Abera, Director General of the Ethiopian Maritime Affairs Authority (EMAA), said that finalizing the ownership of the plot in Sudan will be done in the near future.
He said the two countries have already agreed to give the plot for the port development, while the remaining process will be finalized in the coming few months.
“I will write a letter for our embassy in Sudan to finalize the process in the near future and I hope the case will be done soon and the embassy will receive the plot,” he added.
Some sort of consignment is coming via Sudan Port currently and Ethiopia also exports a limited amount of oilseed products through Port Sudan.
Ethiopia is Somaliland’s key ally in the horn of Africa. The two countries have partnered with the DP World and the government of the United Arab Emirates to rebuild the port of Berbera which plays a key role in the maritime connections between the horn and the middle east.
Ethiopia owns 19 per cent shares of the Berbera Port, Somaliland has 30 per cent while DP World enjoys a 51 per cent stake.
The UAE and the Abu Dhabi Fund for Development Construction company are also building a 250-kilometre dual carriageway between the city of Berbera and the Ethiopian border town of Togochale.

Comments

Post a Comment

Popular posts from this blog

Suspension of US aid to Ethiopia is yet another example of Trump’s disregard for Africa

Image
America’s Department of State recently suspended   $130 million worth of aid to Ethiopia because of “a lack of progress” on negotiations pertaining to the construction of the Grand Ethiopian Renaissance Dam on the River Nile. According to state department officials, the decision to cut aid came as a result of a direct “ guidance ” from President Donald Trump. Estimates  show that almost half of Ethiopia’s budget is linked to foreign aid. The country depends on  economic assistance  to support its infrastructure projects, health care and education expansion efforts, and security sector reforms. By suspending some aid, the United States has reopened the debate on whether developing countries should depend on foreign aid to realise their economic goals. The decision to suspend aid to Ethiopia comes after  almost 10 years of regional and international efforts  to mediate the dam dispute between Egypt and Ethiopia. Almost  60% of Ethiopians  do not have access to electricity. The renaissanc
Read more

UAE and Ethiopia discuss more avenues to enhance cooperation

Image
  Mohamed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development (ADFD), received at the Fund’s headquarters Suleiman Dedefo, Ambassador of Ethiopia to the UAE. Senior officials from both sides were present at the meeting. The two sides discussed bilateral relations and means of developing them, especially through the Fund’s support to the Ethiopian government to achieve sustainable development goals by financing development and investment projects. Al Suwaidi emphasised the Fund’s commitment to supporting Ethiopia in its developmental efforts, noting that the visit presented an opportunity to discuss issues of common interest. The meeting was part of the continuous coordination, particularly over the Fund’s support to the Ethiopian government to achieve its economic objectives. Dedefo expressed appreciation for the UAE, as well as ADFD, for supporting his country in its effort to achieve sustainable developmental goals and economic priorities. He pointed out that the
Read more

The 9 Most Beautiful Towns and Cities in Africa

Image
The African continent is not only about impressive animals, stunning deserts and beautiful savannahs. It is also home to astonishing cities and towns that are rich in history and culture. Here are our top picks. Cape Town, South Africa Cape Town is a vibrant and colorful city with stunning beaches, beautiful mountains and some of the best vineyards in Africa. Taking the cable car ride to  the top of Table Mountain  at sunrise or sunset to take in the beautiful views is a must. With all the sophistication and activities that can be found in the city, this seaside playground certainly has enough to offer to everyone. Essaouira, Morocco With an ancient medina and lustrous fortifications that date back to the 18th century, miles of stunning beaches, and a charming harbour and fish market to stroll around,  Essaouira is one the most beautiful towns to visit  on the continent. It guarantees moments of peace and tranquility far away from the mayhem of bigger cities and the charmless all
Read more