Somalia Considers Port Access for Ethiopia to Resolve Trade Dispute

Somalia is in talks to allow Ethiopia access to an Indian Ocean port to facilitate trade. The framework agreement is expected by June 2025, aiming to resolve disputes particularly involving Somaliland, a self-declared independent region. This agreement follows a recent escalation in tensions over territorial claims and aims to foster collaboration between Somalia and Ethiopia.

Somalia is considering allowing Ethiopia, a landlocked nation, access to a port on the Indian Ocean. This potential decision aims to resolve ongoing tensions between the two countries regarding Ethiopia’s desire for a direct maritime trade route. The two nations are currently engaged in discussions to establish a framework agreement by June 2025, as announced by Ali Mohamed Omar, Somalia’s state minister for foreign affairs.

The planned framework agreement will outline the specifics of the port access, including which port will be offered, its exact location along the Indian Ocean, and the anticipated costs. This initiative follows a meeting between Somali President Hassan Sheikh Mohamud and Ethiopian Prime Minister Abiy Ahmed that aimed to ease hostilities that escalated after a controversial deal involving the self-governing region of Somaliland.

Following Ethiopia’s announcement of a port agreement with Somaliland, which Somalia claims as its territory, tensions heightened in early 2024. The Ethiopian Premier’s plan included providing Somaliland with a stake in Ethiopia’s national airline in exchange for the port access and a military base.

Despite Somaliland’s declaration of independence in 1991, it remains unrecognized internationally. The two leaders, Mohamud and Abiy, reached an agreement in December to settle disputes by the end of February 2025, facilitated by Turkish President Recep Tayyip Erdogan. Additionally, Somalia has announced plans for the construction of a new port in Hobyo with the Turkish firm Metag Holding to commence by year-end.

Ethiopia’s landlocked status since Eritrea’s independence in 1993 continues to impose challenges, making dependency on neighbor ports essential for its economy. As discussions progress and potential agreements materialize, the political and economic landscapes of both nations may significantly change.

Somalia is contemplating granting Ethiopia access to an Indian Ocean port, which may resolve trade route conflicts between the two countries. Ongoing negotiations aim to finalize a framework agreement detailing the port’s specifics by mid-2025. The resolution comes after escalating tensions linked to disputed territorial claims involving Somaliland, as both leaders work towards maintaining peace and facilitating economic cooperation.

Original Source: gcaptain.com