Egypt and Djibouti Forge Energy Alliance Through Solar Project

Egypt has initiated a solar power project in Djibouti, aimed at providing alternative energy sources and reducing reliance on Ethiopia. The project will construct a solar farm in Djibouti and train local technicians for its operation. This agreement highlights emerging bilateral relations and has broader implications for the dynamics of the Horn of Africa, particularly amid ongoing tensions between Egypt and Ethiopia.

Egypt has recently strengthened its diplomatic relations with Djibouti through the launch of a solar power project that will enable the Horn of Africa nation to diversify its energy sources and lessen its dependency on Ethiopia, a country with which Egypt has had longstanding tensions. The initiative entails the establishment of a solar power farm in the arid landscapes of Djibouti, with projections to expand its capacity to 300 kilowatts in the future. Under this agreement, Egypt will finance the construction of the project and provide training for Djiboutian technicians to ensure its operation. The deal was formalized in a virtual signing event between Egypt’s Energy Minister, Mahmoud Essmat, and his Djiboutian counterpart, Yonis Ali Gued, and focused largely on their mutual economic aspirations while sidestepping the broader geopolitical considerations. Hon. Alexis Mohamed, an advisor to President Ismail Omar Guelleh, affirmed that this agreement for a solar plant with a capacity of 276.5 kilowatts represents not only a significant step toward enhanced collaboration between Djibouti and Egypt but also aligns with President Guelleh’s prioritization of energy as a cornerstone for socio-economic advancement in the nation. Although the discussions appeared bilateral, observers noted the potential implications for geopolitics in the Horn of Africa, dominated by historical disputes between Egypt and Ethiopia over Nile water rights and security issues in Somalia. Ethiopia, which holds strong trade connections with Djibouti—where it imports approximately 95% of its goods—currently provides more than 60% of Djibouti’s electricity needs. In light of ongoing regional disputes, including a conflict between Somalia and Ethiopia over a contentious Memorandum of Understanding concerning maritime access, Djibouti recently proposed that Ethiopia establish a new port facility on its territory, an offer that has not received a favorable response from Addis Ababa, which is pursuing other strategic maritime interests. Recently completed infrastructure, including a 283-kilometer power transmission line funded by the African Development Bank, aims to bolster Djibouti’s electricity supply from Ethiopian sources, representing a significant economic commitment from Addis Ababa, which earns an annual revenue of approximately $30 million from energy sales to Djibouti. Djibouti’s growing demand for electricity, driven by increased port activity, necessitates a pivot towards renewable energy investments, particularly in solar and geothermal resources. As of now, approximately 65% of Djibouti’s population enjoys electricity access, with projections indicating an increase to 72% following the new transmission line’s operationalization and further increases anticipated with the advent of the solar facility.

The geopolitical landscape of the Horn of Africa is marked by historical rivalries, particularly between Egypt and Ethiopia, primarily revolving around the control and rights to the Nile River’s waters. Djibouti, strategically situated in this region, has traditionally maintained strong trade relations with Ethiopia, acknowledging its reliance on Ethiopian electricity supply. In light of these dynamics, the recent solar energy partnership between Egypt and Djibouti represents a significant shift that could alter regional energy dependencies and political alliances. Djibouti’s aspiration to enhance its energy independence through renewable sources aligns with broader global trends toward sustainable development and energy self-sufficiency.

In conclusion, Egypt’s solar power project in Djibouti is a strategic maneuver to bolster bilateral relations while reducing Djibouti’s dependence on Ethiopia for energy. The project not only underscores Egypt’s growing influence in the region but also reflects Djibouti’s commitment to sustainable development through renewable energy. As Djibouti enhances its energy infrastructure, the implications for the intricate political landscape in the Horn of Africa could be profound, potentially recalibrating alliances and trade dynamics in this geopolitically sensitive region.

Original Source: www.theeastafrican.co.ke