Ethiopia and Somalia Agree to End Port Dispute for Renewed Cooperation

Ethiopia and Somalia are on a path for renewed cooperation after the two sides agreed to end the Somaliland port dispute. Last week, Ethiopian Prime Minister Abiy Ahmed toured Mogadishu and held talks with Somalian President Hassan Sheikh Mohamud. Top on the agenda of the meeting was Horn of Africa security as well as the start of technical negotiations for Ethiopia’s port access, as agreed on in Ankara last December.

With Turkey acting as the mediator, Ethiopia and Somalia agreed to reach a “mutually beneficial commercial arrangement, which ensured Ethiopia gains access to the sea under Somalia’s sovereignty. In an interview with local media last week, Somali foreign affairs minister Ali Mohammed Omar said that talks are ongoing, and he suggested that the aim is to reach a framework agreement by June.

“That framework will determine which type of port to offer, the exact area in the Indian Ocean and the overall cost of it,” said the minister.

This is remarkable progress in finding a long-term solution to Ethiopia’s ambitions for port access. Under the previous deal, Addis Ababa was planning to lease a 12-mile section of Berbera’s coastline in the self-governing breakaway region of Somaliland, without Mogadishu’s permission. Unfortunately, the decision stoked tension in the already-restive Horn of Africa region.

Ethiopia’s Port Access Ambitions

Ethiopia became landlocked in 1993 after Eritrea gained independence, marking the end of a three-decade war between the two countries. Currently, Ethiopia utilizes Djibouti’s ports, through a network of roads and the 752-kilometer Addis Ababa-Djibouti Railway.

However, as one of the largest economies in Sub-Saharan Africa, Ethiopia is pushing to build its own port on the Indian Ocean. The port could also serve as a base for the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), one of the largest African ocean carriers.

Currently, ESLSE has a fleet of ten bulk carriers but has announced plans to add an extra six, as Ethiopia’s import and export needs grow. According to a 2023/2024 performance report, ESLSE handles around 45 percent of Ethiopia’s dry cargo imported through Djiboutian ports.