Page 34 - Nile Explorer Issue 12

importance?
Somaliland is positioned along the Gulf
of Aden near the entrance to the Bab
al-Mandeb, a major sea-lane through
which almost one-third of the world’s
shipping passesIts location has helped
the government attract new trade and
development deals. For instance, in
late 2016, a Dubai firm announced that
it would invest nearly $450 million to
mange and upgrade the port of Berbera
and develop a corridor running from
there to the Ethiopian border. Ethiopia
is reportedly negotiating a share in the
deal.
The Horn of Africa has also attracted
security-related investments in recent
years. Djibouti has became hub for
foreign military bases; China, France,
Italy, Japan, and the United States all City of Hargesa
have facilities in the country. Somaliland
has followed suit, signing an agreement reach stackers to handle containers and Berbera master plan, which DP World
with the United Arab Emirates in early cargo. In a public document on Berbera has started implementing, while adding
2017 to build a military base at Berbera. port, DP World states that the Berbera new equipment to further improve
Foreign investment in Berbera port: port construction is a breakthrough for efficiencies and productivity of the port.
DP World Ethiopia, as it gives the region’s largest Bashe Omar, who now the Somaliland
Berbera is the main official seaport of landlocked economy access to the sea. envoy to Kenya, and who played a key role
Somaliland, which made it a strategic Another proposed advantage of in the negotiations to bring DP World to
town historically attractive to world investment is that the agreement Somaliland, says, Bashe: “Somaliland is
powers dating from the Ottoman Empire. between DP World and Somaliland slowly gaining international economic
Berbera hosts several key infrastructures improves accountability. Since the 1990s, recognition with the developments at
including Berbera cement factory, a portion of Berbera revenues went the Port of Berbera. From this, the world
directly to the President’s office without
Berbera oil reservoirs and one of the going through responsible authorities. will not have any other option but to
longest airport runways in Africa. It is One development practitioner we grant us political recognition.”
an area with concentrated resources, interviewed argued that DP World’s
which are thus easy to cultivate but also presence would improve this situation: “The port will have access to the
contested. Berbera port remains the DP World’s port investment has maritime highways that connect Europe,
principal source of revenue for the state, challenged the delicate balance Asia, the Middle East and Africa – firmly
accounting for over 70 per cent of state between a range of formal and informal establishing the semi-autonomous State
revenues. stakeholders in Somaliland’s post-war as a gateway to East Africa,” adds Omar.
Berbera has been the centre of a series hybrid governance and may potentially Meanwhile, Kenya has firmed deals
of recent business-related conflicts in improve the country’s economic with Somaliland just hours after Somalia
Somaliland. In 2012, the Somaliland stagnation, which has been rejoiced by severed relations with Nairobi and
government privatized the Berbera many Somalilanders gave diplomats seven days to leave the
cement factory. Local clan elders, On 1 March 2018, Ethiopia became country.
religious leaders, politicians and a major shareholder following an Somaliland’s President Muse Bihi is
businessmen resisted after it emerged agreement with DP World and the visiting Kenya and has held talks with
that the government had given more Somaliland Port Authority. DP World President Uhuru Kenyatta at State House
than a 51 per cent share to Dahabshil holds a 51% stake in the project, Nairobi.
Company, owned by a businessman Somaliland 30% and Ethiopia the
from the clan of the president. remaining 19%. The two leaders sent a joint communiqué
DP World, UAE’s leading global port As part of the agreement, the government to the press on Tuesday evening,
operator, secured a 30-year concession of Ethiopia will invest in infrastructure reaffirming their drive see the new
for the port of Berbera in 2016. In to develop the Berbera Corridor as a envisaged cooperation blossom. They
the agreement, DP World pledges trade gateway for the inland country, stated that Kenya and Somaliland share
investments of US$ 442 million which which is one of the fastest growing fundamental tenets of socio-economic
include the construction of a 400 metre countries in the world. There are also development, which they are committed
quay extension and 250,000 square plans to construct an additional berth to harnessing for the interest of the
metre yard extensions, gantry cranes and at the Port of Berbera, in line with the people.

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