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Africa Economic NewsMacro Economic News

Somalia President Mohamud Nullifies Controversial Ethiopia-Somaliland Port Agreement

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President Hassan Sheikh Mohamud of Somalia has officially nullified the recent agreement between Ethiopia and the breakaway region of Somaliland. The deal, signed on New Year’s Day, aimed to grant Ethiopia access to the Red Sea in exchange for recognizing Somaliland’s independence.

The rejected agreement permitted Ethiopia to lease a strategic 20 km (12 miles) area around the port of Berbera on the Gulf of Aden, providing naval and commercial access to the Red Sea for the next 50 years.

President Mohamud, considering Somaliland an integral part of Somalia, announced the annulment on X (formerly Twitter), stating, “This evening, I signed the law nullifying the illegal MoU between the government of Ethiopia and Somaliland. This law underscores our commitment to safeguard unity, sovereignty, and territorial integrity in accordance with international law.”

Despite the decisive move by Somalia, the specific details of the newly enacted law remain undisclosed, leaving questions about its content and the parliamentary process.

The rejected deal had potential implications for regional diplomacy, with Ethiopia set to become the first country formally recognizing Somaliland’s sovereignty. However, Somalia’s swift rejection underscores the complex geopolitical dynamics at play.

Ethiopian Prime Minister Abiy Ahmed had previously highlighted the crucial importance of Red Sea access to Ethiopia’s existence. In October, Abiy emphasized the need for Horn of Africa countries to find balanced ways to coexist peacefully.

In an attempt to sweeten the deal, Ethiopia’s national security adviser had proposed offering Somaliland an unspecified stake in state-owned Ethiopian Airlines, hoping to compensate for the desired Red Sea access.

The nullification of this agreement heightens existing tensions in the region, raising concerns about potential conflicts in the Horn of Africa. As of now, there has been no immediate response from Somaliland or Ethiopian officials, but the diplomatic fallout is anticipated to impact the geopolitically sensitive area significantly.

Photo (Jerry Owilli )

By; Montel Kamau
Serrari Financial Analyst
8th January, 2024

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