Wednesday April 9, 2025
Hargeisa (HOL) — Regional officials from Ethiopia and Somaliland are accelerating efforts to develop a key trade route connecting the Port of Berbera to Addis Ababa, a project expected to transform trade flows and economic integration in the Horn of Africa.
The initiative was the central focus of a forum held Monday in Ethiopia’s capital, where mayors from cities in Ethiopia’s Somali Region and officials from Somaliland gathered to review progress on the East Africa Corridor. The project aims to boost regional trade by improving infrastructure and easing the movement of goods and people between Ethiopia and Somaliland.
Jigjiga Mayor Engineer Shafi Ahmed Maalin emphasized the corridor’s strategic importance for both regions.
“This is a vital route for Ethiopia and Somaliland and for strengthening economic cooperation across the Horn,” said Shafi. “It will help integrate communities and improve access to international markets.”
According to Shafi, about 30 percent of the corridor’s infrastructure work has already been completed. He said the forum focused on identifying challenges and planning for long-term implementation based on studies conducted by Jigjiga University and other institutions.
The Berbera-Addis Ababa corridor project was formalized in 2021 when Dubai-based DP World signed an agreement with Ethiopia’s Ministry of Transport to construct a modern highway connecting the landlocked country to the Somaliland coast. DP World, which manages Berbera Port, pledged to invest up to $1 billion over the next decade to develop logistics and transport infrastructure supporting the route.
The highway will link with Ethiopia’s existing road network and provide an alternative to the Port of Djibouti, which currently handles over 90 percent of Ethiopia’s maritime trade. For more than three decades, Ethiopia has relied heavily on ports in Djibouti and Sudan for imports and exports.
However, with a population exceeding 100 million and rising demand for both imports and exports—especially coffee, Ethiopia’s top cash crop—the government is pursuing new trade corridors and seaport access through regional partnerships.
The Berbera Port, while still developing, is becoming increasingly significant. A World Bank study published in 2022 ranked it 165th globally in port performance and 171st in size among ports in Sub-Saharan Africa. Since taking over operations, DP World has expanded and modernized the port, boosting its capacity and regional standing.
Shafi said local leaders are working to ensure that towns along the corridor benefit from the infrastructure project.
“Our goal is to coordinate benefits across all municipalities along the route and prepare for any future pressures that come with increased trade volume,” he said.
Officials believe the corridor could transform Berbera into a regional logistics hub and offer Ethiopia a competitive and diversified maritime outle—reducing its dependence on a single access point and enhancing economic resilience.