Background context for Berbera Times readers, updated periodically as developments occur.
What was signed
On January 1, 2024, then-Somaliland President Muse Bihi Abdi and Ethiopian Prime Minister Abiy Ahmed signed a Memorandum of Understanding in Addis Ababa. Under the preliminary terms described by both sides, Ethiopia would lease roughly 20 kilometers of Somaliland coastline for 50 years, intended for a naval base, in exchange for Ethiopia becoming the first country to formally recognize Somaliland’s independence. The full legal text of the MoU was never made public, and Somaliland officials later clarified that its commercial terms were separate from an earlier, longer-running commercial arrangement giving Ethiopia a minority stake in the Berbera Port project itself.
Why it happened
Landlocked Ethiopia, with a population exceeding 130 million, relies heavily on Djibouti for maritime trade, reportedly paying more than $1.5 billion a year in port and transit fees. Ethiopian officials have described direct sea access as an existential economic priority. Somaliland’s Berbera Port, developed and expanded by DP World since 2016, offered an alternative route Addis Ababa had already been exploring commercially.
The fallout
Somalia’s federal government condemned the MoU as a violation of its sovereignty and territorial integrity, recalling its ambassador from Ethiopia and rejecting the deal outright. The dispute drew in regional and international mediators. Turkey brokered talks between Addis Ababa and Mogadishu that produced the December 2024 Ankara Declaration, under which Ethiopia and Somalia agreed to pursue technical discussions on sea access while Ethiopia affirmed respect for Somalia’s territorial integrity.
Current status
The formal recognition-for-access MoU has not been implemented as originally described, and its practical status remains ambiguous. Separately, Ethiopia’s commercial relationship with Berbera has continued to deepen: Ethiopia holds a stake in the DP World-led Berbera Port venture, and trade volumes along the Berbera Corridor connecting the port to Addis Ababa have grown substantially, driven by investment from DP World and international development partners.
What to watch
Whether Ethiopia’s economic reliance on Berbera eventually revives momentum toward the recognition question the original MoU raised, or whether the relationship continues on a purely commercial track, remains an open question.