At a high-profile CEO networking event hosted by the European Chamber in Ethiopia last month, experts dissected the economic fallout of the Horn of Africa’s escalating port rivalry, centered on the Berbera corridor and the Red Sea crisis. Ethiopia, the sixth largest landlocked country in the world, which relies on Djibouti for around 90% of its port needs, looks to wean off its logistical dependence. A move which has sparked a geopolitical chain reaction and emboldened competing port projects in Djibouti, Somalia, and beyond
Against a backdrop of shifting alliances and logistical bottlenecks, the discussion underscored how Ethiopia’s quest for sea access, via its pact with Somaliland, could redefine trade flows, regional stability, and supply chain costs across East Africa.
The monthly session zeroed in on two decisive trends: Ethiopia’s deep reliance on Djibouti for port access, and its cautious but significant overtures toward alternatives like Berbera in Somaliland.
Moses Chrispus Okello, Senior Researcher at the Institute for Security Studies, characterized the recent developments in the Horn as symptoms of deep political pressures. He suggested that countries in the region have begun exhibiting “transactional state behavior” to navigate the confluence of demographic shifts, economic stress, and climatic disruptions.
Farhan Adem Haibe, General Manager of Alfa Enterprises and former Civil Aviation Minister of Somaliland, discussed the implications of the Ethiopia-Somaliland Memorandum of Understanding (MoU), the evolving dynamics around the Port of Berbera, and the broader geopolitical situation across the Horn of Africa and the Red Sea Corridor.
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