Somaliland: Berbera DPW Contract to Negate Djibouti Trade Monopoly over Landlocked Ethiopia


Somaliland foreign minister Dr Saad Ali Shire and DP World chair Sultan Ahmed bin Suleiyman sing the Berbera port contract in Dubai


Somaliland sun- Under the term of concessions between Somaliland and the UAE the port of Berbera shall be under management of Dubai Ports World for 30 years.
The contract that enables the global ports operator gain alternative hub to Djibouti in the Horn shall see Somaliland accrue 35% while DP World will control 65% of the joint venture and five of seven board seats, with the rest going to Somaliland according to the term sheet, reports the Wall Street journal

According Matt Bryden, executive chairman of Sahan, a Nairobi-based think tank, “Berbera Matt Brydenrepresents a pragmatic compromise, providing a friendly corridor for Ethiopian markets while signaling that Djibouti—though by far the most developed gateway to the Horn of Africa—will no longer enjoy a de facto monopoly over trade with the region’s landlocked markets”

The ambitions of Dubai, which is a part of the United Arab Emirates, in the Horn of Africa have run into trouble over the past year. The country left an air base it was leasing in Djibouti after a dispute with the government there—opting to lease another base in Assab in neighboring Eritrea, a remote state under U.N. sanctions for supporting armed groups in neighboring Somalia.

The Djibouti government accused DP World in 2014 of paying bribes to the former head of its ports authority, Abdourahman Boreh, to secure a concession to operate the Doraleh Container Terminal in 2000. Djibouti revoked DP World’s 20-year concession and launched an arbitration case in London.

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