Major Port Investment at Berbera Reported in 2014

On 8 January 2014, Somaliland Sun reported that Somaliland was finalizing a multi-million dollar deal with a leading international operator to develop a port at Berbera, on the Gulf of Aden. The news outlet did not name the operator, and it did not state the value of the investment beyond describing it as multi-million dollar.

Jason McCue, a human rights lawyer serving as an envoy for Somaliland’s independence bid, told Somaliland Sun that after six months of negotiations, an agreement had been put on the table, which he described as highly exciting, from one of the world’s best port operators. Mr McCue declined to comment on the size of the port investment, but he told This is Africa, as reported by Somaliland Sun, that “we are talking hundreds of millions.”

Somaliland Sun reported that Mr McCue was assembling investors to grow Berbera into a $2.5bn logistics hub. The outlet also reported that the government in Hargeisa had plans to develop road networks and an oil pipeline to service the export needs of neighbouring Ethiopia, which it described as Africa’s second most populous nation with 91 million inhabitants and annual exports worth almost $1bn.

Somaliland’s foreign minister Mohamed Bihi Yonis told This is Africa, as reported by Somaliland Sun, that the aim was to develop the corridor between Berbera and Ethiopia, calling it “really the lifeline.” He said Somaliland could provide support to a third of Ethiopia’s population. The foreign minister also claimed that Somaliland would get international recognition soon.

Somaliland Sun reported that the territory unilaterally declared independence in 1991 and is officially seen as an autonomous region rather than a country. It has no access to international financial services, although it has held democratic elections and has its own currency.

The report from 8 January 2014 does not establish what happened after that date. It does not name the international operator, confirm that the deal was signed, or provide a start date for any development at Berbera. The current status of the port investment is not covered by the report, and no subsequent evidence is provided.