In brief
- On 12 December 2013, Somaliland Sun reported that Somaliland was finalising a multi-million dollar port investment at Berbera.
- The report did not identify the port operator, contract value, or whether the agreement had been signed.
- The story also noted a $2.5bn logistics hub ambition for Berbera and related infrastructure plans for the Berbera-Ethiopia corridor.
On 12 December 2013, Somaliland Sun reported that Somaliland was finalising a major port investment at Berbera, on the Gulf of Aden, intended to boost the territory's role as a trade hub between Africa and the Arab world. The report said the government was close to a multi-million dollar deal with an unnamed "leading international operator" to develop the port.
The article quoted Jason McCue, a human rights lawyer and envoy for Somaliland's independence bid, who said that after six months of negotiations an agreement had been put on the table from "one of the world's best port operators". McCue, who was assembling investors to grow Berbera into a $2.5bn logistics hub, said the port investment would constitute the single biggest inflow of foreign direct investment in Somaliland's 22-year history of de facto autonomy. He declined to comment on the size of the port investment.
The report did not name the port operator, contractor, consultant, or client, and it did not state whether the agreement had been signed. No contract value or total project cost was given; the $2.5bn figure referred to the wider logistics hub ambition, not the port investment itself.
Somaliland Sun also reported that Kuwait had recently spent $10m reinvigorating Somaliland's two airports, and that the government in Hargeisa had plans to develop road networks and an oil pipeline to service exports from neighbouring Ethiopia. The report said Somaliland hoped the port could compete with Djibouti, Mombasa and Dar es Salaam, where ships could wait weeks to unload due to bottlenecks. It cited Ethiopia's 91 million inhabitants and annual exports worth almost $1bn, led by coffee and gold.
Somaliland's foreign minister Mohamed Bihi Yonis was quoted saying the government wanted to develop the Berbera-Ethiopia corridor as "really the lifeline", and that Somaliland believed it could provide support to a third of Ethiopia's population.
The article noted that Somaliland unilaterally declared independence in 1991, is officially seen as an autonomous region of Somalia, and lacks access to international financial services. It also reported that oil companies such as Genel Energy were exploring Somaliland's potentially huge reserves, while Somalia contested oil licenses awarded by Hargeisa, and a draft petroleum bill said the central government alone had the "privilege to distribute natural resources". Sources close to Somalia-Somaliland talks said a new government in Mogadishu showed little indication of changing its stance on recognising Somaliland.
The 2013 report did not establish what has happened since. It did not say whether the port agreement was signed, whether construction began, or whether the Berbera port became competitive with regional rivals. The current status of the port and the logistics hub ambition remains unattributed in the public record cited here.
Frequently asked questions
Which port was targeted for investment in Somaliland?
The port at Berbera, on the Gulf of Aden, was the focus of the investment reported by Somaliland Sun on 12 December 2013.
Who were the investors and what was the financial commitment?
The report said Somaliland was finalising a multi-million dollar deal with an unnamed leading international operator, but the operator and contract value were not disclosed.
What was the timeline for the investment and construction?
The 2013 report did not provide a timeline for signing, construction, or completion of the Berbera port investment.