Somaliland President Pursues Trade Agreement with Ethiopia and International Recognition at World Government Summit

Mekelle/Tel Aviv/Nairobi/Pretoria/London

Somaliland President Pursues Trade Agreement with Ethiopia and International Recognition at World Government Summit

Somaliland President Abdirahman Mohamed Abdillahi (Abdirahman Irro) delivered a high-profile address at the World Government Summit in Dubai, reaffirming his administration’s commitment to deepening regional cooperation and advancing Somaliland’s longstanding quest for international recognition.

Speaking alongside Sultan Ahmed bin Sulayem, Chairman of global logistics conglomerate DP World, President Abdirahman emphasized his government’s intention to finalize a trade and transit agreement with Ethiopia before the end of the year. He described Ethiopia as a “friendly neighbour” and underscored the proposed pact’s potential to strengthen bilateral economic ties and enhance cross-border commerce.

Chairman bin Sulayem, whose company operates the strategic Port of Berbera, highlighted Africa’s growing role in global trade and identified Berbera—one of the oldest ports on the Red Sea—as a “prime strategic and operational business opportunity” for international logistics and commerce.

The panel discussion also addressed Somaliland’s ongoing campaign for international recognition. President Abdirahman cited Somaliland’s historic independence on June 26, 1960, and its subsequent but short-lived union with Somalia as the foundation of the region’s claim to sovereignty. He noted that recent political signals from U.S. President Donald Trump and his allies suggested a potential shift in Washington’s approach to Somaliland’s status.

President Abdirahman’s visit to the United Arab Emirates, his second in two weeks, reflects Hargeisa’s intensified diplomatic outreach. Analysts view the trip as a calculated effort to court international partners, secure economic agreements, and position Berbera as a key logistics hub connecting the Horn of Africa to global markets.

Somaliland President Abdirahman Mohamed Abdillahi (Abdirahman Irro) delivered a high-profile address at the World Government Summit in Dubai

Ethiopia–Somaliland MOU Fallout

The President’s renewed engagement with Ethiopia follows a period of heightened diplomatic tension. On January 1, 2024, Ethiopia and Somaliland signed a controversial Memorandum of Understanding (MOU) for “partnership and cooperation,” which reportedly included provisions granting Ethiopia access to a leased military base on the Red Sea. The deal was widely regarded as a potential breakthrough for Ethiopia’s landlocked economy and a strategic gain for Somaliland.

January 1, 2024, Ethiopia and Somaliland signed a Memorandum of Understanding (MOU)

The agreement, however, provoked immediate opposition from Somalia, which maintains that Somaliland remains an integral part of its sovereign territory. Facing regional pressure, back-channel negotiations, and internal political considerations, Ethiopia subsequently withdrew from the MOU. Analysts interpret this reversal as a diplomatic victory for Mogadishu, which leveraged regional alliances and international support to challenge the deal.

Despite the setback, President Abdirahman has expressed a willingness to reset ties with Ethiopia, signalling that trade, infrastructure, and economic cooperation remain central to Somaliland’s strategic agenda.

Berbera Port

President Abdirahman’s participation at the World Government Summit underscores Somaliland’s determination to strengthen economic partnerships and enhance its diplomatic profile, even as formal recognition of its sovereignty remains elusive.

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