
Ethiopia has disclosed its interest to have access to sea outlet which is vital for its economic development. According to what the governments statement indicates the country pursues its intent for a sea outlet through peaceful means, bilateral or diplomatic ways and that respect the relevant international laws as well as that adhere to the principles of give and take.
Currently, 49 countries and 5 partially recognized territories in the world are landlocked. Among the landlocked countries, Ethiopia is the most densely populated one with about 120 million people. This means a quarter of the total population living in landlocked countries is Ethiopia’s population.
Ethiopia isolation from the sea has made the country to suffer huge economic loss. The loss it sustained over the years can be estimated at millions of dollars per day which would have helped the growth of its fledgling economy by and large.
Not having a port has a negative impact on the development of a country. For instance, some reports indicate that it took 24 years for port countries to double their economies, and 36 years for landlocked countries. Foreign investment will drop from 33 down to 43 percent due to absence or being far away from ports. Being away from the sea has a negative impact on tourism. It also has its mark in diplomacy. As an area of intense international attention, the Red Sea is an age-old tool of diplomacy. The port has a connection with national security.
A port has a cable to connect with homeland security. In particular, it boosts the ability to repel attacks from the sea. A neighboring port through which landlocked countries import goods can be used for espionage purposes. In the event of war, there is a possibility that the country that has leased the port may interfere with the importation of weapons in favor of opposition country.
Ethiopia is one of the fastest growing economies in the continent. It also has a large population, estimated at around 126 million and projected to grow at about 2.57% a year. This indicates many human basic needs to be met.
Economic development became central to fiscal and economic planning and projections in the period between 2000 and 2012. But lack of direct coastal access became a notable obstacle to Ethiopia’s efforts to achieve middle-income status via export-oriented industrialization.
For many decades Assab port handled 70% of Ethiopia’s trade. But now Ethiopia’s imports and exports mainly pass via the port of Djibouti. Relying on port of Djibouti has proved costly and unsustainable. This is a good factor that can lead Ethiopia to search for alternatives.
In 2017, a concession agreement was signed between DP World, Ethiopia, and the government of Somaliland to rebuild and modernize the port of Berbera. The 30-year concession envisaged a commercial port, a free zone, a corridor from Berbera to Ethiopia’s borders, and an airport in Berbera.
The concession allowed Somaliland’s government to retain 30% of the shares in the port, 19% for Ethiopia, and 51% for DP World. But in June 2022, Somaliland announced that Ethiopia had failed to acquire its 19% share of Berbera port as Ethiopia failed to meet the conditions.
Many Ethiopians, especially those engaged in business and investment realize the seriousness of Ethiopia’s landlocked status. It is hard to imagine that Ethiopia is the only major country in the entire world that is so close to the sea, only about 60 kilometers, yet has no access to it.
Consequently, following the outbreak of the Ethio-Eritrea war on May 1998, Ethiopia was forced to use the Port of Djibouti. It also struggled to look for additional outlets through Sudan, Somalia and Kenya, all at great cost to the nation. Experts in the field quote a wealth of expert data, facts and figures to analyze the detrimental impact of the loss of access to the sea on the economic, political, diplomatic and security well-being of the country.
Peaceful and mutually beneficial agreements with any of the neighboring countries will have positive outcomes for all. Ethiopia would still emerge stronger, and would continue on its economic growth path.
BY SOLOMON GIRMAY
THE ETHIOPIAN HERALD SUNDAY EDITION 22 OCTOBER 2023
Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald