Access to the sea holds immense importance for landlocked countries, and Ethiopia is no exception. Situated in the Horn of Africa, Ethiopia, the second-most populous country on the continent next to Nigeria has long faced the challenges of being landlocked. This article explores the multifaceted significance of sea access for Ethiopia, especially in the economic arena, drawing upon reliable sources and documents to provide a comprehensive analysis.
According to the African Development Bank, access to the sea is vital for Ethiopia’s trade and economic development. Being landlocked, limits Ethiopia’s ability to engage in international trade, significantly affecting its economic growth and potential.
Developing countries’ access to the ocean and shorelines allow them to develop and attract foreign direct investments and direct industry production within the state. Additionally, 80% of tourism happens in coastal areas.
A World Bank report highlights that proximity to ports and maritime infrastructure can significantly reduce transportation costs and facilitate the movement of goods. Access to the sea would provide Ethiopia with new trade routes, enabling it to diversify its export markets and import essential goods efficiently.
The United Nations Economic Commission for Africa (ECA) emphasizes that access to the sea is crucial for Ethiopia’s integration into regional and global markets. It enables the country to participate in regional trade agreements, foster economic cooperation, and strengthen regional integration efforts such as the African Continental Free Trade Area (AfCFTA).
The African Union’s Agenda 2063 underscores the importance of enhancing connectivity between African countries. Access to the sea would enable Ethiopia to connect with neighboring coastal countries, fostering cross-border cooperation, and promoting regional stability and development. Ethiopia’s access to the sea would enhance its energy security. The country has significant hydropower potential, and access to coastal areas would facilitate the import and export of energy resources, attracting foreign investment and bolstering the development of renewable energy projects. According to the United Nations Economic Commission for Africa, “Marine Resources for Africa’s Development”, Ethiopia’s potential access to offshore resources in the Red Sea and the Gulf of Aden could unlock new opportunities for resource exploration and extraction, contributing to the country’s economic growth and energy diversification.
The significance of access to the sea for Ethiopia cannot be overstated. It holds the key to unlocking economic growth, trade diversification, regional integration, and energy security. Reliable sources and documents from organizations such as the African Development Bank, World Bank, United Nations, and the African Union provide a comprehensive understanding of how sea access can transform Ethiopia’s socio-economic landscape, paving the way for a prosperous and interconnected future Ethiopia primarily earns foreign currency through various sources to import commodities.
Ethiopia exports a range of products, including coffee, oilseeds, flowers, textiles, and livestock. Revenue generated from these exports contributes to the country’s foreign currency earnings.
Remittances from Ethiopians living abroad play a significant role in the country’s foreign currency reserves. These funds are sent by Ethiopian Diaspora communities to their families and contribute to the foreign exchange reserves.
Foreign companies investing in Ethiopia bring in foreign currency as part of their investment. These inflows are utilized to develop industries, infrastructure, and other sectors, contributing to the country’s foreign currency reserves.
Ethiopia is known for its rich cultural heritage, historical sites, and natural attractions. Revenue generated from tourism activities, such as accommodation, transportation, and entrance fees, contributes to the country’s foreign currency earnings.
The possession of a port and its impact on a landlocked country like Ethiopia can be substantial. Here are some key points to consider: Having direct access to a port significantly reduces transportation costs for imports and exports. Currently, Ethiopia relies on neighboring countries’ ports, such as Djibouti and Sudan, which can be more expensive and time-consuming. Owning or having guaranteed access to a port would reduce these costs, making imports more affordable and boosting the country’s competitiveness in the global market.
A port allows a landlocked country to diversify its trade routes and partners. The opportunity gained to access to port as the result of memorandum of understanding signed between Ethiopia and Somaliland opens up more opportunities for Ethiopia to explore new markets, expand its export potential, and import goods from a wider range of countries. Enhanced trade diversification can contribute to economic growth, job creation, and the development of various industries.
The presence of a port can attract foreign direct investment by providing an efficient logistics infrastructure for businesses. Access to a port facilitates the movement of goods, reduces trade barriers, and enhances connectivity, making Ethiopia a more attractive destination for foreign investors.
A port can serve as a gateway for regional integration, allowing Ethiopia to participate more actively in regional trade agreements and initiatives. It promotes economic cooperation with neighboring countries, fosters the development of regional infrastructure projects, and strengthens political ties, leading to greater stability and shared prosperity.
Upon the realization for Ethiopia accessing to the port, it will potentially import energy resources more efficiently. This is particularly relevant for landlocked countries that rely on imported oil and gas. Direct access to a port would enable Ethiopia to diversify its energy sources, attract investment in energy infrastructure, and enhance energy security.
As history has that the country had three ports and used to be the conqueror of the world and influential state in the Horn of African region and Asia Minor. The possession of ports appeared to be strategic input to establish strategic partnership along with maintaining robust diplomacy across the world.
Ethiopia had signified and dignifying history in doing so establishing strategic partnership with the ancient civilization starting from the most known human history. The history of the country which was depicted by the Greek and the Arabs clearly shows that the truth that the country had long experienced trade ties with ancient civilizations most notably with the Eastern Hemisphere even probably having bonds of long ties with the emerging states of the west.
Amid all these, the significance of port which presumably deliberately demarcated by the post-colonial agreement is believed to be a vengeance for one of the most populous country and beacon for African independence.
As one can see the map of Ethiopia and the regional demarcation of the Horn countries, it is almost ridiculous and contradictory logic may also be dangerous conspiracy of revenge. As the world witnessed the country had been one of those to build strong naval forces and a gate way to the Red Sea and the Gulf of Aden.
Furthermore, documents unveil that over three billion people depend on marine and coastal resources for their livelihoods. In addition, oceans are crucial for global food security and human health. They are also the primary regulator of the global climate, an important sink for greenhouse gases and they provide us with water and the oxygen we breathe.
In conclusion, the possession of a port by Ethiopia would have significant economic, political, social and diplomatic implications for the country. It would reduce transportation costs, promote trade diversification, attract foreign direct investment, enhance regional integration, and improve energy security. These factors collectively contribute to economic growth, job creation, and overall development in the country.
BY LAKACHEW ATINAFU
THE ETHIOPIAN HERALD FRIDAY 12 JANUARY 2024
