Ethiopia, Somaliland sign Red Sea port, trade deal

By Hussein Ali Nur

HARGEISA, Somalia, May 29 (Reuters) – Landlocked Ethiopia will use the Red Sea port of Berbera in the self-declared enclave of Somaliland to import fuel and goods, officials said on Sunday.

A deal, which goes into effect on July 1, closed out a four-day trade mission led by Ethiopian Revenue Minister Getachew Belay.

The delegation assessed the port, on the Gulf of Aden in northwestern Somalia, its oil terminal and the roads to Ethiopia’s remote eastern regions along the Somali border.

Somaliland, a former British protectorate, broke away from Somalia in 1991 and has been a relatively stable enclave, which held its first multiparty election in 2003. It is not recognised internationally.

The rest of Somalia has had no central authority since the ousting of former President Mohamed Siad Barre in 1991 and has been devastated by warlords and their militias.

“Somaliland is at peace with itself. That means it also has peace with its neighbours,” a state of affairs conducive to trade, Getachew said after the deal was signed on Saturday.

Somaliland Foreign Affairs Minister Edna Aden Ismail told reporters on Sunday the port and roads will need upgrading to accommodate the increased trade.

Somaliland and Ethiopia will jointly approach donors for financial aid, Ismail said.

The two legalised bilateral trade in August 2003, established customs posts and agreed to improve road links.

Trade between the two countries is mostly limited to the stimulant leaf qat, fruit and vegetables exported by Ethiopia and food and other commodities exported by Somaliland.