The Government of Ethiopia has signed an agreement with UAE-based DP World and the Somaliland Port Authority to purchase a 19% share in Berbera Port, which is situated in Somaliland.
DP World will own a 51% stake in the port following the completion of the deal, while Somaliland and Ethiopia will hold shares of 30% and 19% respectively.
Ethiopia is also set to invest in a variety of infrastructure in order to develop the Berbera Corridor as a trade gateway for Somaliland.
In addition, a new berth is expected to be built at the Port of Berbera as part of the Berbera master plan, which has already been initiated by DP World.
New equipment will also be installed at the port to further improve its efficiency and productivity.
The first cranes to be supplied under the project are slated for delivery later this year.
DP World Group chairman and CEO Sultan Ahmed Bin Sulayem said: “Ethiopia is home to approximately 110 million people.
“The ports of Berbera and Doraleh will provide significant capacity to the region.
“Both these ports, and more capacity, will be needed to serve the region’s growth potential in the future.
“Having the Government of Ethiopia as a partner will enable DP World to support the government in achieving its impressive development plans.”
Somaliland aims to leverage the latest deal to address some of the problems faced by the country in terms of employment and investment.
The arrangement is also anticipated to help Ethiopia secure an additional logistical gateway for its increasing import and export trade operations.