By. ENG Moussa Abdillahi Nour
International Relations and Diplomacy
The African Continental Free Trade Area (AfCFTA) is the largest free trade agreement in the world, connecting 1.4 billion people and a combined GDP of $3.4 trillion. After several postponements, Ethiopia is expected to formally accede to AfCFTA on 3 October 2025, opening its domestic market to continental free trade.
As a landlocked nation with over 120 million people, Ethiopia’s trade competitiveness depends on secure, efficient, and affordable access to maritime gateways. Somaliland’s Berbera Port, strategically located on the Gulf of Aden and linked by the Berbera Corridor to Ethiopia, is well positioned to become a primary logistics hub for Ethiopian goods entering and leaving AfCFTA markets.
Opportunities for Somaliland
1. Berbera as Ethiopia’s Preferred Trade Route
– Berbera offers the shortest maritime outlet for eastern and central Ethiopia.
– Increased Ethiopian exports and imports under AfCFTA could transform Berbera into a regional cargo hub.
2. Revenue Generation & Employment
– Growth in port usage and transit trade could generate:
• Port fees, customs duties, and service charges
• Thousands of new jobs in logistics, trucking, warehousing, and port operations
3. Regional Integration
– Establishment of dry ports, bonded warehouses, and free trade zones along the Berbera Corridor.
– Opportunity for joint Somaliland–Ethiopia initiatives in trade facilitation and customs harmonization.
4. Infrastructure Investment
– Upgrading the Berbera–Togwajaale corridor will attract donor support and private investment.
– Expansion of industrial parks, fuel depots, cold storage, and ICT systems will increase Somaliland’s value-added services.
5. Strategic Positioning
– Berbera’s role under AfCFTA enhances Somaliland’s regional and geopolitical relevance.
– Potential to attract foreign direct investment (FDI) in logistics, manufacturing, and financial services.
Key Policy Recommendations
- Strengthen Bilateral Trade Framework with Ethiopia
– Negotiate preferential agreements for Ethiopian goods transiting via Berbera.
– Establish joint trade and customs committees.2. Invest in Trade-Related Infrastructure
– Prioritize rehabilitation of the Berbera Corridor (bridges, highways, ICT systems).
– Develop dry ports and logistics hubs in Togwajaale and Berbera.3. Develop Special Economic Zones (SEZs)
– Promote Berbera Free Zone for manufacturing, assembly, and re-export industries.
– Incentivize investors through tax breaks and streamlined regulations.4. Enhance Trade Facilitation & Digitalization
– Introduce electronic customs clearance systems to speed up transit.
– Encourage private sector investment in blockchain and fintech trade solutions.5. Promote Regional Partnerships
– Align Berbera’s growth with AfCFTA’s vision of intra-African trade integration.
– Engage Gulf States, donors, and multilateral partners to support port-linked development.
Conclusion
Ethiopia’s accession to AfCFTA presents a historic opportunity for Somaliland. By positioning Berbera Port as the Horn of Africa’s gateway to continental markets, Somaliland can leverage its geography into economic growth, job creation, and political recognition. Proactive policy measures, infrastructure development, and regional cooperation will ensure Berbera becomes a flagship trade hub under AfCFTA.