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Ethiopia Opens Customs Points in Berbera of Somaliland

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The opening of Ethiopian transit customs points in the port city of Berbera, located in the breakaway region of Somaliland, has reignited geopolitical tensions in the Horn of Africa. According to Somaliland’s Ministry of Financial Development, these customs points will facilitate the transportation of unloaded cargo from Berbera to various destinations within Ethiopia. The development comes as part of a memorandum of understanding (MoU) signed earlier this year between Ethiopia and Somaliland, sparking protests from Somalia and raising concerns about regional stability.

In January, Ethiopia and Somaliland signed a significant agreement aimed at bolstering trade and infrastructure cooperation. Under the terms of the MoU, Berbera’s port facilities will serve as a critical transit hub for Ethiopian goods, providing the landlocked country with an alternative maritime route. The establishment of Ethiopian customs checkpoints within Somaliland marks a milestone in Ethiopia’s efforts to diversify its access to the sea, which is vital for its economic growth and regional trade ambitions.

For Somaliland, the agreement with Ethiopia is a strategic move to attract foreign investment and solidify its economic independence. Berbera, a strategically located port on the Gulf of Aden, has long been seen as a key asset for Somaliland’s aspirations for international recognition. The port’s expansion, supported by investments from the United Arab Emirates’ DP World, has transformed it into a major maritime hub capable of competing with regional ports such as Djibouti.

However, the collaboration has triggered sharp responses from Somalia’s federal government, which views Somaliland as an integral part of its territory. Somalia’s government has rejected the agreement, calling it a violation of its sovereignty and territorial integrity. The move has further strained relations between Mogadishu and Addis Ababa while amplifying longstanding disputes over Somaliland’s status.

Somalia’s government has condemned the opening of Ethiopian customs points in Berbera as an illegal and provocative act. Somali officials argue that the agreement undermines their sovereignty and sets a dangerous precedent for foreign engagement with breakaway regions. “The federal government does not recognize any agreements signed without its consent,” a Somali government spokesperson said, emphasizing Somalia’s claim over Somaliland.

The move has heightened tensions across the Horn of Africa, a region already grappling with complex geopolitical rivalries, economic competition, and fragile political alliances. For Somalia, the establishment of Ethiopian customs checkpoints not only challenges its territorial integrity but also raises concerns about Ethiopia’s long-term intentions in the region. Observers note that Ethiopia’s growing interest in Somaliland could further complicate its relationship with Somalia, which remains a key partner in counterterrorism efforts and regional stability.

Ethiopia’s interest in Berbera stems from its landlocked geography and growing demand for diversified trade routes. Since the independence of Eritrea in 1993, Ethiopia has relied heavily on Djibouti for maritime access, with over 90% of its imports and exports passing through Djibouti’s ports. This dependence has made Ethiopia vulnerable to fluctuating costs and regional dynamics.

By partnering with Somaliland, Ethiopia seeks to reduce its reliance on Djibouti while securing alternative access to the Gulf of Aden and international shipping lanes. The development of the Berbera corridor—a trade route linking Berbera’s port to Ethiopia’s economic centers—is expected to bolster trade efficiency, reduce costs, and strengthen Ethiopia’s position as a regional economic powerhouse.

However, Ethiopia’s engagement with Somaliland carries significant political risks. Somalia’s protests have underscored the contentious nature of the agreement, and any further escalation could destabilize the fragile political landscape in the Horn of Africa. Analysts caution that Ethiopia must carefully navigate its relationships with both Somaliland and Somalia to avoid exacerbating regional rivalries.

The Horn of Africa remains a region of strategic importance and geopolitical complexity. The rivalry over maritime access, trade routes, and territorial disputes has fueled tensions among countries in the region for decades. Ethiopia’s move to establish customs points in Berbera reflects its economic priorities but risks inflaming regional sensitivities.

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