Controversial deal between UAE’s DP World and Ethiopia has opened old wounds of the decades-long discord between Somalia and Somaliland, in a major diplomatic stand-off that has sucked in several Arab countries.
Somalia argues that Somaliland cannot enter such international contracts with other countries as the responsibility to sign such agreements remains to the Federal Government of Somalia, but Somaliland said that it is a sovereign state that can enter into independent agreements.
Somalia refuses to recognise the 1991claim of autonomy by Somaliland.
Ethiopia’s latest attempt to overcome its geographical and economic disadvantage as a landlocked country by acquiring a stake in the Somaliland port of Berbera earlier this month has re-ignited a long-standing rivalry between the Federal Republic of Somalia and the self-declared autonomous region of Somaliland over the latter’s determination to separate from Somalia.
Sources privy to the matter say that the controversial deal which was signed on March 1 has opened old wounds of the decades-long discord between the two countries, in a major diplomatic stand-off that has sucked in several Arab countries.
Sharmarke Jama, principal consultant at UAE-based consultancy Clear Horn Ltd and a former Somaliland trade and economic adviser, said that Mogadishu’s resistance to the deal could be linked to the involvement of Ethiopia, which has traditionally conflicted with Somalia for over six decades.
“Somalia feels betrayed by Somaliland,” said Mr Jama.
Through the tripartite agreement, Ethiopia acquired a 19 per cent stake in the Berbera port for $80 million, while UAE logistics firm DP World and the Republic of Somaliland retained 51 per cent and 30 per cent stakes respectively.
Somalia opposed the deal involving Ethiopia, declaring it null and void on the grounds that it breached international standards and violates the sovereignty of Somalia, a stance that Somaliland and DP World have dismissed.