Somaliland secures record $442m foreign investment deal

[Bernie Madoff]

(CNN)The unrecognized nation of Somaliland, a semi-autonomous region of Somalia, has secured its largest ever foreign investment deal.

Dubai-based development firm DP World will pump $442 million into transforming the country's Berbera Port on the Gulf of Aden, with the ambition of creating a regional trade hub.
DP World has committed to managing the port for 30 years. The company plans to develop an ambitious new shipyard, quay, and free trade zone on the site.


The Somaliland government hopes the development will enable it to rival neighboring Djibouti as a point of entry for East African trade, and the project could also prove a much-needed economic boost.

State-in-waiting
Somaliland declared independence in 1991, breaking away from war-torn Somalia.
But despite maintaining relative stability and holding free elections, not a single country has recognized its statehood. The international community has prioritized the development of Somalia as a united country.
The deal with DP World represents a major coup for Somaliland as it demonstrates the country's clout on the world stage.
The investment is timely. Somaliland is blighted by youth unemployment of over 60%, and its worst drought in years has affected 1.5 million people - over 30% of the population.
The development divides opinion among the local population.
Jama Jusse Jama, the director of the Red Sea Cultural Association in Somaliland's capital Hargeisa, believes the project will create opportunities.
"Berbera Port is extremely fundamental for Somaliland," he told CNN. "(This investment) will boost the connection with the rest of Africa, especially Ethiopia. It's too early to say it's all positive, but I am confident it's a step forward."
But there are fears that land around the site will be bought up by wealthy businessmen at the expense of the wider population.
"The makeup of Berbera will definitely change," Mohamed Aden Hassan, head of local news channel StarTV, told Reuters. "It is already showing signs of becoming an increasingly exclusive club."

Strategic location
DP World's interest in this little-known fishing town is largely explained by its location, sitting conveniently at the apex of trade routes in the Red Sea, the Gulf of Aden and East Africa.
"The Horn of Africa is a fast growing region with some of the fastest growing economies in the world," says DP World CEO Sultan Ahmed Bin Sulayem. "DP World Berbera builds on growth in the region where we are enabling trade."
The location also offers opportunities to landlocked Ethiopia, which is heavily reliant on neighboring Djibouti, with 90% of trade passing through the tiny state.
Ethiopia currently imports limited quantities of food through Berbera, but the imminent development will allow it to vastly scale up traffic through the port.
The Somaliland government claims it has an agreement for Ethiopia to take a 19% share of the port, which should deliver mutual benefits.
"Ethiopia having access to the sea is a major deal for Somaliland, and Ethiopia," says Laura Hammond, an East Africa specialist at the School of Oriental and African Studies (SOAS) in London.
"Ethiopia has already built a road up to the border with Somaliland basically advertizing the fact that they're waiting to do business."
For its part, Somaliland will gain a powerful partner and ally. Ethiopia is one of the most dynamic economies in Africa, the host nation of the African Union, and a key driver of international diplomacy.
After two decades in the economic and political wilderness, the unrecognized state may finally be establishing itself on the world stage.

http://www.cnn.com/2017/08/01/africa/somaliland-new-gateway-africa/index.html

@Foreman @merka @waraabe

Nice little article by CNN

 

[Yonis]

Just for anyone wondering, this is the Berbera deal already confirmed several months ago.

 

[Menelik III]

Somaliland and Ethiopia should build a railway. The railway will begin in berbera and go through Hergeisa and eventually connect to the Addis-Dj line at Dirre Dawa. I'm not exactly sure but I think it's apart of the Railroad master plan of Ethiopia. The only thing stopping this is the independence of Somaliland.

 

[fox]

Somaliland and Ethiopia should build a railway. The railway will begin in berbera and go through Hergeisa and eventually connect to the Addis-Dj line at Dirre Dawa. I'm not exactly sure but I think it's apart of the Railroad master plan of Ethiopia. The only thing stopping this is the independence of Somaliland.

Another railroad from Harar to Jigjiga then to Hargeisa then to Burco then to Berbera!

 

[Menelik III]

Another railroad from Harar to Jigjiga then to Hargeisa then to Burco then to Berbera!

I think it would be impractical, since Burco to hergeisa is a short drive away. I think Somaliland should build solid roads connecting the capital to the periphery.

 

[Xooshdheere]

 

[Foreman]

Best time to buy lands anywhere along the course of Bebrera corridor.

 

[Prince Abubu]

Population of Somaliland 5 million

GDP per capita ~ $600

10% income tax alone on all household income would generate $300 million a year.


Why is Somaliland (and Somalia for that matter) so corrupt and badly run? We've effectively sold our port for just over a year's income tax revenue.

 

[Yonis]

Population of Somaliland 5 million

GDP per capita ~ $600

10% income tax alone on all household income would generate $300 million a year.


Why is Somaliland (and Somalia for that matter) so corrupt and badly run? We effectively sold our port for just over a year's income tax revenue.

Wrong, Somaliland's GDP per capita is $347 according to World Bank report in January 2017

http://documents.worldbank.org/cura.../pdf/Somalia-SJPER-01302017-Final-Version.pdf

And the SL population is nowhere near 5 million

 

[Prince Abubu]

That's an inaccurate estimate using government statistics. Truth is, there's a lot of black money circulating inside Somaliland.

 

[waraabe]

Wrong, Somaliland's GDP per capita is $347 according to World Bank report in January 2017

http://documents.worldbank.org/cura.../pdf/Somalia-SJPER-01302017-Final-Version.pdf

And the SL population is nowhere near 5 million

wanna cry

 

[YoungFarah]

Yay to development as always

 

[El padrone]

Ive already shared that cnn article nacalaa. lol

Srsly sland gonna eat good.

 

[El padrone]

Somaliland and Ethiopia should build a railway. The railway will begin in berbera and go through Hergeisa and eventually connect to the Addis-Dj line at Dirre Dawa. I'm not exactly sure but I think it's apart of the Railroad master plan of Ethiopia. The only thing stopping this is the independence of Somaliland.

That would be inefficient. theres not much cargo requirin rail. berbera corridor road is enough for now. till ethiopia executes their 30 pct trade thru berbera port

 

[Menelik III]

That would be inefficient. theres not much cargo requirin rail. berbera corridor road is enough for now. till ethiopia executes their 30 pct trade thru berbera port

The railway takes at least 4-5 years. Somaliland should at least lay the ground work now. Ethiopia's shipping needs are increasing by 25% every year. Djibouti has already built two new ports for Ethiopia i.e. Doraleh Multipurpose Port And another port at Oblock. Both are due to be linked with railway to Ethiopia within the coming years.

 

[oday1kenobi]

Somaliland and Ethiopia should build a railway. The railway will begin in berbera and go through Hergeisa and eventually connect to the Addis-Dj line at Dirre Dawa. I'm not exactly sure but I think it's apart of the Railroad master plan of Ethiopia. The only thing stopping this is the independence of Somaliland.

The only problem is that none of Ethiopia's planned extensions will run into the Somali region. Seeing as how Ethiopia is an important stakeholder in regard to Berbera port, it would've made sense to extend the line to Jijiga, halt it there till developments in Berbera/SL kick off and then extend the line to Berbera via wajaale.

 

[El padrone]

The railway takes at least 4-5 years. Somaliland should at least lay the ground work now. Ethiopia's shipping needs are increasing by 25% every year. Djibouti has already built two new ports for Ethiopia i.e. Doraleh Multipurpose Port And another port at Oblock. Both are due to be linked with railway to Ethiopia within the coming years.

 

[Menelik III]

The only problem is that none of Ethiopia's planned extensions will run into the Somali region. Seeing as how Ethiopia is an important stakeholder in regard to Berbera port, it would've made sense to extend the line to Jijiga, halt it there till developments in Berbera/SL kick off and then extend the line to Berbera via wajaale.

Yea, I think the problem or resent of Ethiopia building railroads in the Somali region is because of the risk of insurgency in the area. If Sl agrees to build a railway then Ethiopia can easily build one from dire dawa to the border. Last I heard was that Ethiopia was taking out loans from the world bank on behalf of SL for a main road for the corridor.

I think the Somali region should be given autonomy so it can at last see peace and prosper.

 

[Canuck]

I think it would be impractical, since Burco to hergeisa is a short drive away. I think Somaliland should build solid roads connecting the capital to the periphery.

@Prince Abubu @Asma @Bahal habashi that knows small details like this. Now landers get your boy.

 

[Canuck]

Yea, I think the problem or resent of Ethiopia building railroads in the Somali region is because of the risk of insurgency in the area. If Sl agrees to build a railway then Ethiopia can easily build one from dire dawa to the border. Last I heard was that Ethiopia was taking out loans from the world bank on behalf of SL for a main road for the corridor.

I think the Somali region should be given autonomy so it can at last see peace and prosper.

Lander spotted