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Djibouti rejects Ethiopia's full control of Tadjoura Port, offers joint management deal
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    Tuesday September 10, 2024


    A large cargo ship loaded with colorful shipping containers docks at a bustling Tadjoura port.

    Mogadishu (HOL) — Djibouti has announced it will not grant Ethiopia complete control over the Port of Tadjoura, offering instead a joint management agreement to secure trade relations between the two nations. This decision reverses earlier plans to transfer complete oversight to Ethiopia.

    Djibouti's Foreign Minister Mahmoud Ali Youssouf clarified that while Ethiopia will not be given 100% control of the port. "We never said we sold or handed over the port. What we're proposing is joint management of Tadjoura to maintain Ethiopia's trade flow," Youssouf said in a statement.

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    The $60 million Tadjoura Port, constructed by Djibouti, is struggling with operational costs, particularly employee wages. Youssouf explained that the government is looking to turn the port into a commercial hub to prevent Ethiopia from shifting its trade routes to neighbouring ports in Somaliland and Eritrea.

    With the Port of Assab in Eritrea expected to reopen soon, some Ethiopian cargo may be redirected there, while trade with Somaliland could also expand. "We want to make sure Djibouti retains a significant share of Ethiopia's business," Youssouf emphasized.

    Djibouti's President Ismail Omar Guelleh had previously floated the idea of giving Ethiopia full control of a port to de-escalate tensions between Ethiopia and Somalia. However, Youssouf clarified that while Djibouti remains focused on trade and economic cooperation, Ethiopia would not be granted a naval base. By offering Ethiopia access to the Port of Tadjoura, Djibouti hopes to maintain its position as Ethiopia's primary gateway to the sea.

    The Ethiopia-Somaliland MoU, signed earlier this year, has caused significant diplomatic fallout in the region. Somalia remains firm in its stance, with President Hassan Sheikh Mohamud stating that while Ethiopia is welcome to access Somali ports for commercial purposes, any military presence or naval base is out of the question. 

    Djibouti's proposal is part of ongoing efforts to mediate the crisis, with support from regional powers like Kenya and Turkey. Turkey has hosted rounds of negotiations between Somalia and Ethiopia, though no resolution has yet been reached.

     





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