As Somaliland courts investment, the UAE-backed Berbera Port positions itself as a pivotal node for regional trade and maritime stability.
Somaliland’s Rising Maritime Profile
Somaliland’s Berbera Port, located on the Gulf of Aden, is fast emerging as a strategic asset in Africa’s evolving trade landscape. With investment and operational backing from the UAE’s DP World, the port is reshaping the region’s logistics map while attracting growing attention from global powers seeking secure access points in the Horn of Africa.
DP World’s involvement, along with UAE funding for an adjacent free zone and road network, has accelerated Berbera’s potential. “The vision of the Somaliland government and DP World is to make Berbera a regional marine trade and industrial hub,” Supachai Wattanaveerachai, chief executive for DP World’s Horn of Africa operations, told a Somaliland-UAE investment conference in June, according to The National.
Securing Trade Through Strategic Investment
Berbera Port’s value proposition goes beyond trade efficiency. For international partners, it offers a stable maritime node in a region plagued by piracy and geopolitical instability. With the Red Sea’s Bab el-Mandeb Strait witnessing increased tensions, Berbera is gaining relevance as a secure alternative. Dean Mikkelsen, a security and risk expert, said Berbera is “increasingly seen as a viable option to Djibouti, particularly amid the instability” in the Red Sea, The National reports.
The UAE’s broader regional security ambitions also factor into Berbera’s development. The Emirati government has not only invested in the port but also built a military airstrip nearby—highlighting the intersection of trade, security, and diplomacy.
Attracting Recognition Through Performance
Somaliland’s government views Berbera as more than infrastructure—it sees it as a path to international legitimacy. With its ability to handle large cargo volumes and connect to Ethiopia’s growing economy via the Berbera Corridor, the port is laying the groundwork for economic diplomacy. Despite its lack of formal recognition, Somaliland has leveraged Berbera’s performance to engage international investors and governments alike.
Analysts Urge Tempered Expectations
Carl Sykes, Group Managing Director at Neptune P2P Group, advised against overestimating Berbera Port’s regional dominance, noting its limited scale relative to Djibouti. While acknowledging Berbera as a promising alternative, Sykes pointed out that it currently handles under 500,000 TEUs annually—far below Djibouti’s multimillion-TEU throughput.
“While Berbera has made impressive gains in efficiency and cargo growth, it lacks the regional security guarantees enjoyed by Djibouti, which is protected by multiple international military bases,” he said.
Though Berbera could act as a supplementary node in regional supply chains, Sykes said its impact on broader global logistics disruptions would likely remain minimal due to its smaller scale, evolving infrastructure, and complex geopolitical context.
Ethiopia and the Berbera Corridor
Ethiopia, which has long relied on Djibouti for port access, is eyeing Berbera as a viable alternative. The corridor linking Berbera to Ethiopia’s capital, Addis Ababa, is under development, offering landlocked Ethiopia greater logistical flexibility, though expectations should be tempered by factors such as those highlighted by Sykes.
This diversification not only strengthens regional trade ties but also amplifies the port’s strategic utility. Somaliland’s long-term ambition is to become a trade gateway for East Africa, competing with established hubs in Djibouti and Mombasa.
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