Ethiopia signs historic MoU with Somaliland to gain Red Sea access in exchange for Ethiopian Airlines Stake

Ethiopia and Somaliland have officially inked a memorandum of understanding (MoU), marking a significant development that allows Ethiopia access to the Red Sea. 

The agreement, signed in Addis Ababa during a ceremony attended by Ethiopian Prime Minister Abiy Ahmed and Somaliland President Muse Bihi Abdi, aims to bolster economic, security, and political ties between the two nations.

National Security Adviser Redwan Hussein, representing Prime Minister Abiy Ahmed, indicated that the deal would pave the way for Ethiopia to secure sea access and diversify its trade routes beyond its reliance on neighboring Djibouti.

Ethiopia, having been cut off from the coast following Eritrea’s declaration of independence in 1993, views this agreement as a historic opportunity to regain direct access to the Red Sea. 

Abiy Ahmed’s office emphasised the strategic importance of the deal, positioning it as a stepping stone towards realising Ethiopia’s aspirations for enhanced maritime connectivity.

As part of this groundbreaking accord, Somaliland is set to gain recognition as an independent nation from Ethiopia, a move that aligns with the broader geopolitical landscape in the Horn of Africa. 

The agreement additionally opens the door for Ethiopia to establish commercial marine operations through access to a leased military base on the Red Sea.

Somaliland, despite declaring autonomy from Somalia in 1991, has struggled for international recognition. 

The agreement not only secures Red Sea access for Ethiopia but also includes Somaliland receiving a stake in Ethiopia’s state-owned Ethiopian Airlines, further solidifying the economic partnership between the two nations.

The detailed negotiations, slated to conclude within a month, will determine the extent of Ethiopia’s stake in its flagship carrier, Ethiopian Airlines. 

This diplomatic breakthrough comes on the heels of Ethiopia’s recent assertion of its right to access the Red Sea, sparking regional concerns. 

The resumption of talks between Somalia and Somaliland, mediated by Djibouti, indicates a broader effort to address regional disputes and foster stability in the Horn of Africa.