MoU between Somaliland and Ethiopia. 2024

Abstract:

This paper offers an analysis of the Ethiopian-Somaliland Agreement, with regards to the Economic environment of both countries and its implications. It highlights that the lack of international recognition in Somaliland affects foreign investment inflows into the territory. The paper also takes note of the economic shift in Somaliland towards a service-oriented economy anchored on the Berbera port trade. Additionally, it underscores the need for global acceptability as an impetus for future economic growth as well as dominance by unregulated sectors. Furthermore, it examines Ethiopia’s agricultural reliance and desire to secure Red Sea entry points through this treaty among others including possible geopolitical implications of such agreement within regions characterized by conflicts. Lastly, the abstract points out increasing tensions between Somalia against Ethiopia which may result in a wider regional war.