Ethiopian government picks up 19 percent stake in DP World Berbera Port
March 7, 2018: The Ethiopia government has become a shareholder of the Port of Berbera after it signed an agreement with DP World and the Somaliland Port Authority recently in Dubai. According to the agreement, DP World will hold 51 percent stake in the Port of Berbera. Similarly, Somaliland and Ethiopia will hold 30 percent […]
March 7, 2018: The Ethiopia government has become a shareholder of the Port of Berbera after it signed an agreement with DP World and the Somaliland Port Authority recently in Dubai.
According to the agreement, DP World will hold 51 percent stake in the Port of Berbera. Similarly, Somaliland and Ethiopia will hold 30 percent and 19 percent stakes, respectively.
The government of Ethiopia will also invest in infrastructure to develop the Berbera Corridor as a trade gateway for the inland country, which is one of the fastest growing countries in the world.
There are plans to construct an additional berth at the Port of Berbera in line with the Berbera master plan, which DP World has already started implementing, while adding new equipment to further improve efficiencies and productivity. The first crane is scheduled to arrive later this year.
Expressing the importance of working with the governments of Somaliland and Ethiopia on the projects, which will fuel trade and employment opportunities in the region, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World said: “I am excited about the prospects of working with the Ethiopian government. Ethiopia is home to approximately 110 million people. The ports of Berbera and Doraleh will provide significant capacity to the region. Both these ports and more capacity will be needed to serve the region’s growth potential in the future.”
“Having the government of Ethiopia as a partner will enable DP World to support them in achieving its impressive development plans. This development will further strengthen of our partnership, and demonstrates our commitment to the people of Somaliland and Ethiopia, and we look forward to working together,” said Bin Sulayem.
”The economies of the region are growing at a pace that needs the development of Berbera supplementing Djibouti and additional gateways in the future,” said Bin Sulayem.
Dr. Saad Al Shire, minister of foreign affairs and international co-operation of Somaliland said: “This is an important project, which address some of the problems faced by Somaliland related to employment and investment. It’s a welcome development that will benefit the region as a whole. The economies of the region are growing at a pace that necessitates development of multiple ports and outlets. The extension of the port will increase capacity of the region to accommodate the increase in trade.”
Ahmed Shide, transport minister of Ethiopian said: “After a year of serious negotiations, Ethiopia has concluded an agreement with the Somaliland Ports Authority and DP World that will give the government of Ethiopia 19 percent stake in the joint venture developing the Port of Berbera. The agreement will help Ethiopia secure an additional logistical gateway for its ever increasing import and export trade driven by its growing population and economy. In addition, Ethiopian participation in the development of port of Berbera and the Berbera Corridor will help bring increased economic development and opportunity to the people of Somaliland. Ethiopia will continue to further invest in and develop the Djibouti corridor and further consolidate the use of existing ports in Djibouti. It will also look for other opportunities to develop additional ports and logistics corridors in the region.”