Issue No 630

Published 03 Jan 2024

Ethiopia and Somaliland: The Risks and Opportunities

Published on 03 Jan 2024 20:01 min

Happy New Year!

We trust you had a wonderful holiday season.

As we commence this new year, we extend a warm welcome back to all our esteemed subscribers. At Sahan, we are excited about the prospects this year holds and are eager to continue providing you with insightful, engaging, and valuable content.


Ethiopia and Somaliland: The Risks and Opportunities

On New Year’s Day, Ethiopia and Somaliland initialled a Memorandum of Understanding (MoU) that would allow the landlocked Horn state to build a military outpost and a commercial port on the Somaliland coast. Somalia termed this illegal and an “act of aggression” and recalled its ambassador from Addis Ababa. The row has now deepened Somali anger and nationalistic fervour, and relations between Addis and Mogadishu have plummeted to an all-time low. In a speech at an emergency session of parliament, President Hassan Sheikh Mohamud warned that Al-Shabaab would exploit the deal to radicalise and recruit, as it did in 2006 when Ethiopia invaded Somalia to dislodge the Union of Islamic Courts.

The full content of the MoU between Ethiopia and Somaliland has not yet been disclosed, so there is still ambiguity surrounding the document. But under the terms of the provisional agreement, as officially reported, Ethiopia will lease a 20-km strip along Somaliland’s coast for military basing and, quite possibly, commercial purposes. In return, Somaliland would be given a stake in Ethiopian Airlines; the exact percentage was not divulged. 

Though the MoU makes no direct reference to formal recognition of Somaliland, at a news conference following the signing ceremony, Somaliland President Muse Bihi Ahmed, flanked by Ethiopian Prime Minister Abiy Ahmed Ali, said Ethiopia would recognise Somaliland. He also said the lease granted to Ethiopia would last 50 years.

Speaking a day after the accord, Redwan Hussein, Ethiopia’s powerful National Security Advisor, declined to comment on the issue of recognition, but promised that more content from the MoU would be made available to the media in the coming days. He also added a twist – that Somaliland may be granted a stake in the Ethiopian firm EthioTel, and not necessarily in Ethiopian Airlines. The same day, Ethiopia’s Minister of State for Foreign Affairs, Misganu Arga, was quoted by the BBC as confirming his government’s intention to recognise Somaliland.

PM Abiy is certainly not risk adverse and is likely calculating that Ethiopia can withstand regional and international fall-out regarding the MOU in the long-term, and that its benefits outweigh its risks. But his gamble on Somaliland could become complicated. The scale of the backlash in Somalia and initial boilerplate criticism from the European Union may discourage him from moving briskly on recognition. 

In Somaliland, the MOU has been warmly welcomed; excited crowds took to the streets on 2 January in a spontaneous show of support for the government. Muse Bihi likely views the deal as a ticket to re-election. But there are multiple complications. According to informed sources, one possible site identified for leasing is Bulaxaar in Lughaya District in the Awdal Region, a restive part of Somaliland. The area had previously been scouted by the Egyptians in 2019. Awdal is predominantly inhabited by the Gadabursi, a non-Isaaq clan that has unstable relationship with Hargeisa, and the Habr Awal, Muse Bihi’s sub-clan. It is conceivable that the MOU could surge discontent and roil politics in Awdal.

Addis Ababa likely views the MOU as a strategic victory commensurate with its global importance; Ethiopia has just become a member of the influential BRICS group of nations and could now gain a foothold on the strategic Bab el-Mandeb strait, through which nearly 12% of world trade transits. Abiy and his strategists may wish to use this future outpost to rebuild Ethiopia’s navy, along with its ‘blue water’ capabilities. This could also be a way of increasing Addis’ regional leverage and strengthening its bargaining power with Gulf countries – as well as its perennial rival, Egypt. It is thus reasonable to conclude that the driving logic behind the deal is largely framed in terms of strategic security.

For much of the last year, officials in Addis have been grumbling about growing Egyptian influence in Somalia. Reports of an emerging security and military partnership between Cairo and Mogadishu have gathered apace; the latest are claims that Egypt is establishing an airbase in the Middle Shabelle Region to rebuild the defunct Somali Air Force. Ethiopian policy in relation to the Red Sea has primarily been driven by a sense of vulnerability, and apprehension about perceived Egyptian ‘encirclement.’ Yesterday evening, Somali President Hassan Sheikh reached out to Egypt to appeal for its support. Claims that the UAE may have helped to facilitate the Ethiopia-Somaliland MOU could also contribute to potentially destabilising geopolitical competition in the Horn. 

Mogadishu appears furious at the deal, and nationalist forces seem keen to capitalise on the ferment. But since there is little Somalia can do to obstruct the MOU beyond diplomatic posturing, it is possible that the UAE – with unique access to and leverage with all parties to the current dispute – may calm tensions and suggest a modus vivendi for everyone.

Somaliland is wearied by serial talks with Somalia; a dozen previous rounds of talks have yielded a series of stillborn agreements, dishonoured by Mogadishu. Hargeisa now sees formal bilateral state recognition as the only viable route to achieve its goals. If Mogadishu truly wants Hargeysa to return to political dialogue, then it will need to offer a genuine political pathway to determination of Somaliland’s final status. But for now, at least, Villa Somalia seems inclined towards jingoism and histrionics. It is to be fervently hoped that cooler heads will prevail.

By the Somali Wire team 

To continue reading, create a free account or log in.

Gain unlimited access to all our Editorials. Unlock Full Access to Our Expert Editorials — Trusted Insights, Unlimited Reading.

Create your Sahan account Login

Unlock lifetime access to all our Premium editorial content

You may also be interested in

Issue No. 129
Centring North Eastern Kenya - The Rise Of Kenya's Ethnic Somalis
The Horn Edition

A president does not pay a visit to Wajir by accident. When William Samoei Ruto chose Wajir as the centre stage for Kenya’s Madaraka Day celebrations on 1 June — the first sitting president to do so — he was not merely varying the ceremonial calendar. He was making a premeditated statement about who belongs at the centre of Kenya’s state and who no longer belongs at its margins. The message was not merely ‘taking Nairobi to NorthEastern.’ It was the centring and mainstreaming of an ethnic Somali-dominated region that, for much of Kenya’s post-colonial history, has been treated as a security issue rather than a political constituency.


28:45 min read 26 Jun
Issue No. 962
Somaliland’s Recognition Angst
The Somali Wire

Somaliland President Abdirahman Irro’s trip to Israel in June (from 14-17) was far more than symbolism. Not only was it a calculated strategic diplomatic play, and a chance for Somaliland to appear on the world stage, but also an opportunity for Somaliland to present itself as a fully-functional state, able to conduct foreign relations and cut bilateral deals. Irro, a seasoned former diplomat, navigated the intricate demands of state protocol with remarkable ease - cutting an immaculate, regal figure in his navy-blue suit. Accorded full head-of-state honours, he laid a wreath at the Theodore Herzl mausoleum, engaged in high-level talks with President Isaac Herzog and Prime Minister Benjamin Netanyahu, opened the new Somaliland embassy in Jerusalem and convened meetings with Knesset members, senior officials, and business leaders. For Israel, hosting President Abdirahman Irro in Jerusalem functioned to signal its strong commitment to deepening strategic ties while also countering perceptions of waning diplomatic momentum.


22:37 min read 24 Jun
Issue No. 961
Deciphering Al-Shabaab's Radio Silence
The Somali Wire

Never interrupt your enemy when they are making a mistake. Napoleon Bonaparte’s classic rule of combat seems to be the guiding doctrine behind Al-Shabaab’s sudden, uncharacteristic radio silence as Mogadishu’s political elite tear themselves apart. As the ‘government-in-waiting’, one would have assumed the militants would take full advantage of its adversaries’ internal divisions, maximising the propaganda opportunities this offers, and campaign for their own cause. Typically quick to weaponise any intra-Somali division, the militant group's decision to sit out the latest intra-Somali fracturing is intriguing. By withholding its usual blitz of propaganda, the group is playing a longer, quieter game - waiting for the federal house to implode further before stepping in.


20 min read 17 Jun
Issue No. 960
The Galmudug Vote – The Next Powder Keg
The Somali Wire

While much international attention is on Mogadishu – understandably so - another electoral crisis is brewing in the regional state of Galmudug. Historically unstable, prone to Al-Shabaab violence and destabilisation and wracked by chronic inter-clan frictions and periodic armed hostilities, the looming vote appears likely to aggravate the situation and foment more divisions.


7:13 min read 10 Jun
Issue No. 959
Mogadishu on the Edge: The Danger Has Not Passed
The Somali Wire

Two days of heavy clashes (3–4 June) in the Somali capital, Mogadishu, between federal troops and opposition-aligned forces have underscored both the fragility of the city’s security environment and the volatility of electoral politics. Although relative calm has since returned to the two hardest-hit districts - Hawl Wadaag and Abdiaziz - and mediation efforts have intensified, tensions remain high, fuelling fears of renewed armed skirmishes. Credible reports of mass clan militia mobilisation on the edges of Mogadishu speak to a conflict that is widening. The militarisation of politics and elite fragmentation over the electoral process have shattered a core assumption: that Somali leaders will ultimately step back from the brink to negotiate a way forward. Consequently, the country is entering a perilous phase in which domestic factions alone cannot resolve the impasse, making neutral, external mediation a necessity.


10:12 min read 08 Jun
Issue No. 958
Deni and the Tough Road Back to Mogadishu
The Somali Wire

Puntland President Sa'id Abdullah Deni is unofficially in the race for the federal presidency of Somalia. By most accounts, the regional leader is running again and this explains his re-engagement with Mogadishu after a three-year hiatus. Driven by shifting electoral dynamics, Deni’s decision to re-engage with the centre forces him to confront a radically altered political landscape in Mogadishu. Under President Hassan Sheikh Mohamud (HSM), the federal government has rewritten the rules of Somali politics, altering the institutional framework and consolidating executive authority.


8:08 min read 03 Jun
Issue No. 128
The US Eritrea Pivot – Opportunities, Risks, Dilemma
The Horn Edition

A flurry of media reports in recent months suggest the US and Eritrea could be inching towards a potential deal to reset decades of frosty relations and a partial lifting of American sanctions imposed in 2021. The news of discreet talks between the two sides, mediated by Egypt, was initially reported by the influential Washington Post newspaper in April 2026 and have since been partially confirmed by official sources.


34:56 min read 29 May
Issue No. 957
How Somalia's South West Vote Went South
The Somali Wire

On 10 May, the Federal Government of Somalia (FGS) unilaterally conducted its contentious 'one-person-one-vote' (OPOV) electoral model in South West State (SWS), directly overriding opposition demands for a negotiated, consensus-based framework. Crucially, the very laws underpinning these OPOV elections are themselves deeply contested: the electoral framework was created following a rushed revision of Somalia’s constitution that many federal member states and opposition groups rejected. The vote, exclusively managed by the National Independent Electoral and Boundaries Commission (NIEBC), saw localised polling in 13 districts and across 126 poll centres and 276 stations. While 376,212 citizens were registered, actual turnout reached 132,430 voters - a participation rate of approximately 35.2% - with 128,276 valid ballots cast and 4,154 deemed spoilt/invalid. The electoral outcome, unsurprisingly, solidified a decisive mandate for Hassan Sheikh Mohamud’s Justice and Solidarity Party (JSP); the governing party secured an absolute majority of 51 out of 95 contested legislative seats, comfortably outpacing its closest rival, Sharif Hassan Sheikh Aden’s Ururka Horumarka, which claimed 14 seats.


17:12 min read 27 May
Issue No. 956
The Perils of a Grey Transition
The Somali Wire

The Federal Government of Somalia (FGS) has effectively entered a 'grey transition' - a deeply fraught and hotly-contested interregnum that could upend decades of state-building and foment greater instability. By utilising the March 2026 constitutional amendments to extend his presidential mandate until May 2027, Hassan Sheikh Mohamud (HSM) has effectively plunged the fragile Horn of Africa state into a profound period of severe internal strain and legitimacy crisis. This legalistic manoeuvre has roiled domestic politics and put Western partners of Somalia in a difficult spot. If Somalia's Western allies concede to HSM's fait accompli without extracting concessions from him on a negotiated settlement, they are likely to embolden Hassan Sheikh.


0 min read 20 May
Scroll