Djibouti, a strategically located nation in East Africa, has proposed granting Ethiopia exclusive access to the Port of Tadjoura in an effort to ease regional tensions and provide a vital outlet for Ethiopia’s international trade. This move comes as landlocked Ethiopia has been seeking avenues to secure access to the sea, a long-standing challenge since Eritrea’s secession in 1993 left Ethiopia without a coastline.
The offer from Djibouti appears aimed at providing Ethiopia with a stable and direct route to the Gulf of Aden, potentially reducing the country’s reliance on Djibouti’s main port, which currently handles approximately 90 percent of Ethiopia’s external trade. Djibouti’s Foreign Minister, Mahamoud Ali Youssouf, described the escalating tensions in the Horn of Africa as “a major source of concern,” and suggested that the new arrangement could help to defuse the situation.
Strategic Significance of the Port of Tadjoura
Opened in 2017, the Port of Tadjoura was developed with a $90 million investment by the Djibouti government, with support from the Italian engineering group Technital. Located on the western coast of Djibouti in one of its oldest towns, Tadjoura, the port is strategically positioned to serve as a gateway to the interior regions of Ethiopia. The facility includes two berths, a RoRo (roll-on/roll-off) terminal, and is capable of accommodating vessels up to 65,000 deadweight tons (dwt). The port was designed to handle up to four million tons of potash annually, supported by access to the North Tadjourah-Bahlo corridor highway, providing a vital connection to landlocked Ethiopia.
This offer by Djibouti is seen by many as a strategic move to counterbalance the growing influence of Somaliland, whose Port of Berbera has been rapidly emerging as a competitive maritime hub in the region. Somaliland signed an agreement earlier this year to provide Ethiopia access to 12 miles of its coastline, a move that Djibouti perceives as a direct threat to its own maritime interests. The Port of Berbera recently improved its standing significantly in the World Bank’s Container Port Performance Index for the East and Horn of Africa, jumping to the 106th position from 144th the previous year, while Djibouti’s ranking fell dramatically from 26th to 379th.
The Broader Geopolitical Context
Ethiopia’s desire for greater access to international waters is driven by both economic and political imperatives. While Djibouti has been Ethiopia’s main gateway to the sea, the recent deal with Somaliland indicated Ethiopia’s interest in diversifying its options. Djibouti’s proposal for the Port of Tadjoura is seen as an effort to prevent Ethiopia from shifting its trade flows towards Somaliland, thereby maintaining its dominant role in regional trade.
Port of Tadjoura Offered as Alternative to Somaliland Deal Amid Rising Political Strains
The situation is further complicated by broader geopolitical tensions. Egypt recently signed a security agreement with Somalia and began supplying arms to the country, a development that has raised concerns in the region. This move by Egypt is seen in the context of its ongoing dispute with Ethiopia over the Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile. Egypt fears that the dam, which is set to become Africa’s largest hydroelectric power plant, could significantly reduce the flow of water downstream, posing a severe threat to its water security.
Djibouti’s Strategic Calculations
Djibouti’s decision to offer the Port of Tadjoura reflects its desire to remain a key player in the region’s maritime trade and political dynamics. By providing Ethiopia with an alternative port, Djibouti hopes to maintain its influence over Ethiopia’s trade routes while also mitigating the risk of Ethiopia turning towards Somaliland or other options.
“We are offering 100 percent management for a port in the north, a new corridor that is already built,” Youssouf told the BBC, emphasizing that Djibouti remains a stable and safe option amid growing regional tensions. Djibouti’s offer is aimed at not only retaining Ethiopia’s reliance on Djibouti’s ports but also fostering a more collaborative approach to regional security and economic development.
The offer comes at a critical time, as tensions across the Horn of Africa continue to rise due to geopolitical maneuvering, economic ambitions, and unresolved territorial disputes. By proactively engaging with Ethiopia and providing it with new port access, Djibouti is positioning itself as a central player in efforts to ensure stability and promote economic integration in a region that remains fraught with conflict and uncertainty.
