Ethiopia will hold 19 percent stake of the Somali port of Berbera, following its signing of an agreement Thursday with Dubai Ports (DP) World and the Somaliland Port Authority.
As the biggest shareholder of the port of Berbera, DP World announced that it would hold 51 percent stake of the project, the Somalis, 30 percent, and Ethiopia, the remaining 19 percent.
The government of Ethiopia will also invest in infrastructure construction to develop the Berbera Corridor, which was located on the Horn of Africa as a trade gateway for the inland country, according to DP World.
DP World also announced plans to construct an additional berth at the port and to add new equipment, in line with a master development plan of Berbera which the company has already started implementing.
The first cranes are scheduled to arrive later this year, the company added.
“Ethiopia is home to approximately 110 million people. The ports of Berbera and Doraleh will provide significant transport capacity to the region,” DP World Chairman and CEO Sultan Ahmed Bin Sulayem said.
Saad Al Shire, Somali minister of foreign affairs and international cooperation, said that the regional economy is growing at a pace that facilitates the development of multiple ports.
“The expansion of the port will increase the capacity of the region to accommodate the increase in trade,” he added.