Country: Somaliland

Dubai’s DP World and the Government of Somaliland have inaugurated this week the first phase of the new Berbera Economic Zone (BEZ) located next to Port of Berbera where a container terminal opened in June 2021. The BEZ is located along the Berbera Corridor that connects Ethiopia’s capital Addis Ababa and has access to a rapidly growing region with a population of over 140 million people. Its initial phase notably offers 10,000 square metres of pre-built warehouses, build-to-suit facilities, open yard storage, and a common user warehouse. “DP World has already signed an agreement with IFFCO, a major UAE-based food company, to develop a 300,000 square feet edible oil packing plant in the BEZ and a dozen more companies operating across various sectors have already registered,” DP World said in a statement. The event was also attended by British International Investment (BII), which partnered with DP World in 2021 to invest $1bn into the African ports of Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). The United Arab Emirates has become a significant investor into Somaliland’s infrastructure. At the end of 2021, Dubai-based Transport Infrastructure Services Limited (TISL) notably completed the renovation of the Berbera International Airport.

The UK’s development finance institution and impact investor CDC Group (CDC) is partnering with DP World of the UAE to invest into Africa’s trade and logistics infrastructure. The long-term partnership will see DP World investing a further $1bn into existing ports in Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). On its side, CDC is initially committing approximately $320 million and expects to invest a further $400 million over the next several years. The additional investment into Berbera aims to turn the port into a regional trading hub boosting economic growth in Somaliland and supporting the growth of Ethiopia by offering an alternative export and import route for the country. In West Africa, the expansion of the Dakar port will be adding capacity as other ports are increasingly being stretched and unable to serve the hinterland. “The port expansion will support trade with landlocked Mali and help Senegal become a hub of economic activity for the region,” CDC explained. The partnership is expected to create 138,000 jobs by investing in origin and destination ports, inland container depots, economic zones and broader logistics infrastructure.