Ethiopian Prime Minister Abiy Ahmed and Somaliland President Muse Bihi Abdi have signed a critical cooperation agreement allowing Ethiopia to lease ownership stakes in the Port of Berbera in Somaliland.
Under the terms of this new deal, landlocked Ethiopia will for the first time hold leasing stakes in the strategic Somaliland port.
Ethiopia currently relies heavily on the port in Djibouti for most of its trade and sees this lease deal as critical for securing alternative access to seaports.
The port access Ethiopia will gain by leasing stakes in Somaliland is expected to be vital for increasing regional trade and spurring massive economic growth in coming years.
Ethiopia has one of the fastest growing economies globally but has faced challenges from lack of seaports.