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Berbera Port authority has officially inaugurated Ethiopian transit clearance offices, marking a significant milestone in Ethiopia-Somaliland trade cooperation. This development underscores Ethiopia’s strategic commitment to securing access to international maritime routes, a crucial step for a landlocked country aiming to boost its economic connectivity. By establishing these offices, Ethiopia is signaling its intent to strengthen ties with Somaliland and leverage the Berbera Corridor as a vital gateway for trade and logistics.
Berbera Port’s strategic role:
Facilitates efficient transit
Promotes regional integration
Drives sustainable economic
Aligns with the [AfCFTA] goals
berbera real estate is no small thing but a major money making area for somaliland , land plots should be for sale as the first skyscrapers are made in berbera with urban planning and wide area for beach hotels and large areas for hotels to buy plots , and a metro that goes for a few miles , beach areas are for barbecue and selling meat resturants are important for beach areas , salam tower should have been built on berbera beach with wide area for hotels and shops , the area with urab planning can be transfromed into a toruism destination with new somaliland airlines cheaper tickets can be sold by somaliland airlines to attract tourist such as 198 dollar single jouney from japan as somaliland has oil diesel is cheaper and jet fule is cheaper somaliland airlines could have very cheap flights in areas such as china korea and japan as little as 120 dollars to berbera beach as somaliland has oil jet fule would be cheap berbera beach still needs a skycraper and the first is a mile stone salam towar should have been in berbera
Our investment in port infrastructure is reducing costs for local businesses in Somaliland and improving market access
Port infrastructure is a cornerstone of economic development in Somaliland. It enables trade, improves access to vital goods, and allows businesses to expand. Berbera Port, on the Gulf of Aden, is a strategic gateway for Somaliland and an alternative trade corridor for Ethiopia.
The expansion of Berbera Port is being driven by DP World Berbera, in partnership with the Government of Somaliland. In early 2022, BII joined as a minority investor, supporting the modernisation and expansion of Berbera Port and its surrounding logistics facilities. Our investment is part of the BII-DP World Africa Gateway partnership, which supports the expansion of ports and inland logistics to improve African trade with the rest of the world.
Our latest evaluation, led by Itad and Steward Redqueen, examines how the Port of Berbera’s expansion has helped to strengthen Somaliland’s economy, improve regional trade resilience, and offer Ethiopia a diversified route to global markets.
What can we learn from the evaluation?
Using trade data and interviews, the study examines changes in port capacity and efficiency, shifts in regional trade capacity and market access, and local economic impact. The report’s early-stage findings indicate significant benefits for the local economy and the environment:
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Container throughput capacity has more than tripled, rising from 150,000 to 500,000 twenty-foot equivalent units (TEU). The port now accommodates larger vessels thanks to new quay length, deeper draught waters, and modern cargo handling equipment.
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Operational efficiency has improved significantly. Vessel turnaround times have dropped from 64 hours in 2018 to just 25 hours in 2024.
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These upgrades have positioned Berbera as a viable regional competitor. Container traffic at Berbera Port has increased substantially since the expansion and the share of regional trade handled by the port rose from 9% in 2017 to 14% in 2024.
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The port can now attract cargo deeper into eastern Ethiopia and Somaliland. Modelling shows that the port now offers cost-competitive access to regions that were previously underserved, particularly those beyond the reach of the Addis Ababa–Djibouti railway.
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Transport cost savings for importers and exporters are estimated at $8.4 million in 2024, with net savings of $6.9 million after adjusting for new users.
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These efficiencies are also generating measurable environmental benefits, cutting carbon emissions by an estimated 7,651 tonnes each year.
The economic impact is significant. The upgraded port and the Berbera Economic Zone supported around 2,490 jobs and added $45.1 million to Somaliland’s economy in 2024. Of this, 921 jobs and $16.7 million in value added are directly linked to the expansion, representing an extra 0.4% of Somaliland’s GDP.
The full impact of the expansion is still emerging: its full capacity is not yet needed for handling the current volume of trade, due in part to the Red Sea crisis.
Berbera Port’s expansion demonstrates how port investments in underserved frontier markets can unlock substantial trade and economic benefits. The study highlights the value of partnering with experienced global operators, integrating complementary ecosystem investments (such as the Berbera Economic Zone), and embedding inclusion and diversity into local workforce practices.
While this evaluation provides robust evidence on port capacity, efficiency, and direct economic impacts, it does not assess all possible outcomes due to data and resource limitations. It does not consider the impact on standard of living resulting from cheaper imports, and whether cheaper inputs are benefiting producers based in Somaliland (although it does consider nascent evidence on the impact of the port expansion on exports from Somaliland). It also does not evaluate macroeconomic effects in neighbouring Ethiopia or the impact of general cargo activities in addition to containerised trade. As a result, some benefits of the port’s expansion may not be fully captured here, and its true contribution to GDP is likely to be higher than reflected in the values reported.
