Ethiopia and Somalia are in a dispute over sea access. Somaliland is a self-governing break away region. Somalia sees the leasing of the sea port in Berbera as a means to balkanize the country. The agreement between Ethiopia and Somaliland is a lease for a naval base. The lease will last for 50 years with the purpose of commercial operations. Another part of the agreement is recognition of Somaliland as its own nation. This makes Somalia vexed and also concerned other nations will give Somaliland recognition. The Port of Berbera has been a significant investment for Ethiopia. This is not the first time Somaliland engaged in economic agreements without Mogadishu. The United Arab Emirates has also invested in the Berbera Port. Ethiopia will have access to Red Sea and the Suez Canal. The opportunity to expand trade with Europe could help Ethiopia. Somalia if it loses Somaliland will suffer economically. If Somalia was unified, it could benefit from its sea access. The concern is that Mogadishu could send troops to forcibly take Somaliland back. Ethiopia has fought the TPLF and has been involved in African Union missions in Somalia. Economics are going to be a source of tension between Ethiopia and Somalia. Ethiopia needs to approach the situation with caution. There is a fragile peace with Eritrea, internal tension with the Tigray, and disputes with Egypt over the Nile River. If there is going to be economic growth and development it needs to include the entire Horn of Africa. Ethiopia should not make agreements with de-facto states or disputed territories. Recognizing self-governing break away regions does undermine Somalia's national sovereignty. Doing this might get Ethiopia fast sea access, but creates an enemy. Djibouti must be a mediator in the dispute between Ethiopia, Somalia, and the status of Somaliland.
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