Charting a stronger course for African trade with the rest of the world

The expansion of the Port of Berbera will multiply its capacity and improve surrounding logistics facilities to create a regional trading hub. This will provide a vital economic boost to Somaliland and support development in the broader Horn of Africa region. This will help drive much needed development for some of the most vulnerable in Somaliland and support the continuing growth of Ethiopia, which will have a positive knock-on effect on the whole region.

In Somaliland, the port is a cornerstone of the economy and by 2035 is expected to facilitate trade equivalent to nearly 27 per cent of GDP and 75 per cent of total trade, supporting indirectly 53,000 jobs in Somaliland. This will enable additional trade equivalent to 6 per cent of GDP by 2035. A variety of sectors is expected to benefit from the port expansion, including exporters of livestock, agricultural and perishable goods, textiles and construction materials.

In addition, trade enabled by the port will increase the availability and affordability of goods for over a quarter of the Somaliland population, with the greatest benefit felt by people who are dependent on imported staple food items.

Millions of people who live in the wider region will enjoy similar benefits.

In Ethiopia, Berbera port is expected to enable trade equivalent to 8 per cent of GDP and 32 per cent of national trade by 2035. This will support 1.2 million jobs in the economy – where 60,000 of these employment opportunities will be created through the port expansion – and increase access to vital goods and staples for 10 million people in Ethiopia.

Berbera port also plays a key role in enabling humanitarian aid to enter the region, reaching close to 2 million refugees and internally displaced populations.

As the first major foreign direct investment (FDI) and first non-mineral international concession known in Somaliland, CDC’s investment will help demonstrate investability and serve as a catalyst for further private sector FDI in the region. The partnership will also invest in a number of associated logistics projects that will further bolster trade capacity, including the Special Economic Zone outside the town of Berbera.

This project forms part of our partnership with DP World to strengthen economic development across the African continent by investing in improving and expanding ports  – you can find out more about the partnership here.