Background of the Agreement
This represents a strategic transformation in the Horn of Africa, granting Ethiopia an alternative outlet to the sea and consolidating the UAE’s influence in the Red Sea.
Background of the Agreement
- In June 2025, the UAE signed a $3 billion agreement to finance and build a railway line linking Berbera Port in Somaliland directly to Ethiopia.
- The line is estimated to be 250–310 km long, starting from Berbera and extending to the Ethiopian border at Tog Wajale, running parallel to the recently modernized highway.
- The project also connects to Aysha Station in Ethiopia (linked to the Addis–Djibouti railway), creating an integrated network.
Geopolitical Dimensions
- Ethiopia: A landlocked country that relies over 90% on Djibouti’s port. This railway provides a second outlet, reducing dependence on Djibouti.
- UAE: Strengthens its presence in the Horn of Africa and the Red Sea, competing with major projects such as Kenya’s stalled LAPSSET corridor.
- Somaliland: Gains economic and political weight, as Berbera Port becomes a regional trade hub, reinforcing its quest for international recognition.
Economic Dimensions
- Reduced transport costs: The railway will cut both time and expenses for moving goods between Ethiopia and global markets.
- Development stimulus: It will create jobs, increase trade flows, and attract further investment in ports and logistics.
- Regional competition: The project challenges Djibouti’s monopoly and positions Berbera as a strong competitor.
Symbolic and Artistic Reading
This project can be seen as a steel artery connecting the heart of the Ethiopian highlands to the Arabian Sea through Somaliland.
- It is a bridge between isolation and openness, symbolizing Ethiopia’s long-standing dream of reaching the sea.
- It is also a political canvas, showing that infrastructure is not just railways but instruments for reshaping power and alliances.
- The UAE appears here as a strategic architect, sketching with iron lines a new portrait of the Horn of Africa, where trade intersects with politics, and economics with sovereignty.
Wise Conclusion
This project is not merely an economic investment, but a redrawing of the geopolitical map of the region.
- If successful, it will provide Ethiopia with strategic breathing space and elevate Berbera’s status as a regional port.
- Yet it also raises questions about new balances of power: Will neighboring states accept this shift? And can Somaliland leverage this influence to strengthen its international standing?
By: Ali Behi
HADHWANAAG 
