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President of Somaliland Dismisses US Concerns Over Ethiopia-Somaliland MoU as “Baseless”

In an interview with the Financial Times, the President of the Republic of Somaliland, Muse Bihi Abdi has dismissed concerns raised by the United States regarding the recent memorandum of understanding (MoU) between Somaliland and Ethiopia. The agreement, which involves leasing a strip of land near the Red Sea to Ethiopia, aims to enhance security and navigation freedom in the Gulf of Aden and the Red Sea, areas recently plagued by attacks from Houthi rebels.

The Memorandum of Understanding, signed in January, exchanges access to territory on the Gulf of Aden for formal recognition from landlocked Ethiopia. President Bihi Abdi emphasized that the accord would support international efforts to secure these vital waterways.

“Ethiopia will build a naval military base and operate commercial ships, and in exchange, Ethiopia will give us recognition,” Bihi Abdi explained, highlighting the strategic benefits for both parties.

Despite strong opposition from Somalia, which claims sovereignty over Somaliland, President Bihi Abdi views the agreement as a crucial step towards achieving full independence and international recognition for Somaliland. He believes that the MoU with Ethiopia will provide a clear pathway to global acknowledgment of Somaliland’s status.

The deal has sparked concerns from international entities, including the US, EU, and the Arab League, who fear it could escalate regional conflicts. However, a senior Ethiopian official involved in the negotiations expressed optimism about reaching a final agreement, citing realpolitik and necessity.

Despite the headwinds, both Somaliland and Ethiopia view the agreement as a geopolitical necessity, according to the Financial Times report. For the landlocked Ethiopians, it presents an opportunity to gain coveted sea access independent of current dependence on Djibouti following Eritrea’s 1993 secession. A senior Ethiopian official involved in the talks expressed optimism a final deal would be reached to the FT, calling it “a matter of realpolitik and necessity.”

Somaliland has attracted significant investment from Dubai-based DP World into Berbera and its economic zone, aiming to transform it into a regional trade hub. The UAE, which controls Berbera’s airport and is establishing a naval base, has been a key player in these developments.

Somaliland's main port in Berbera.

Despite the potential for increased investment and economic growth, the MoU has faced domestic opposition, including from Somaliland’s defense minister, who resigned in protest. However, Bihi Abdi insists that the people of Somaliland support the deal, which he argues could help prevent potential conflicts in the region by addressing Ethiopia’s need for sea access.

In response to Washington’s concerns that the agreement threatens to disrupt the fight against Islamist militancy, Bihi Abdi dismissed such claims as “baseless” and reaffirmed Somaliland’s commitment to securing stability and fostering international cooperation.

President Bihi Abdi, a former Somali military pilot turned rebel fighter who is standing for re-election in November, remains steadfast in his pursuit of international recognition for Somaliland. “We’ve been working towards international recognition of our independent status for over 33 years,” Bihi Abdi stated. “We’re ready.”

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