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Enhancing security cooperation, promoting cultural exchanges, and demonstrating adaptive leadership by embracing transparency and accountability in decision-making are vital steps toward the successful execution of the MoU between Ethiopia and Somaliland

By Adam Daud Ahmed

The Memorandum of Understanding (MoU) between Ethiopia and Somaliland represents a critical opportunity for both nations to enhance economic growth, strategic cooperation, and diplomatic relations. This agreement, under the leadership of Prime Minister Abiy Ahmed, could mark a transformative phase in the Horn of Africa’s geopolitical landscape.

At its core, the MoU facilitates expanded trade and investment between the two nations, using strategic assets like the Berbera Port to streamline import-export activities. This collaboration is aimed at reducing transportation costs and enhancing logistics efficiency, which is expected to greatly benefit Ethiopian businesses that are reliant on international trade.

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The agreement also includes a plan for collaborative infrastructure projects, such as road and rail networks, which are set to strengthen regional economic integration and connectivity. Improved infrastructure is not just about the movement of goods and people; it’s a catalyst for broader economic growth, drawing investments, and facilitating more robust trade flows.

Beyond economics, the strategic importance of the MoU cannot be overstated. It includes a commitment to enhanced security collaboration, with joint efforts in counter-terrorism, border security, and intelligence sharing. Such cooperation is essential for mitigating common threats in the Horn of Africa, fostering stability that is crucial for sustainable development and peacebuilding.

For Ethiopia, partnering with Somaliland reinforces its geopolitical position in the Red Sea region. Through constructive engagement and regional partnerships, Ethiopia seeks to counterbalance the influence of other regional powers, safeguarding its strategic interests along critical maritime routes.

For Somaliland, the MoU is a significant step towards gaining international recognition as an independent state. Aligning with Ethiopia, a major player in the region, not only boosts Somaliland’s diplomatic legitimacy but also enhances its visibility on the global stage. This partnership showcases Somaliland’s capacity to engage constructively in regional initiatives, thereby strengthening its diplomatic presence.

Enhancing Cooperation, The Ethiopia Somaliland MoU
Somaliland President Muse Bihi Abdi and Ethiopia’s Prime Minister Abiy Ahmed met in Addis Ababa, Ethiopia, on February 20, 2019. X photo

The agreement sets the stage for broader regional cooperation, extending beyond security and economic spheres. Through collaborative efforts in education, healthcare, and cultural exchanges, the MoU promotes mutual understanding and solidarity among the nations of the Horn of Africa, paving the way for sustainable development and regional integration.

However, the implementation of the MoU presents several challenges that need to be addressed through strategic solutions. Establishing clear timelines and milestones for project execution is crucial. Regular progress reviews and necessary adjustments can ensure that commitments are met promptly and efficiently. Defining precise legal responsibilities and creating robust mechanisms for resolving disputes is equally important to minimize ambiguities and potential delays. This clarity is essential for maintaining mutual trust and adherence to the agreed-upon objectives.

The political and diplomatic landscape in both Ethiopia and Somaliland also demands consistent engagement and commitment, especially through political transitions. Building consensus among stakeholders and managing diplomatic relations with neighboring countries are critical to mitigating potential disruptions and ensuring continuity in bilateral cooperation.

Furthermore, economic viability is a pressing concern; diversifying funding sources and exploring innovative financing mechanisms are essential for securing sustainable funding for MoU projects. Continual economic monitoring and adaptation to financial conditions will help maintain momentum and ensure long-term project sustainability. Implementing robust monitoring and evaluation frameworks will enable effective tracking of project progress, facilitating timely identification of challenges and adjustments to keep the implementation on track and achieve the desired outcomes.

Prime Minister Abiy Ahmed’s leadership style poses inherent risks to the successful implementation of the Ethiopia-Somaliland MoU. His history of inconsistencies and abrupt policy shifts raises concerns about Ethiopia’s steadfast commitment to honoring the agreement. This unpredictability may cause international partners and investors to hesitate in fully engaging, given the uncertainty surrounding Ethiopia’s reliability.

Enhancing Cooperation, The Ethiopia Somaliland MoU
Somaliland President Muse Bihi Abdi and Ethiopia’s Prime Minister Abiy Ahmed are signing the Memorandum of Understanding agreement in Addis Ababa, Ethiopia, on January 1, 2024. X photo

The Prime Minister’s tendency to make unilateral decisions without comprehensive stakeholder consultation risks undermining the collaborative spirit of the MoU. Actions that contradict the provisions of the agreement could strain relations with Somaliland, potentially compromising trust and cooperation. Furthermore, Abiy Ahmed’s leadership approach, characterized by deflecting accountability, creates an unpredictable environment for sustained diplomatic agreements. This poses significant challenges to the effective implementation of the MoU, potentially hindering Ethiopia’s ability to meet its obligations and uphold trust with Somaliland.

His prioritization of personal ambitions over long-term strategic partnerships may also strain relations, risking neglect of the economic, strategic, and diplomatic benefits intended for both Ethiopia and Somaliland. Such an approach could impede collaborative efforts, further complicating the implementation of the MoU.

To ensure successful implementation, Ethiopia and Somaliland must prioritize several key strategies. Establishing clear timelines and milestones for each project is essential, as is the strengthening of legal frameworks to ensure robust agreements and mechanisms for dispute resolution. Maintaining political engagement and sustaining high-level diplomatic dialogue will be critical to navigating the challenges and capitalizing on the opportunities presented by the MoU. Ensuring economic viability through diversified funding sources and continuous monitoring of economic conditions will help maintain momentum.

Moreover, enhancing security cooperation, promoting cultural exchanges, and demonstrating adaptive leadership by embracing transparency and accountability in decision-making are vital steps toward the successful execution of the agreement.

The Ethiopia-Somaliland MoU presents a significant opportunity for economic growth, security cooperation, and diplomatic relations in the Horn of Africa. The successful implementation of this agreement requires proactive management of challenges, strategic foresight, and a commitment to mutual goals. By overcoming obstacles, fostering trust, and sustaining collaborative efforts, both nations can maximize the benefits of their partnership, promoting stability and prosperity in the region.

Adam Daud Ahmed is a political and security analyst in the Horn of Africa region.