Imperial Disruptions
The influx of Emirati investments and DP World’s oversized role in carrying out state duties has had a flurry of unintended consequences. In this, it is again exhibiting the disruptive effects of an imperialist endeavor. Since the deal with DP World, the coastal areas of Berbera have witnessed rapid urbanization, with property prices as much as doubling along the waterfront.70 This has sparked a “land rush,” as diaspora capital and wealthy investors from nearby regions have flocked to the region to grab a slice of the pie.71 But some residents are wary, as poorer sections of the community face the possibility of being driven out as land speculation intensifies.
Additionally, the stream of investments into the property may upset the balance of clan-based politics in the region. Despite the passage of national land law in 2001, clan ownership is considered to be the dominant form of property ownership in the country, and land disputes constitute the majority of violent incidents recorded in towns and cities, according to the Hargeisa-based Academy for Peace and Development (APD). In Berbera, the Ise Musa clan has dominated local politics since the 1990s, and changes in landownership may have a significant effect on the balance of forces in the region.
In the free zone at the port, there have been numerous accusations that the government is selling off undeveloped land that was reserved for use by the port. “It is being sold off without clear procedures and guidelines,” and often to those with close government connections, Mohamed Farah, the director of APD, reportedly said.72 Ahmed Hussein Esse, President of Abaarso Tech University in Hargeisa, went so far as to describe the situation as “land grabbing,” adding that there is now almost no public land left in Somaliland. This, however, is only one of the effects of the speculation frenzy following DP World’s contracts and dealings in the area. Land reclamation of coastal areas has entailed “dumping massive sand materials,” putting pressure on the local marine ecosystem, local residential communities, and the small fishing port.73
According to a recent report authored by an environmental consultant in Qatar, “both coastal reclamation and marine dredging, if unmanaged, will lead to subsequent losses of biodiversity, habitats, and ecosystems and potentially pose a threat to lifestyles, cultural heritage, property values, and resources.”74 Given that there is no plan, either by DP World or by the local government, to regulate and manage the effects of coastal urbanization, land reclamation, and marine dredging, it may cost Somaliland “billions of dollars to carry out frequent maintenance works,” potentially undermining its economic stability.75
DP World’s status as a port operator and the biggest private-sector employer has also given rise to controversy. According to the agreement with DP World and the government of Somaliland, DP World has the power to set, amend, levy, collect, and recover tariffs of port users. In fact, DP World is allowed to increase tariffs on a biannual basis in consultation with the government. In March of this year, the port experienced massive delays as local businesses refused to pay increased tariff payments, leaving their goods stranded at the port in an act of protest.76
Rather than addressing the grievances of local businesses, Mohamoud Hassan Saad, a Somaliland minister in charge of investment and commerce, firmly declared his support for DP World’s tax increase and issued a warning to businesses: “they must pay their outstanding dues and pick up the goods or risk paying extra fees on account of the delays.”77
Port workers entered the town chanting slogans: “We want to live, we want to eat. We cannot live with a meager salary.”
DP World’s problems with the local community in Berbera also extend to its own workers. In March 2017, workers demonstrated against wage cuts proposed by DP World, and as a result, 280 workers were laid off.78 Burning DP World flags and defying police orders, port workers entered the town chanting slogans such as, “We want to live, we want to eat. We cannot live with a meager salary.”79 In July 2019, construction workers involved in the expansion of the port also went on strike, citing lowered daily wages. Although workers were promised $30 per day, local firms subcontracted by DP World were allegedly only paying daily wages of $8.80 The laborers also criticized the company for hiring foreign workers, while locals remained idle in the town.
Locals also protested that they did not have the housing and medical provisions that the firm provided to foreign workers.81 Even the head of the Berbera Port Authority, who had worked there for twenty-five years, was dismissed; many of the local truckers were left without jobs following the introduction of new safety standards, and the local workforce was screened, reduced, and disciplined.82 While the new operator has undoubtedly brought some new jobs to the town, according to local journalist Mahmoud Hasan, “if the new deals do not bring the promised prosperity to Berbera, there will be real anger.”83
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