Djibouti says Ethiopia rejected a 60% stake in Tadjoura port, instead demanding a corridor deal. The move signals Addis Ababa’s push for greater control over sea access in the Horn of Africa
Djibouti City — Djibouti has revealed that Ethiopia declined an offer to take a controlling stake in one of its strategic Red Sea ports, opting instead to pursue a broader corridor arrangement that would guarantee more direct and secure access to maritime trade routes.
Officials from the Djibouti Ports and Free Zones Authority said the government had proposed granting Ethiopia a 60 percent share in the Port of Tadjoura — a facility positioned to handle cargo from Ethiopia’s northern regions. But the offer was rejected.
“We are clear and transparent—our offer was a 60 percent share in Tadjoura,” said Aboubakar Omar Hadi, chairman of the authority, during a press briefing. “The Ethiopian government declined the proposal, seeking a corridor on top of the equity stake.”
The decision underscores a significant shift in Ethiopia’s long-standing strategy to secure access to the sea, reflecting a preference for sovereign transit arrangements over traditional port partnerships.
A Strategic Calculation
For decades, Ethiopia — Africa’s most populous landlocked nation — has relied heavily on Djibouti’s ports to handle the vast majority of its imports and exports. Since losing direct access to the Red Sea following Eritrea’s independence in the early 1990s, Addis Ababa has pursued multiple avenues to diversify its maritime access.
Djibouti’s offer of majority ownership in Tadjoura represented one of the most substantial proposals to date. But analysts say Ethiopia’s rejection signals deeper strategic ambitions.
“Partial ownership alone is not enough,” said one regional analyst familiar with the negotiations. “Ethiopia is looking for guaranteed, long-term access that includes dedicated transport corridors — not just a stake in infrastructure.”
Officials in Djibouti confirmed that Ethiopia insisted on a corridor arrangement — potentially involving special transit rights or administrative control — alongside any equity participation.
Regional Implications
The development comes amid heightened geopolitical maneuvering across the Horn of Africa, where access to ports and trade routes has become a central strategic concern.
On Jan. 1, 2024, Ethiopia signed a historical memorandum of understanding with Somaliland, seeking access to a port along the Gulf of Aden in exchange for a stake in state-owned enterprises. The agreement drew strong reactions across the region and intensified competition over maritime access.
Djibouti’s offer was widely viewed as a counterproposal aimed at retaining Ethiopia’s trade flows within its own port system.
Despite the setback, Hadi emphasized that Djibouti remains open to cooperation.
“We are working well with the government and offering them all the facilities they need to use our ports,” he said. “We are very open to Ethiopia.”
Rising Traffic, Expanding Capacity
Djibouti continues to play a central role in regional logistics, particularly as instability in the Red Sea and Gulf region has redirected shipping traffic away from other hubs.
In October 2025, Djibouti signed a 30-year concession agreement with Red Sea Gateway Terminal International to operate key port facilities, further expanding its capacity.
Hadi said the country’s infrastructure is equipped to handle increased demand.
“We have around six deep-sea ports, so we do not expect congestion,” he said, adding that any inland transport challenges could be mitigated through transshipment operations.
He also confirmed that Ethiopian cargo — particularly essential goods such as fertilizer — would continue to receive priority handling.
Security and Stability
Addressing concerns about regional security, Hadi downplayed risks linked to tensions in the Red Sea, noting that Djibouti’s ports are located south of the strategic Bab el-Mandeb Strait.
Djibouti also hosts a major U.S. military base, reinforcing its position as a secure logistics hub in a volatile region.
Meanwhile, the ports authority has taken steps to stabilize costs for shipping operators. In March, it issued a directive prohibiting additional surcharges on cargo loaded before the onset of recent regional disruptions, warning that violations would face administrative penalties.
A Broader Strategy Unfolds
Ethiopia’s rejection of Djibouti’s offer highlights a broader recalibration of its economic and geopolitical priorities.
Rather than accepting equity in existing port infrastructure, Addis Ababa appears determined to secure more comprehensive arrangements that ensure long-term autonomy and resilience in its trade routes.
The move reflects what one official described as “a preference for control over convenience” — even if it complicates negotiations in an already competitive regional landscape.
