The article “Rising Tensions as Djibouti Faces Economic Strain, Somaliland Stands Firm” discusses the growing economic and security challenges faced by Djibouti, as its financial troubles worsen and competition rises from Somaliland, particularly with the development of Berbera port.
Djibouti’s reliance on its port and trade with Ethiopia has led to a significant increase in its external debt, raising concerns about sustainability. Instead of adapting to this competition, Djibouti appears to be adopting a more aggressive stance, opposing agreements between Somaliland and Ethiopia, forming a military alliance with Turkey, and potentially destabilizing Somaliland.
Somaliland, while faced with these provocations, remains committed to defending its territory and sovereignty. The article suggests that Djibouti should consider diplomatic solutions to its issues, and calls on the international community to help maintain stability in the region and recognize Somaliland’s right to economic independence.
The full article reads as follows:
Rising Tensions as Djibouti Faces Economic Strain, Somaliland Stands Firm
By Badri Jimale
The Djibouti regime is facing increasing challenges, with economic pressures mounting and a growing sense of insecurity taking hold.
The rise of Berbera port in Somaliland as a significant competitor has highlighted the vulnerabilities in Djibouti’s economic model, which has heavily relied on its port sector and Ethiopian trade.
Djibouti’s external public debt has surged from 33.9 percent of GDP in 2013 to 68 percent in 2022, driven largely by loan-financed investments in state-owned enterprises, including the port and railway sectors.
The World Bank has expressed concerns about the sustainability of this approach, particularly as Berbera Port emerges as a formidable competitor.
Rather than adapting to this new competitive landscape, Djibouti appears to be taking a more confrontational path.
The country has opposed the Memorandum of Understanding between Somaliland and Ethiopia, signed a military pact with Turkey, and allegedly recruited militias to destabilize Somaliland.
Reports from within Djibouti suggest that the regime may even be planning false flag operations to justify military action against western Somaliland.
Somaliland, for its part, has shown restraint in the face of these provocations but remains resolute in its commitment to defending its sovereignty and territorial integrity. The people of Somaliland are prepared to resist any aggression with determination.
Djibouti’s leadership would be wise to reconsider its approach and pursue diplomatic solutions to its economic and security issues. The international community also has a role to play in preventing regional instability and supporting Somaliland’s right to economic independence.
