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The article discusses Somaliland’s strategic energy policy, emphasizing its efforts to balance immediate energy needs with long-term developmental aspirations. Somaliland is establishing itself as a sovereign entity on the international stage by entering agreements with other nations, showcasing its internal independence. The country is attracting investment due to its strategic location and potential energy resources, particularly through its partnership with Taiwan.

A significant milestone in this relationship is the 2022 agreement between Taiwan and Somaliland that aims to foster cooperation in energy exploration and development. Mohamed Osman Saeed, a key figure in Somaliland’s energy sector, highlights that this partnership is centered around diversifying energy sources, enhancing energy supply stability, and promoting economic growth through job creation.

Despite the potential benefits, Somaliland faces challenges, such as heavy reliance on imported diesel and the high costs associated with foreign currency usage. To mitigate these issues, the country aims to strengthen collaborations with international stakeholders, including the US and UAE, to improve resource management and attract investments. The US, under the Trump administration, appears to view Somaliland as a viable partner for energy investments due to its stable environment and strong institutional framework.

The country’s engagement with the UAE also aims to enhance investment in various sectors, including energy. As Somaliland works to develop its energy infrastructure, it seeks a collaborative approach that could lead to significant outcomes in both energy production and diplomatic relations. Overall, Somaliland’s energy policy is characterized by a proactive stance aimed at achieving both current needs and future sustainability.

The complete piece is as follows:

Somaliland’s Strategic Approach to Energy Policy, Balancing Needs With AspirationsSomaliland’s Strategic Approach to Energy Policy: Balancing Needs With Aspirations

By Michele Maresca

Energy is one of the main areas where Somaliland is proving to be both a sovereign and a strategic country in the international area.

On the one hand, it is in fact exercising its right to enter into agreements with other states, thus demonstrating its meeting of internal independence.

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On the other hand, as Somaliland’s strategic location presents significant investment opportunities, like-minded countries are eager to invest in the exploration and drilling of energy and mineral resources.

A case in point that illustrates this scenario is given by the strong relationship with Taiwan that has led to the 2022 agreement, signed by Taiwan’s Minister of Economic Affairs and Somaliland’s Minister of Energy and Minerals, which establishes a legal framework for cooperation in exploration and drilling activities.

To better understand the main factors behind Hargeisa’s policy in the energy sector, as well as the common interests and purposes stemming from its partnership with Taipei, I had the pleasure to talk to Mohamed Osman Saeed, the former Director General of the Ministry of Energy and Minerals of the Republic of Somaliland.

Somaliland-Taiwan energy relations: a brilliant example of Hargeisa’s proactive approach

As regards Hargeisa’s energy cooperation with Taiwan, Saeed made reference to several objectives that illustrate the country’s proactive approach to energy policy.

Somaliland, in that sense, is looking for enhanced cooperation, which can lead to economic, energy, and ultimately development goals.

First of all, as the Republic of Somaliland prioritizes a stable and reliable energy supply, it regards Taiwan as an important partner to cooperate with for diversifying energy sources. Taipei’s expertise, in this regard, can prove beneficial in terms of Hargeisa’s efforts towards building a strong wind and solar energy industry.

This partnership can also lay the foundations for “economic growth objectives,” such as stimulating economic development, creating jobs, and elevating living standards in Somaliland, as Saeed told me.

Somaliland’s balancing approach to energy policy is evidenced by Hargeisa’s taking benefit from its relationship with Taiwan to modernize its energy sector, further illustrating the necessity to bring together immediate needs with long-term desires for development.

As the two countries look forward to advancing their strategic interests in the energy sector, the 2022 agreement signed by the respective Ministers stands as a stepping stone to greater outcomes.

In this scenario, Saeed pointed out that a joint-work was formed to facilitate cooperation between the two sides in view of the first exploration well, which is to be drilled by the end of 2025.

By showing their willingness to implement the agreement signed three years ago, the parties are further underscoring their understanding of the mutual benefits arising from it: Somaliland is looking for enhanced resources management capabilities, whereas Taiwan is determined to invest in the energy sector so as to diversify its energy supplies.

However, Somaliland’s vision to achieve a resilient and sustainable energy infrastructure is currently challenged by two specific factors, as Saeed told me: heavy reliance on imported diesel from the GCC countries and the negative effects on the economy given by the expensive foreign currency use.

Achieving a “reduced dependence on costly imports” and enhancing “energy efficiency” are the main reasons behind Somaliland’s decision to fostering strong and productive relationships with regional and international stakeholders.

The US and the UAE can play a significant role in advancing Somaliland’s strategic interests

Within this regard, Saeed stressed the potential role the US can play out under the Trump administration in terms of involvement in Somaliland’s energy and mineral sectors.

The new government of the United States is in fact placing strategic importance to the Somaliland file, showing its willingness to engage in a more effective way with the Horn of Africa State.

When it comes to energy, as well as other potential sources of investments, the US willingness to engage with international stakeholders is grounded on a basic premise: is the State’s environment feasible for durable and productive investments?

Given Somaliland’s relatively safe environment, evidenced by its strong institutions and peaceful transition of power, the United States could regard it as a potential partner to cooperate within the energy file. This would certainly help Hargeisa building local capacity through training programs and knowledge sharing.

A case in point that illustrates Somaliland’s willingness to engage with international stakeholders as regards the energy sector is Hargeisa’s relationship with the UAE.

As the Ministry of Foreign Affairs stated after Abdullahi Irro’s visit to Abu Dhabi, the first since he was elected President of the Republic of Somaliland, the “delegation reached key agreements and protocols of understanding aimed at enhancing investment opportunities in vital sectors such as livestock, agriculture, minerals, energy, and infrastructure.”

Given Trump’s excellent relations with the UAE rulers, it wouldn’t be surprising to have US involvement in joint investments in Somaliland’s energy and mineral resources.

As Hargeisa aims to accelerate sector developments and attract more investments, it is in fact willing to engage with international partners through a collaborative approach in sight of finalizing production-sharing agreements, Saeed told me.

Bipartisan support to fostering a productive relationship with the UAE based on mutual benefit is the key to understanding how the situation may unfold. Likewise Kulmiye, Waddani is eager to attract investments that could prove beneficial as to attain significant long-term goals both in the energy and diplomatic realms.

Expanding its partnership with a key GCC partner could, in fact, not only lead to important outcomes within the energy file but also to enhance cooperation based on a common understanding of sensitive topics.

In this regard, as the US is expected to consider recognizing Somaliland during Trump’s term, the UAE could play a significant role in help bring Washington closer to Hargeisa while advancing its own strategic agenda.


About the Author

Michele MarescaMichele Maresca, Born in 1998, I obtained a Master’s Degree in Law at the Federico II University of Naples and a Master’s Degree in “Derecho Internacional y Relaciones Exteriores e Internacionales” at the Instituto Europeo Campus Stellae. The idea of ​​telling, informing, and investigating international political events is what drives me to dedicate myself with passion and enormous interest to these issues. In addition, I carry out analysis, in Spanish, for the Think Tank Geopol21. He can be reached at X (formerly Twitter) @MMaresca98


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