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Somaliland+ Ethiopia + China deal – change in the Horn?

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President Ahmed M. Silanyo and a ministerial delegation enroute to China reached the Ethiopian capital on Monday morning after staying in Dire Dawa over night.

 

The President was received at the airport by representatives from the Ethiopian Ministry of Foreign Affairs. Dr. Mohamed Abdullahi Omar, Somaliland Foreign Affairs Minister, said the visit was a continuation effort to explore new economic relations and bilateral ties with the government of Ethiopia. He added Somaliland and Ethiopia enjoyed close fraternal relations and the current visit would contribute to further strengthen the mutually beneficial cooperation in multiple domains between the two neighboring states.

 

When asked about the unscheduled stop over in Dire Dawa, Dr Omar stated: “Due to mechanical failures with our private jet, we had to wait in Dire Dawa until it was fixed.”

 

President Silanyo is accompanied to China by the Minister of Foreign Affairs, Minister of Mining and Water Resources, Minister of Agriculture, Presidential Secretary, Director of Berbera Seaport and the First Lady.

 

Whilst there is considerable secrecy surrounding the Beijing discussions, there is speculation that the discussion will focus on China’s access to aggregates and various other minerals in the Horn. The Port of Berbera is expected to dominate the agenda as China has expressed its interest in order to thwart a possible Indian investment in Berbera and its vicinity. The issue of Berbera will be first discussed in Addis Ababa, as landlocked Ethiopia tries to gain greater access. It is believed a three-way contract will be signed between Somaliland, Ethiopia and China.

 

Sources close to the government say Somaliland might lease the port to the global port operator and Hong Kong based Hutchison Port Holdings (HPH). They added HPH might team up with another Hong Kong based firm, PetroTrans Company Ltd, an oil and gas exploring giant which already won concession to explore oil in Ethiopia’s ****** region. The Chinese company plans to build gas transport infrastructure and processing facilities in Berbera where it will export.

 

The European Union has also provided funds to carry out a study on the construction of modern roads between Berbera and the town of Togwajale near the Ethiopian border.

 

The Chinese have expressed interest in gaining access to the port which will allow them to export not only gas and oil but also agricultural goods from the region. Ethiopia has already approved 20m hectares of land for commercial farming to capital-exporting countries, a policy that is proving highly controversial as many people in their own country are starving. They will grow staple crops and export them back to their homelands. The Chinese want to operate a port that will handle all these exports.

 

The Chinese have already began constructing a number of key projects in Ethiopia including highways and roads and there are plans to link Berbera, Addis Ababa and Juba in South Sudan.

 

The Hargeisa government mentioned a number of times it wants to establish the first railway line in the country and connect to key networks in the region. It will discuss with the Chinese investors. China has claimed it is in a position to help Somaliland with its transportation infrastructure, food security, education and water needs.

 

In Addis Ababa, the President met with Mr. Hailemariam Desalegn Deputy Prime Minister and Minister of Foreign Affairs of Ethiopia. The two sides discussed bilateral and trade issues as well as regional security. For all apparent cordiality serious tensions remain.

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H.E. Mr. Meles Zenawi, Prime Minister of the Federal Democratic Republic of Ethiopia started his visit to China

 

 

W020110811099661824686.jpgOn 10th August, 2011, at the invitation of the Chinese side, H.E. Mr. Meles Zenawi, Prime Minister of the Federal Democratic Republic of Ethiopia left Addis Ababa for his visit to China from 11th to 15th August, 2011. During the visit he will also attend the opening ceremony of the 26th Summer Universiade to be held on 12th August in Shenzhen, China.

Mr. Wei Hongtian, Charge D’affairs of the Chinese Embassy in Ethiopia saw H.E. Prime Minister Meles Zenawi off at the Bole International Airport upon his departure.

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