MoU Inked with Somaliland Provides Multifaceted Economic Benefit: Economists

The Memorandum of Understanding (MoU) that Ethiopia signed with Somaliland to gain access to the sea will bring a multitude of economic benefits, Economists said. Prime Minister Abiy Ahmed and the President of Somaliland Muse Bihe Abdi have signed a historic Memorandum of Understanding (MoU) for Partnership and Cooperation, between Ethiopia and Somaliland in Addis Ababa yesterday. Office of the Prime Minister said the MoU is intended to serve as a framework for the multisectoral partnership between the two sides. According to the signed agreement, which will go into force within a month, Ethiopia will gain port and military base while Somaliland will have shares in the Ethiopian public enterprises. The scholars noted that Ethiopia by gaining access to sea and having its own port will have multifaceted economic and political benefits. Senior Economist Costantinos Berhe told ENA that the signed MoU is a phenomenon that answered Ethiopia's demand to access to the sea. Ethiopia, through having a port that it develops by itself, will have various alternatives in accelerating its import and export trade thereby creating revenue for Somaliland, he added. Costantinos further pointed out that it will also strengthen Ethiopia's positive engagement in the peace and security of the eastern Africa region. The economist urged in pursuing the efforts towards attaining other access to sea in a strengthened manner. Senior Economist and President of African Chamber of Commerce, Kibur Gena said on his part that Prime Minister Abiy's effort in ensuring Ethiopia to gain access to sea is commendable. The signed MoU with Somaliland sparks hope and will enable Ethiopia build additional capacity, Kibur added. Moreover, he added that the underway efforts in exploring other additional access to sea should continue in strengthened manner. Office of the Prime Minister said in a statement on Monday that the signed MoU reaffirms the principled position of the Ethiopian government to advance mutual interests through cooperation on the basis of reciprocity. Source: Ethiopian News Agency