Somaliland

country brief

Country Context &
Overview.

Over the last 25 years, Somaliland has established its stability in The Horn of Africa making its key port of Berbera and its road corridor into Ethiopia, attractive to external investors. Since 2016, Somaliland has received three major investments in transport and trade infrastructure, from Dubai Ports World (DPW), the Abu Dhabi Fund for Development (ADFD) and from TMA, respectively. The investments are worth $564m, an unprecedented level of infrastructure investment in Somaliland. DPW has committed to invest $442m in three phases, including a new 400m-container berth at the Port already under construction. ADFD is investing US$90m to upgrade the road from Berbera Port to Somaliland’s border with Ethiopia at Tog Wajaale. TMA meanwhile received $33m in July 2019 from the UK’s Partnership Fund, with FCDO as lead department for the project. The programme is financing inter alia a road by-pass around Hargeisa, capital city of Somaliland. Berbera Port in Somaliland is a gateway to the Berbera Corridor, which provides access to sea for landlocked countries like Ethiopia. Berbera Corridor has the potential to economically transform Somaliland if operations along it are optimised.

Strategy 2 Implementation in Somaliland

Program Component

Improved efficiency and capacity of transport and logistics networks
Reduced non-tariff barriers
Developing standards

OUTCOME 1: REDUCING BARRIERS TO TRADE

Improved efficiency and capacity of transport and logistics networks

DETAILS

Construction of 22.5 KM section of Hargeisa Bypass (HBP) to a dual carriage way.	Completion of the road will aid smoother flow of traffic and movement of cargo trucks around and through Hargeisa city. Works include mapping of heritage sites along the road to ensure that they are conserved and preserved.

Reduced non-tariff barriers

DETAILS

Elimination of NTBs	Establishment of public-private dialogue mechanisms on key trade corridors between Somaliland and Ethiopia

Developing standards

DETAILS

Partnership with Somaliland Quality Control Commission (SQCC), the national standards agency, test import and export goods, and conduct training.	With support from TMA, 5-year strategic plan launched and working with Ethiopia National Quality Infrastructure to harmonise standards of commonly traded goods between the two countries, especially at their common border of Tog Wajaale, and build its capacity in the area.
Raising awareness of product standards	With TMA’s facilitation, SQCC developed 16 standards which were launched in August 2021. The 16 standards are among the first for Somaliland. They cover the following sectors: Oils Seeds, Edible Fats and Oils, Cereals, and pulses; Livestock and livestock products; and beverages. Awareness creation and training to stakeholders ongoing for uptake and adoption.
Strengthening standards/equipment and testing laboratories;	To enhance testing capacity, TMA supported the procurement SQCC’s new laboratory equipment worth $600,000

Highlights of TMA Somaliland
Programmes

Program Component

Strengthening local inclusive economic development

OUTCOME 2: IMPROVED BUSINESS COMPETITIVENESS

Strengthening local inclusive economic development

DETAILS

Supporting local and international businesses to benefit from the trade and investment opportunities the corridor presents	Specific focus on inclusion and generating growth that is beneficial to MSMEs, women and youth, as well as strengthening commercial linkages with UK businesses. A modern safe trade market at Tog-Wajaale border was constructed for women and is already home to 200 traders.