ADDIS ABABA- Ethiopia receives limited coverage in US media despite Ethiopian Airlines (ET), a Star Alliance member, being involved in one of the fatal Boeing 737 MAX crashes that led to the aircraft’s grounding for two years.
Notably, incidents such as a co-pilot hijacking a flight in 2014 and ground staff in Houston causing delays to an Ethiopian flight for ticket scalping purposes have occurred.
Somaliland Buys Ethiopian Airlines Stake
Surprisingly, both the airline and the country maintain a relatively positive reputation in the U.S. Ethiopian Airlines is even considering the addition of a new U.S. destination, with contenders including Denver, Houston, Minneapolis, Seattle, and Montreal.
Simultaneously, Ethiopia is grappling with a civil war marked by drone strikes targeting civilians in the Amhara region and engaging in conflict with rebels.
Despite concerns about “collective punishment,” there is a lack of protests calling for a cease-fire. Since 2019, hundreds of thousands have lost their lives, and millions have become refugees.
The Tigray region is confronting a crisis reminiscent of the famine in 1984-85 that prompted the global fundraising event Live Aid. Strikingly, unlike that time, Ethiopia’s current situation isn’t capturing widespread attention.
The nation of Ethiopia has entered into an agreement with Somaliland, granting access to the Red Sea in exchange for an equity stake in Ethiopian Airlines. This development, unexpected at the beginning of 2024, follows belligerent threats made by Ethiopia in the fall to reinforce their negotiations.
What’s in the Deal?
According to the Memorandum of Understanding (MoU), Ethiopia will lease access to the Red Sea from Somaliland for both military and commercial purposes for a duration of 50 years. This arrangement also allows Ethiopia to construct infrastructure and a corridor.
Hussein shared these details during a briefing held on Monday in the capital, Addis Ababa, attended by Somaliland President Muse Bihi Abdi.
Since losing direct access to the sea in 1993, when Eritrea gained independence after a three-decade war, Ethiopia has relied on alternative trade routes, primarily roads and a railway connecting Addis Ababa to a port in Djibouti. Djibouti is one of Ethiopia’s five neighbors with coastlines, including Somalia, Eritrea, Sudan, and Kenya.
The significance of this agreement extends beyond the transaction itself, given that merely entering into a deal with Somaliland holds significance. Notably, Somaliland, though recognized by very few nations, including Taiwan, plays a noteworthy role in this context.
Things Getting Better
In 2007, economist Peter Leeson analyzed data from Somalia, revealing that the collapse of the government had, surprisingly, improved conditions for the people. While still not ideal, the situation was comparatively better than under the previous corrupt administration, highlighting that anarchy isn’t always worse than government.
Presently, there are two distinct entities in the region – the internationally recognized Federal Republic of Somalia, grappling with massive instability, and the self-declared Republic of Somaliland, which operates independently and lacks international recognition.
Remarkably, Somaliland has successfully established functioning institutions, ensured security, and improved economic conditions.
Somalia remains a complex geopolitical scenario, with the government struggling to exert authority beyond Mogadishu and contend with militant groups and organized crime. Notably, in the Horn of Africa, Somaliland stands out as the most stable area despite its lack of international recognition as an independent state.
However, Hargeisa, the capital of Somaliland, faced considerable challenges in 2023 due to an election dispute, leading to clashes between security forces and protestors. It is worth mentioning that a resolution was eventually reached between the government and the opposition to alleviate tensions.
While Ethiopia has not officially acknowledged Somaliland, the two entities maintain positive overall relations. Achieving an agreement with Somaliland that involves exchanging a stake in its national carrier represents a noteworthy milestone.
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