Djibouti has agreed to Ethiopia’s proposal to acquire a share of its port, a deal secured by Ethiopian Prime Minister Abiy Ahmed on his first foreign visit as Head of State over the weekend.
Mr Abiy held talks with the host President Ismail Omar Guelleh and also addressed the Djibouti parliament.
Ethiopian government spokesman, Ahmed Shide, said the percentage apportioned was yet to be determined by experts after assessing the value and profit margins of the port.
Formal agreements will be signed within two months, and experts from both countries have been tasked to do the paperwork, according to Mr Ahmed.
Ethiopia also agreed to apportion to Djibouti shares in its major firms of their choice, including Ethiopian Airlines. Djibouti also showed an interest in agricultural activities in Ethiopia.
The tiny Horn country has previously been allowed to pump 200 metric cubes of drinking water daily from Ethiopia’s Somali region.
More than 95 percent of Ethiopia’s import and export trade passes through Djibouti’s Port.
Apart from Djibouti, Ethiopia also uses Port Sudan and Port Berbera for its import and export activities.
Ethiopia and Djibouti are connected by a railway line, and a Liquefied Natural Gas (LNG) pipeline project was underway to export gas from the Somali region.
