Category Archives: Somaliland

Ethiopia-Somaliland deal: A pivotal move for sea access and regional relations

The International Monetary Fund predicts a ‘soft landing’ scenario in 2024 for the global economy.

The Fund’s spokesperson however warned that leaders should be preparing for future shocks and challenges.

Julie Kozack spoke to journalists on Thursday from Washington DC.

“We’ve had a relatively resilient global economy so far. We expect that resilience to continue into 2024,” Kozack said.

“At the same time, inflation is coming down. Labor markets continue to be, uh, resilient. Of course, the news is not all good because this resilience with growth, um, around hovering around 3 percent both last year and over the expected over the medium-term, that’s much lower than previous global average growth rates, which were about 3.8 percent. So we do have work to do to lift global growth, especially over the medium term.”

Africa is projected to be the second-fastest-growing economic region in the world.

The Fund’s executive board has completed the third review of Mozambique’s three-year loan program, allowing for an immediate disbursement to Maputo of about $60.7 million.

The fund’s executives met with representatives of Egypt to discuss reforms as the war rages in Gaza, on Egypt’s eastern border.

“Our team is in discussions with the authorities on a set of policies that would support completion of the first and second reviews of the EFF that Egypt has with the Fund. This strong engagement that we’ve had with the authorities has helped achieve important progress in the discussions, and we do expect those discussions to continue in the coming weeks to operationalize the key policy priorities,” Kozack revealed.

The Fund will update its global growth forecast and unveil the World Economic Outlook report in Johannesburg on January 30.

Additional sources • IMF – Mail & Guardian

Source: AfricaNews, 12th January 2024


Somaliland port pact puts moribund Lapsset in the spotlight

Workers at work at the new Lamu Port-South Sudan Ethiopia Transport Corridor site in Kililana in Lamu West. PHOTO | NMG

Ethiopia’s determination to gain direct passage to the Red Sea to be used as a military base and for commercial purposes for the next 50 years has once more thrust the $25 billion Lamu Port South Sudan Ethiopia Transport (Lapsset) into the spotlight.

Ethiopia’s move, if finally endorsed by Mogadishu, will directly have economic repercussions for Kenya, which has been courting the country to use the Lamu port for commercial services. (Mogadishu has nullified it: Somalia signs law ‘nullifying’ Ethiopia-Somaliland port deal)

Kenya was looking to Ethiopia as one of its main clients after South Sudan, which was at the forefront during the initiation of the project backed off due to the delayed implementation of key projects and lack of funding.

Lapsset is stuck on the starting blocks due to lack of funding and increasing insecurity on the corridor.

Kenya and its landlocked neighbours Ethiopia and South Sudan committed to raise funds to build infrastructure linking their economies on the Lapsset Corridor but not much has happened with each country opting to fund its own projects.

Source:  The East African, 8th January 2024