By: Michele Maresca
Energy is one of the main areas where Somaliland is proving to be both a sovereign and a strategic country in the international area.
On the one hand, it is in fact exercising his right to enter into agreements with other States, thus demonstrating its meeting of the internal independence.
On the other, as Somaliland’s strategic location presents significant investment opportunities, like-minded countries are eager in investing for the exploration and drilling of energy and mineral resources.
A case in point that illustrates this scenario is given by the strong relationship with Taiwan that has led to the 2022 agreement, signed by Taiwan’s Minister of Economic Affairs and Somaliland’s Minister of Energy and Minerals, which establishes a legal framework for cooperation in exploration and drilling activities.
To better understand the main factors behind Hargeisa’s policy in the energy sector, as well as the common interests and purposes stemming from its partnership with Taipei, I had the pleasure to talk to Mohamed Osman Saeed, the former Director General of the Ministry of Energy and Minerals of the Republic of Somaliland.
Somaliland-Taiwan energy relations: a brilliant example of Hargeisa’s proactive approach
As regards Hargeisa’s energy cooperation with Taiwan, Saeed made reference to several objectives that illustrate the country’s proactive approach to energy policy.
Somaliland, in that sense, is looking for an enhanced cooperation which can lead to economic, energy and ultimately development goals.
First of all, as Somaliland prioritizes a stable and reliable energy supply, it regards Taiwan as an important partner to cooperate with for diversifying energy sources.
Taipei’s expertise, in this regard, can prove beneficial in terms of Hargeisa’s efforts towards building a strong wind and solar energy industry.
This partnership can also lay the foundations for “economic growth objectives”, such as stimulating economic development, creating jobs and elevating living standards in Somaliland, as Saeed told me.
Somaliland’s balancing approach to energy policy is evidenced by Hargeisa’s taking benefit from its relationship with Taiwan to modernise its energy sector, further illustrating the necessity to bring together immediate needs with long-term desires for development.
As the two countries look forward advancing their strategic interests in the energy sector, the 2022 agreement signed by the respective Ministers stands as a stepping stone to greater outcomes.
In this scenario, Saeed pointed out that a joint-work was formed to facilitate cooperation between the two sides in view of the first exploration well, which is is to be drilled by the end of 2025.
By showing their willingness to implement the agreement signed three years ago, the parties are further underscoring their understanding of the mutual benefits arising from it: Somaliland is looking for enhanced resources management capabilities, whereas Taiwan is determined to invest in the energy sector so as to diversify its energy supplies.
However, Somaliland’s vision to achieve a resilient and sustainable energy infrastructure is currently challenged by two specific factors, as Saeed told me: heavy reliance on imported diesel from the GCC countries and the negative effects on the economy given by the expensive foreign currency use.
Achieving a “reduced dependence on costly imports” and enhancing “energy efficiency” are the main reasons behind Somaliland’s decision to fostering strong and productive relationships with regional and international stakeholders.
The US and the UAE can play a significant role in advancing Somaliland’s strategic interests
Within this regard, Saeed stressed the potential role the US can play out under the Trump administration in terms of involvement in Somaliland’s energy and mineral sectors.
The new government of the United States is in fact placing strategic importance to the Somaliland file, showing its willingness to engage in a more effective way with the Horn of Africa State.
When it comes to energy, as well as other potential sources of investments, the US’ willingness to engage with international stakeholders is grounded on a basic premise: is the State’s environment feasible for durable and productive investments?
Given Somaliland’s relatively safe environment, evidenced by its strong institutions and peaceful transition of power, the United States could regard it as a potential partner to cooperate with in the energy file. This would certainly help Hargeisa building local capacity through training programs and knowledge sharing.
A case in point that illustrates Somaliland’s willingness to engage with international stakeholders as regards the energy sector is Hargeisa’s relationship with the UAE.
As the Ministry of Foreign Affairs stated after Abdullahi Irro’s visit to Abu Dhabi, the first since he was elected President of the Republic of Somaliland, the “delegation reached key agreements and protocols of understanding aimed at enhancing investment opportunities in vital sectors such as livestock, agriculture, minerals, energy, and infrastructure”.
Given Trump’s excellent relations with the UAE rulers, it wouldn’t be surprising to have a US’ involvement in joint investments in Somaliland’s energy and mineral resources.
As Hargeisa aims to accelerate sector developments and attract more investments, it is in fact willing to engage with international partners through a collaborative approach in sight of finalizing production sharing agreements, Saeed told me.
Bipartisan support to fostering a productive relationship with the UAE based on mutual benefit is the key to understanding how the situation may unfold. Likewise Kulmiye, Waddani is eager to attract investments that could prove beneficial as to attain significant long-term goals both in the energy and diplomatic realms.
Expanding its partnership with a key GCC partner could, in fact, not only lead to important outcomes within the energy file, but also to an enhanced cooperation based on common understanding of sensitive topics.
In this regard, as the US is expected to consider recognising Somaliland during the Trump’s term, the UAE could play a significant role in help bring Washington closer to Hargeisa while advancing its own strategic agenda.
SOURCE:HORNDIPLOMAT