By Abdibasid Abdiasis
This article is based on the recent official state visit of the President of the Republic of Somaliland to Djibouti, an event that marks a renewed commitment to bilateral cooperation and a timely opportunity to strengthen ties between the two neighboring nations.
In a rapidly evolving geopolitical landscape, regional partnerships rooted in mutual interests and shared vision are more vital than ever. One such partnership with immense untapped potential is the cooperation between Somaliland and Djibouti, a relationship that, if deepened strategically, could be transformative for both nations and the wider Horn of Africa.
Djibouti’s current role as Chair of the African Union places it at the heart of the continent’s decision-making body. This leadership position isn’t just symbolic; it gives Djibouti the diplomatic leverage to advocate for unresolved regional matters, like Somaliland’s political status backed by historical context, including the African Union’s 2005 fact-finding mission report on Somaliland, which acknowledged Somaliland’s unique case.
Moreover, Djibouti also chairs IGAD, the Intergovernmental Authority on Development, a key platform for addressing peace, security, and integration in the Horn. This leadership could play a constructive role in facilitating dialogue and stability across borders, especially in relation to Somaliland’s aspirations and regional economic integration.
From a security standpoint, Djibouti hosts the United States Africa Command (AFRICOM) base, Washington’s largest military installation in Africa. A stronger bilateral relationship could open new channels for Somaliland–U.S. engagement, particularly in maritime security, counterterrorism, and development partnerships.
Beyond diplomacy and security, trade and infrastructure are practical entry points for deeper cooperation. Somaliland currently exports various products to Djibouti, particularly furniture, highlighting an already active trade link. Further infrastructure development, such as completing the Lawyado–Borama road, would significantly boost social, economic, and political integration, transforming the corridor into a symbol of connectivity and prosperity.
Establishing a joint free zone at Lawyacado could become a regional business hub, spurring cross-border trade, creating jobs, and attracting investment. Meanwhile, improved digital and financial integration, such as cross-border payments and digital service platforms would ease business operations and strengthen people-to-people ties.
Telecommunications, too, form a backbone of this partnership. Djibouti Telecom’s Fiber optic cables serve as a vital internet lifeline for Somaliland, supporting everything from education and banking to digital innovation.
A particularly promising area of cooperation lies in the financial sector. Collaboration between Djibouti’s international banks and Somaliland’s growing banking sector could help bridge global financial networks, opening access to international finance for Somali-owned banks.
Lastly, joint tourism initiatives focusing on the Red Sea’s unexplored beauty can generate revenue, preserve culture, and foster regional collaboration. The Red Sea corridor, rich in history and marine biodiversity, holds immense potential for eco-tourism and cultural heritage promotion.
In conclusion, this President Irro’s state visit presents more than a diplomatic courtesy, it’s a powerful signal of what regional collaboration can achieve. Enhanced cooperation between Somaliland and Djibouti isn’t just a matter of bilateral interest, it’s a strategic opportunity for economic growth, stability, and international engagement. Both governments should seize this moment to chart a shared path forward in regional development, connectivity, and peace.
About The Author
Pioneer transformative FinTech, sustainable and development finance . Having both banking and insurance sectors experience correctly pisuing MSc in Development Finance at Strathmore Business School and skilled Islamic finance, fund attraction, project financing, central banking diplomacy, and business negotiation skills”
Contact: +25263488778, +254702938444 abdiasis.yousuf@strathmore.du Somalilandfinancialjour48@gmail.com Nairobi, Kenya.
Twitter: @AbdibasidSh founder @SomalilandFT
