Ethiopia gets new port! Coffee exports are expected to increase

According to local reports, the Foreign Minister of Djibouti, Ethiopia's neighbor, said in an interview that the port of Tajura (Tadjoura) was being provided to Ethiopia for "full management." No details were provided as well as details of the conditions offered to Ethiopia.

In fact, after Eritrea separated from Ethiopia in 1993, Ethiopia became a landlocked country and lost its port, so Ethiopia's imports and exports mainly depended on the port of Jibouti in neighboring Djibouti. Djibouti also benefited as it received more than US $1 billion in port dues each year from Ethiopian imports and exports.

According to the Minister for Foreign Affairs of Djibouti, Djibouti is a stable country, but the progress situation in neighbouring countries has not been alleviated, so Djibouti may also be affected.

Recently, relations between Ethiopia and Somalia have continued to deteriorate due to the signing of a memorandum of understanding between Ethiopia and Somaliland, which Ethiopia recognizes as an independent country while obtaining 20 km of coastal land and port use rights in Somaliland on lease for 50 years.

Earlier, Turkey intervened between the two sides to organize peace talks between the two countries, but failed in the end. Somalia believes that Ethiopia's signing of the memorandum of understanding is a violation of Somali sovereignty, and before Ethiopia revokes the memorandum of understanding with Somaliland, there is no room for dialogue. At present, Somalia is also supported by Egypt and Eritrea, and Egypt has also signed a defense agreement with Somalia to deploy 10,000 troops in Somalia. On August 27th Egypt sent two military aircraft and some military equipment to Somalia.

Ethiopia believes that it is a legitimate right to sign a memorandum of understanding with Somaliland to seek maritime rights in Somaliland. In addition, Ethiopia became the first country to send an ambassador to Somaliland.

In response to Egypt's dispatch of military aircraft, Ethiopian officials are monitoring developments in the region that may threaten national security, and say they are committed to resolving differences peacefully. However, there are reports that the Ethiopian government has begun to deploy troops to Somalee on the border between Ethiopia and Somalia. Therefore, the current situation in the Horn of Africa is very urgent and conflicts may break out at any time.

For the Ethiopian country, the current situation can be described as internal and external troubles, with continuous armed conflicts between the country and a number of armed forces, the location of the conflict has also spread from the north of the country to the south, and the newly released reforms have led to a substantial devaluation of the exchange rate of the currency, the Bill, and the rising cost of living, leading to public discontent and uncertain industrial prospects.

In addition, the Ethiopian industry is very dependent on imports and exports, especially agricultural products such as coffee, but imports and exports were seriously hampered by the impact of the Red Sea crisis at the port of Djibouti. According to data reported earlier by the Ethiopian Coffee and Tea Authority, due to the situation and security problems, coffee prices in Ethiopia are slowly rising, but coffee exports have fallen by 27 percent. That is why Ethiopia has sought ports from other countries to solve the problem of obstruction.

At present, Djibouti wants to use the port to ease regional tensions, and is expected to increase the throughput of Ethiopian goods and increase the total volume of imports and exports, which is beneficial to Ethiopian coffee and other industries. However, the port of Tajura in Djibouti is still in the Gulf of Aden, still in the Red Sea area, and has been hit by Houthi armed groups. Recently, there have also been reports of Houthi armed groups attacking ships.

As a result, it is not possible to assess whether Djibouti's provision of ports to Ethiopia will ease tensions in the region, and the Ethiopian Ministry of Foreign Affairs has not yet responded to the Djibouti port, and the prospects for multiple industries in Ethiopia, including coffee, remain uncertain.

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