Berbera(ANN)-DP World, which manages Berbera international ports, and the government of Somaliland have cut the cord on the new duty-free zone, which is expected to contribute to the economy of the Republic of Somaliland. implement the site and become a large business that serves the Horn of Africa.
Related: DP World acquires US-based supply chain solution days after inaugurated the new container terminal at Berbera Port
The first phase of the economic zone was inaugurated after the opening of the container terminal at Berbera Port in June 2021, DP World, said in a statement on Friday.
“The dynamics of global trade are changing, and there is a growing need for trade infrastructure, such as economic zones, with easy and fast access to international shipping. These will bring companies closer to their customers, improve their logistics and allow them to expand into new markets,” said Sultan bin Sulayem, group chairman and chief executive of DP World.
“The integration of Berbera port with the new economic zone is a great example of this.”
The Dubai-based ports operator has been significantly expanding its footprint in Africa as it looks to tap into lucrative trade routes there. DP World has existing investments in Egypt, Algeria, Djibouti, Rwanda, Somaliland, Mozambique and Senegal, according to DP World, published by Araweelo News Network, 21st January 2019.
— Arraale M Jama (@Araweelonews) March 3, 2023
The new economic zone aims to attract investment and create jobs for Somaliland with business-friendly incentives. It operates under a new Special Economic Zone Law, Special Economic Zone Companies Law and offers fiscal and non-fiscal incentives.
It also features a one-stop shop for registration and licensing requirements, offices, warehousing and serviced land plots.
DP World said Berbera is well placed to become a regional trade hub, given its strategic location along one of the world’s busiest sea routes and access to the hinterland in the region, including Ethiopia.
Related: Somaliland and DP World have announced the second phase expansion and break ground for Economic Zone
The Berbera Economic Zone is located 15km from the port along the Berbera to Wajaale road — the Berbera Corridor — that connects to Addis Ababa in Ethiopia.
The integrated maritime, logistics and industrial hub will serve the Horn of Africa, a region with a population of more than 140 million.
Somaliland’s President Muse Bihi Abdi said: “After the inauguration of the container terminal at Berbera Port, and now with the economic zone open for business, we are taking a major leap forward in realising our vision to establish Berbera as an integrated, regional trade gateway, which will be a key driver of economic growth, achieved through increased trade flows, foreign investment and job creation.”
DP World has also signed an agreement with IFFCO, a UAE-based food company, to develop a 300,000-square-foot edible oil packing plant in the economic zone, while a dozen more companies operating across various sectors have already registered, according to the statement.
The master plan for the economic zone covers more than 1,200 hectares and will be expanded over time as demand grows, DP World said.
Related: DP World is Modernizing Berbera port, the region’s main port. After the Somaliland government Agreement
With the first phase now open, it will offer serviced land plots for the construction of company facilities, 10,000 square metres of pre-built warehouses, build-to-suit facilities, open yard storage, a common user warehouse that DP World will operate to handle customers’ cargo, and office space.
READ: Somaliland: DP World Completes 400 Meter Expansion Of Berbera Port
Berbera Port is a multipurpose port with infrastructure including bulk and break-bulk handling facilities, liquid cargo handling capability and a new container terminal. It has the capacity to handle 500,000 20-foot equivalent units (TEUs) a year.
After expansion, Berbera Port is expected to handle trade equivalent to approximately 27 per cent of Somaliland’s gross domestic product and 75 per cent of regional trade by 2035, the statement said.
Related: Somaliland and DP World have jointly opened a new Terminal at the Strategic Port of Berbera
The economic zone is expected to make trade easier for businesses in the region, benefiting exporters, importers and processors of livestock, agricultural and perishable goods, textiles and construction materials, DP World said.
On the occasion of cutting the cord in the duty-free zone of Berbera Port, it is worth noting that Somaliland government officials, national council members, representatives of Somaliland-related countries, diplomats, businessmen, and other dignitaries attended.
which is expected to contribute to the economy of the Republic of Somaliland. implement the site and become a large business that serves the Horn of Africa.
It is expected to contribute significantly to the economy of the Republic of Somaliland. The implementation of the site has become a large business that serves the Horn of Africa.
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By Arraale M Jama Freelance Journalist and Human Rights activist.