Emirati logistics multinational, DP World, along with the government of Somaliland, has inaugurated the new Berbera Economic Zone (BEZ), aimed at transforming trade on the Horn of Africa.
The first phase of the BEZ was officially opened today by Muse Bihi Abdi, the President of Somaliland, and Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, at a special event attended by several hundred guests.
These included representatives from DP World’s investment partner in the port and zone, British International Investment, the UK’s Development Finance Institution and impact investor.
The opening followed the inauguration of the new container terminal at Berbera port in June 2021*.
A statement released to the media this morning said DP World’s vision for Berbera was to develop it into a trade hub, taking advantage of its strategic location along one of the busiest sea routes in the world and access to the vast hinterland in the region, including Ethiopia.
The BEZ is located just 15 kilometres from the port on the road to Wajaale, connecting the Berbera Corridor to Addis Ababa, the Ethiopian capital, which needs multiple sea gateways to meet its trade requirements.
This integrated maritime, logistics and industrial hub will serve a region with a population of more than 140 million.
It is based on the highly successful model of DP World’s Jebel Ali Free Zone (Jafza) in Dubai.
There will also be synergies between the two zones, where companies in Dubai can register for Berbera through the Jafza one-stop shop, while companies in Berbera can access Jafza’s incubation centre facilities.
The zone is designed to create a business-friendly environment to attract investment and create jobs for Somaliland.
It includes a competitive and conducive environment, enabled by a new Special Economic Zone Law, Special Economic Zone Companies Law, fiscal and non-fiscal incentives, along with a one-stop shop for all registration and licensing requirements, modern offices, warehousing and serviced land plots.
DP World has already signed an agreement with IFFCO, a major UAE-based food company, to develop a 300 000 sq ft edible oil packing plant in the BEZ, and a dozen more companies operating across various sectors have already registered.
* Read this for context: “Berbera throws spanner in East African supply chain dynamics” (https://tinyurl.com/3sv99bse).
