With a remarkable investment in roads, railway and port services worth between 12-15 billion USD, Ethio-Djibouti’s growing all-round ties is flickering hopes of economic integration in the volatile Horn.
Economic cooperation in East Africa has not only been characterized by its lowest nature; it is still the slowest by all virtues–individual country’s poor economic performance, lack of peace and security as well as governments’ commitment could be some of the factors ascribable to this reality.
The pragmatic efforts of governments of Ethiopia and Djibouti have, however, precluded the continuation of this reality by shedding beam of joint cooperation light.
It goes without saying that the two countries have already been glued by natural, historical and cultural ties–important niche for bilateral cooperation to grow healthily. Put another way, the same people are living in two different sovereign countries. That is why joining the two peoples/economies on the basis of their shared interests is a right move.
The last fifteen years has, therefore, seen productive developments in the economic fronts as well, meaning the national and economic interests of both countries have now been braided together deepening their interdependence than any time before.
Ethiopia has expanded the cooperation base by offering to Djibouti the dearly needed energy, fresh goods, and potable water, among others. In reciprocity, Djibouti has availed itself of the opportunity of sea outlet to Ethiopia’s import-export business.
These relations have still prospects to grow more and more.
Ethiopian government’s forward-looking investment policies and strategies have ended up in absorbing the bulk of foreign direct investment flowing into Africa.
In addition to availing land to investment and accommodation, ‘plug and play’ industrial parks (IPs) of various kinds, dedicated to textile and apparel; leather and leather products; food processing and the like are made operational.
To trim long story short, value-added products from the IPs have to join the international market through Djibouti’s Ports. That is why all of the IPs constructions are made in close proximity to the red-sea port of Djibouti. Besides, the two countries have spent billions of USD on the 752-kms Ethio-Djibouti electrified railroad to facilitate the import-export process.
Equally, Djibouti’s energy demands are growing by leaps and bounds. In addition to the existing hydro-power export, new high-voltage electricity transmission towers are under construction to supply Djibouti with additional power.
These relations are premised on appropriate bilateral institutional set ups in which various socio-economic issues are dealt with. The 24th Ethio-Djibouti Joint Boarder Administrators/Commissioners meeting which was held in Semera State of Afri State in mid March is notable in this regard. The platform is decisive in tackling challenges relating to boarder security, immigration and other emerging issues.
By and large, the institutional set ups are the linchpins in securing the mutual interests of the two countries. And the ultimate end of the cooperation would not be obscured from any common man, awarding the millions of peoples of the two respective peoples with a better standard of living.
Without a shadow of doubt, the two countries’ bondage has proven the dream of economic integration in east Africa true. The commitments of the two governments have born sweat fruits. A point in par with this should be furthering the tasks by working to the last fiber to tackle real and perceived security issues.
Radical terror groups such as al-Shabbab as well as the ill-fated groups’ all-time ally, Eritrean regime, are among their common trans-boundary security threats which they should tackle in concert.
The light emitting from the two Horn countries is sure to leave the examples to expedite regional economic integration in East Africa.