Djibouti City, Djibouti
Djibouti has announced that Ethiopia declined an offer to acquire a majority stake in one of its ports, instead requesting a corridor arrangement along with the proposed equity.
On Monday, the Djibouti Ports and Free Zones Authority (DPFZA) revealed that the Djiboutian government had offered Ethiopia a 60 percent stake in the port of Tadjoura.
DPFZA Chairman Aboubakar Omar Hadi stated that Ethiopian officials did not accept the proposal and instead sought a corridor arrangement in addition to the equity stake.
“We are clear and transparent—our offer was a 60 percent share in Tadjoura,” Hadi said during a press conference in Djibouti. “The Ethiopian government declined the proposal, seeking a corridor on top of the equity stake.”
Hadi emphasized that Djibouti remains open to collaborating with Ethiopia, highlighting the existing facilities available for Ethiopian trade. He noted that Djibouti has consistently provided port access and proposed equity participation as part of its engagement strategy. “We are working well with the government and offering them all the facilities they need to use our ports. We are very open to Ethiopia,” he stated.
Ethiopia has been landlocked since the early 1990s, following Eritrea’s independence, which resulted in the loss of direct access to the Red Sea. Critics have accused the previous ruling coalition, the Ethiopian People’s Revolutionary Democratic Front (EPRDF), of failing to secure a Red Sea outlet during negotiations when Eritrea seceded with all coastal territories. Today, Ethiopia is the world’s most populous landlocked country.
In recent years, Addis Ababa, viewing the loss of sea access as historically unjust, has intensified efforts to secure maritime access. On January 1, 2024, Ethiopia signed a memorandum of understanding with Somaliland to gain access to a port on the Gulf of Aden in exchange for a stake in state-owned enterprises—a deal that has heightened regional tensions.
In response, Djibouti proposed alternative arrangements along its coastline, including access through Tadjoura. However, Ethiopia’s reported request for a corridor—potentially involving special administrative or transit rights—appears to have stalled negotiations.
Separately, in October 2025, Djibouti entered a 30-year concession agreement with Red Sea Gateway Terminal International (RSGTI), a subsidiary of Saudi Arabia’s Jeddah-based Red Sea Gateway Terminal (RSGT), to operate port facilities on the Red Sea.
Increased tensions in the Gulf have led to a rise in vessel traffic at Djibouti’s ports, as some shipments have been redirected from regional hubs such as Jebel Ali.
Hadi assured that Djibouti has the capacity to manage this increase. “We have around six deep-sea ports, so we do not expect congestion,” he remarked, noting that while inland transport may pose challenges, they can be addressed through transshipment operations—ship to ship.
He also confirmed that Ethiopian cargo would be prioritized. “We will give priority to cargo destined for Ethiopia,” Hadi emphasized, particularly highlighting fertilizer shipments.
Regarding security, Hadi downplayed risks associated with Yemen’s Houthi forces, stating that Djibouti’s ports are located south of the Bab el-Mandeb Strait. Djibouti also hosts a significant United States military installation.
On March 10, DPFZA issued a notice instructing shipping agents not to impose additional surcharges on cargo loaded prior to the onset of the Gulf crisis.
The authority stated that this measure aims to ensure fairness and prevent retroactive charges, warning that violations would lead to administrative action under port regulations.
