As more details of the deal between Somaliland and Dubai Ports become known, people are becoming distasteful of it. In 2016 when the deal was signed, DP world had promised to invest $440 million in multiple phases with the first one including a quay, yard extension, and gantry cranes and reachstakers. This initial phase was slated to start 12 months after the conclusion of the agreement, and it was expected to last for 24 months. DP world is a global company that is attempting to expand its core business. The issue at hand and the outroar is steaming from the corrupt manner that the previous Somaliland government handled the negotiation of the contract, and the vast concessions that it bestowed upon DP World. With being said, Somaliland at this time should not follow the lead of Djibouti and expel DP world rather it needs to use this opportune time to put pressure on the company to modify the contract. However, a better deal will not be forthcoming without greater transparency from the local government. It is unclear why the value of the contract is so low considering the huge potential that the port has, and the length of the contract that is awarded. Therefore, we need to know the annual capacity of the port prior to the deal, and the volume of trade and income that it was generating for the country. Greater transparency makes people more accountable, it eliminates the possibility of bribery, and it allows for better analysis and negotiating position.
Maxamed A. X. Farax MIS, MBA
H. Abdi Dado Investments
General Director
Cell: 615-602-3531