Ethiopia’s government plans to give Somaliland an undisclosed stake in their state-owned airline, Ethiopian Airlines, as a part of a new agreement between the two which also includes sea access for Ethiopia.
Ethiopian Prime Minister’s national-security adviser, Redwan Hussein, stated that negotiations detailing stake ownership should conclude within a month.
The Memorandum of Understanding, signed on January 1, 2024, allows Ethiopia a 50-year lease of a part of the Gulf of Aden coast, though the location remains unspecified. However, no explicit diplomatic recognition of Somaliland as a sovereign state is outlined in the Ethiopian communique.
This historical agreement will mark the first time a foreign government has held a stake in Ethiopian Airlines, a company known for acquiring shareholdings in other African start-up airlines like ASKY Airlines, Ethiopian Mozambique Airlines, and Malawi Airlines.
