The Federal Government of Somalia is now focusing on leveraging the economic opportunities provided by Hobyo Port and the Freezone in Mogadishu to enhance regional trade. This comes after the signing of a partnership between the Hobyo Investment Company and Turkish conglomerate Metag Holding to develop Hobyo Port.
The official signing of the 80-year agreement was attended by Galmudug State President Ahmed Abdi Kariye, who emphasized the potential of the port to transform Somalia’s central coastline into a key trade hub.
Kariye highlighted the strategic significance of Hobyo Port, particularly for Ethiopia, which lacks a direct seaport and depends heavily on Djibouti for 90% of its imports and exports. He expressed optimism about the project’s potential, stating, “Ethiopia does not have a port, and Hobyo presents an exceptional business opportunity. We will soon overcome the challenges we face, and Hobyo will emerge as one of the largest ports in Somalia, serving multiple cities across the nation.”
The development of Hobyo Port is set to ease congestion at Mogadishu’s overburdened port, redistributing trade and improving efficiency within Somalia’s maritime trade network. This project is expected to bring substantial economic benefits to Galmudug, including job creation, infrastructure improvement, and support for local businesses.
Once completed, Hobyo Port is anticipated to become a crucial export point for Somalia’s livestock and agricultural products, providing significant advantages to farmers and traders in the region. Its strategic location along key maritime routes linking the Middle East, Asia, and East Africa positions it as a central hub in a growing trade network.
Somalia, with one of the largest coastlines in Africa, has long been hindered from tapping into its maritime potential due to internal conflict and security threats. However, the progress made with Hobyo Port marks a significant shift.
Mahad Salad, the former Director of Somalia’s National Intelligence Service (NISA), praised the Committee overseeing the port’s construction for reaching this important milestone, which clears the way for the project’s official launch.
Among those attending the signing ceremony were prominent businessman Liban Ahmed Hassan, who is also eyeing the Galmudug presidency. Hassan played a pivotal role in securing the initial funding and raising $29 million for the port’s construction. The event was also attended by federal ministers, lawmakers, and other business leaders, highlighting the wide-reaching support for the project.
