Ethiopia Declines Djibouti Port Equity Offer, Seeks Corridor Access Instead

Mintesinot Nigussie

Ethiopia has turned down a proposal from Djibouti to acquire a majority stake in one of its ports, instead seeking a corridor arrangement alongside equity participation. The Djibouti Ports and Free Zones Authority (DPFZA) said it had offered Ethiopia a 60 percent stake in the Port of Tadjoura as part of efforts to deepen maritime cooperation.

DPFZA chairman Aboubakar Omar Hadi said Ethiopian officials rejected the offer and proposed an additional corridor arrangement beyond the equity stake. He indicated that Addis Ababa had pushed for an arrangement that went beyond ownership, linking its participation to the creation of a dedicated transit corridor.

The divergence in expectations has complicated the talks, while Djibouti remains open to deeper cooperation with Ethiopia. The country continues to facilitate Ethiopian cargo flows through its port system and views equity participation as part of its broader engagement model.

The proposal had been presented as a straightforward equity deal, offering Ethiopia a controlling 60 percent interest in the Port of Tadjoura. Ethiopian officials have instead prioritised a comprehensive corridor solution that would guarantee reliable access for its imports and exports.

The development reflects Ethiopia’s strategic focus on securing long-term maritime access routes rather than isolated equity stakes in foreign ports. Djibouti, which handles the majority of Ethiopia’s sea trade, continues to position itself as a key partner in regional logistics.

Businesses in trade, logistics and port operations are closely monitoring the outcome, as any final agreement could significantly influence freight costs and supply chain efficiency for Ethiopian importers and exporters.

The talks highlight the ongoing importance of the Ethiopia-Djibouti economic corridor in the Horn of Africa’s trade architecture. Both sides have expressed willingness to continue negotiations to reach a mutually beneficial arrangement.

Overall, Ethiopia’s decision to decline the pure equity offer while seeking a corridor solution underscores its determination to secure reliable and comprehensive access to maritime routes critical for its economic growth.