Ethio-Djibouti Infrastructure Development Cooperation since 1998: Security Implications for Ethiopia
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Date
2020-08-01
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Addis Ababa University
Abstract
This study examines Ethio-Djibouti infrastructure development cooperation since 1998, with emphasis on its
security implications for Ethiopia. Field data were gathered through key informant interviews. Major findings of the
study are the following. Ethiopia and Djibouti have experienced long economic and political relations. Ethiopia is
obtaining foreign currency from the energy trade although minimal due to low selling price and smaller amount
exported. Besides, the supply of potable water to Djibouti for free regardless of Ethiopia’s huge port and demurrage
expenses on daily bases is to the advantage of Djibouti. Nonetheless, Ethiopia’s submarine optic fiber global
network through Djibouti has resulted in reduced telecommunication cost, economic development, as well as,
improvement of ICT infrastructure. On the other hand, in view of transit infrastructure, the railway, improved port
facilities, development of dry ports in both countries, and multimodal transit system have benefited Ethiopia.
Foreign powers’ involvement, huge port tax and demurrage costs, inadequate port capacity, poor road standard
mainly on the Djibouti side, distance, and inefficient freight forwarding and customs practice have insecurity
implications for Ethiopia. As regards multi-sectorial security, the infrastructure linkage has created economic inter
dependability, peace, and cooperation between border communities and reinforced social, cultural, and political
bond despite hesitance on part of the Djiboutian elite. The infrastructural connectivity has also prospect of
enhancing regional infrastructure and economic integration. Paradoxically, Djibouti’s port service charge is very
high, which does not consider economic returns that it secures from Ethiopia. Besides, Djibouti’s trans-shipment
business, unpredictability and weak commitment of Djiboutian political elite, military presence of external powers,
the Gulf crisis, and Djibouti’s concern regarding Ethiopia’s alliance with United Arab Emirate, Somaliland, and
Eritrea are constraints to the infrastructural development cooperation between Ethiopia and Djibouti. The study
concludes that the Ethio-Djibouti infrastructural connectivity has instigated security and insecurity implications for
Ethiopia suggesting the need for Ethiopia’s diversification of infrastructural linkages mainly land transport and
maritime gateway without hurting its current relations with Djibouti, and boost security of the shipping operation by
setting navy force at Djibouti. The study calls for further research in a comparative manner that would examine
alternative port and transit corridor facilities bearing in mind distance, transit time and cost, capability of maritime
logistics, and ramification of geopolitical alignment in the region to address Ethiopia’s maritime access security
dilemma.
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Keywords
Ethio-Djibouti Infrastructure Development, Ethiopia and Djibouti economic and political relations.