The AfCFTA and the Berbera Corridor: opportunities for and potential impact on Somaliland’s economy

Published: ODI, October 2022

Key messages:

The African Continental Free Trade Area Somaliland’s economy to medium t erm. , even though it (AfCFTA) offers potential opportunities for is not likely to be part of the AfCFTA in the short

The potential opportunities are, first, barriers to trade by Somaliland could address domestic nontariff aligning its laws and policies with those of the AfCFTA protocols. Second, increased alignment and higher continental income could generate a demand pull effect on export sectors in which Somaliland has a comparative advantage. Third, a more aligned trade framework and a strengthened trade position could pave the way for Somaliland to enter into bilateral trade agreements with its main trade partners.

Through the Berbera Corridor project, increase in the volume and value of the Port’s operations, which greatly to Somaliland’s economic development.