Monday, June 26, 2017

Climate change could lower the quality of your coffee and Ethiopia could lose 60%



Your morning cup of coffee may not taste as good if climate change keeps pummeling Ethiopia, a study shows.



Story highlights

  • Rising temperatures cause coffee beans to ripen too quickly and lose complex flavors
  • By 2050, the global demand for coffee will double. But there will be half as much suitable land to grow it on
(CNN)What will it take for people to care about climate change? For some, the thought of a crummier cup of coffee in the morning just might do it.
A new study finds that Ethiopia, the world's fifth-largest coffee producer, could lose up to 60% of its suitable farming land by the end of this century because of climate change.
    The study, published Monday in Nature Plants, found the combination of low rainfall and rising temperatures could have substantial effects on the coffee-growing areas in the country.
    As temperatures steadily climb, so does the demand from coffee junkies, who might not be able to find a cup of joe that's up to their standards.

    What this means for coffee drinkers

    According to a report from World Coffee Research, the demand for coffee will have doubled by 2050, but the suitable land to grow it on will be cut in half.
    And the effects of climate change don't just lower how much coffee is produced -- they can also hamper its quality.
    In areas with lower temperatures, coffee quality is generally higher, World Coffee Research spokeswoman Hanna Neuschwander told CNN.
    Cooler temperatures allow the coffee to ripen more slowly -- and that means more time to develop more complex flavor elements like acidity and sweetness.
    But when temperatures rise, as they have slowly been doing in Ethiopia for years, the warmth causes the coffee to ripen too quickly, which means less flavorful beans.
    A shift in quality is the main difference consumers will see. Even though a decline in suitable farming land would logically lead to a decline in supply, Neuschwander said it's not likely that coffee drinkers will see any hike in price.
    Even if production drops in one country, such as Ethiopia, prices could drop at the same time in other major coffee-exporting countries, like Brazil or Vietnam, Neuschwander said.
    "It takes a lot longer for consumer effects to travel," Neuschwander said. "It's a very distorted market as a commodity market."

    What this means for Ethiopia's economy

    Coffee junkies may not see any big changes in price, but the impact on Ethiopia's economy could be huge.
    Arabica coffee production makes up about one quarter of the country's total export earnings. Fifteen million people, or 16% of the population, make a living through coffee farming.
    Ethiopia Coffee

    Ethiopia Coffee 01:43
    Most of those coffee farmers are smallholders, according to World Coffee Research. Smallholders manage modest, usually family-owned farms, which means they might not have the resources available to adapt to these climate changes. With less ability to adjust, they are more likely to stop growing coffee altogether.
    "The problem is coffee producers aren't paid enough, so helping them adapt to a very difficult complex, changing situation like you see with climate change and extreme weather events is very, very difficult to do," Neuschwander said.

    What this means for the environment

    Ethiopian coffee farmers have noticed climate changes that have harmed production, including warmer nights, a shorter wet season, irregular precipitation patterns and more extreme weather.
    And there's science to back up the farmers' observations: Research cited in the Nature Plants study shows an uptick in warmer days in various areas where coffee is grown.
    On top of the observable effects, Ethiopia's average annual temperature increased by 1.3 degrees from 1960 to 2006. That's a rate of .28 degrees per decade, and that average could push up temperatures another 3.1 degrees by the 2060s.
    Ethiopia has also seen big changes in precipitation. Since the mid-1970s, rainfall has decreased by 15% to 20% in the southern part of the nation, and droughts have become more common in all parts of the country for the last 10 to 15 years.
    None of this is great news for lovers of Ethiopian coffee, who may eventually want to look to other countries for their coffee fix.

    Sunday, June 25, 2017

    Global warming brews big trouble in coffee birthplace Ethiopia | Environment | The Guardian

    Global warming is likely to wipe out half of the coffee growing area in Ethiopia, the birthplace of the bean, according to a groundbreaking new study. Rising temperatures have already damaged some special areas of origin, with these losses being likened to France losing one of its great wine regions.
    Ethiopia’s highlands also host a unique treasure trove of wild coffee varieties, meaning new flavour profiles and growing traits could be lost before having been discovered. However, the new research also reveals that if a massive programme of moving plantations up hillsides to cooler altitudes were feasible, coffee production could actually increase.
    Coffee vies with tea as the world’s favourite beverage and employs 100 million people worldwide in farming the beans alone. But climate change is coffee’s greatest long-term threat, killing plantations or reducing bean quality and allowing the deadly coffee leaf rust fungus to thrive. Without major action both in the coffee industry and in slashing greenhouse gas emissions, coffee is predicted to become more expensive and worse-tasting.
    The research combined climate-change computer modelling with detailed measurements of current ground conditions, gathered in fieldwork that covered a total distance of 30,000km within Ethiopia. It found that 40-60% of today’s coffee growing areas in Ethiopia would be unsuitable by the end of the century under a range of likely warming scenarios.
    But the study, published in the journal Nature Plants, also shows that major relocation programmes could preserve or even expand the country’s coffee-growing areas. “There is a pathway to resilience, even under climate change,” said Aaron Davis, at the Royal Botanic Gardens Kew in the UK, who conducted the work with Ethiopian scientists. “But it is a hugely daunting task. Millions of farmers would have to change.”
    However, by 2040, such moves uphill will have reached the top of Ethiopia’s mountains. “It literally reaches the ceiling, because you don’t have any higher place to go,” Davis said.
    The impacts of global warming are already being seen as temperatures have been rising steadily in Ethiopia for decades. Farmers report a longer, more extreme dry season and more intense rain in the wet season, with good harvests much less frequent than in their parents and grandparents’ time.
    One famous coffee location likely to be lost is Harar. “In one area, there are hundreds if not thousands of hectares of dead trees,” said Davis. “It is a world renowned name and has been grown in that area for many centuries. But under all [climate change] scenarios, it’s going to get worse.
    “Some of the origins, what you would call terroir in the wine industry, will disappear, unless serious intervention is undertaken,” he said. “It would be like losing the Burgundy wine region. Those areas are found nowhere else but Ethiopia, and because of the genetic diversity, the diversity of flavour profiles is globally unique.”
    Both arabica and robusta coffee originated in Ethiopia and wild arabica plants are virtually unknown outside the country. The wild arabica varieties may well harbour traits for disease and drought resistance that could prove vital for the future health of coffee crops.
    Prof Sebsebe Demissew, from the University of Addis Ababa and one of the research team, said: “Coffee originates from the highland forests of Ethiopia, and it is our gift to the world. As Ethiopia is the main natural storehouse of arabica genetic diversity, what happens in Ethiopia could have long-term impacts for coffee farming globally.”


    A dried up river bed in Ethiopia’s northern Amhara region reveals the effects of climate change.
    Pinterest
     A dried up river bed in Ethiopia’s northern Amhara region reveals effects of climate change. Photograph: Katy Migiro/Reuters


    The new research is a “brilliant piece of work”, according to Tim Schilling, chief executive of the World Coffee Research programme: “This is the only comprehensive, country-specific study I have seen that uses some of the best methods in climate modelling coupled to very rigorous ground-truthing – extremely useful for governments and industry and a model to be repeated.”
    Schilling led an expedition into South Sudan in 2013 to confirm wild arabica coffee was also present in the Boma forest: “What we found was major degradation caused by climate change on the forest and the wild coffee under its canopy. That is pretty much what I think we can expect if nothing is done to preserve the arabica genetic treasure chest in Ethiopia.”
    Schilling said new varieties and growing methods must be developed and that plantation “migration will have to be part of a plan B”. He added: “Plan C might be moving up in latitude and growing coffee in Southern France and Texas!” But he said funding all this is difficult when coffee producers are not making much money at present.
    The Intergovernmental Panel on Climate Change concluded in 2014: “The overall predictions are for a reduction in area suitable for coffee production by 2050 in all countries studied. In many cases, the area suitable for production would decrease considerably with increases of temperature of only 2-2.5C.” It said that in Brazil, the world’s biggest coffee producer, a temperature rise of 3C would slash the area suitable for coffee by two-thirds in the principal growing states. In 2016, other researchers predicted climate change will halve the world’s coffee-growing area.
    “People should also be thinking about the millions of smallholder farmers who put their coffee on the table,” said Davis. “The coffee farmers of Ethiopia are really on the frontline [of climate change] – they are the people who will pay the price first. In the longer term, the only truly sustainable solution is to combat the root causes of climate change.”

    Thursday, December 29, 2016

    Major Chinese projects in sub-Saharan Africa in 2016 ecns

    From electrified railways to hydro power plants, a number of Chinese projects continued to spring up and boost development in Africa this year amid blossoming Sino-African cooperation.
    The following is a Xinhua review on major Chinese-built or Chinese-funded infrastructure projects that began or finished construction in sub-Saharan Africa in 2016:
    ETHIOPIA-DJIBOUTI RAILWAY
    Ethiopia on Oct. 5 launched its first electrified railway linking its capital and Djibouti, with officials hailing the Chinese-built rail as the latest testament to the Sino-African friendship.
    The 752.7-km Ethiopia-Djibouti railway, also known as Addis Ababa-Djibouti railway, will avail landlocked Ethiopia a faster access to the sea (via Djibouti port), reducing travel time from seven days on roads to about 10 hours.
    The railway was hailed by Chinese Vice Premier Wang Yang as the "Tazara railway in a new era," referring to the railway linking Tanzania's Dar es Salaam with Zambia's Kapiri Mposhi that China sent over 50,000 workers to build in the 1970s despite its own economic difficulties.
    Constructed by China Railway Group and China Civil Engineering Construction Corporation, the railway features the use of a complete sets of Chinese equipment and standards. It is also the second trans-national railway built by Chinese in Africa, following the Tazara.
    NAIROBI-NAIVASHA RAILWAY
    Kenya on Nov. 19 launched the Nairobi-Naivasha Standard Gauge Railway (SGR) Project, being built by China Communications Construction Company (CCCC) and funded by China's Exim Bank.
    The project is the phase A of Nairobi-Malaba SGR Project and an extension of the Nairobi-Mombasa SGR. The 120.4-km line starts from the Kenyan capital city to Malaba, a border city between Kenya and Uganda.
    Speaking at the launch ceremony, Kenyan President Uhuru Kenyatta said the modern railway line would catalyze Kenya's industrial transformation and position the country as an investment hub.
    ABUJA-KADUNA RAILWAY
    The Abuja-Kaduna standard gauge railway, linking Nigeria's capital Abuja and the northwestern state of Kaduna, was open for commercial operation in July.
    The 186.5-km line was built by China Civil Engineering Construction Corporation with nine stations and a designed speed of 150 km per hour.
    The railway is part of the railway modernization initiative by Nigeria to replace the existing narrow gauge system with the wider standard gauge system, while allowing high-speed train operations on the railway network.
    NYERERE BRIDGE
    Tanzania's commercial capital Dar es Salaam added a new urban landmark on April 19 when the Chinese-built Nyerere Bridge, or Kigamboni Bridge, opened to traffic as the largest cable-stayed cross-sea bridge in East Africa.
    The 680-meter-long, six-lane bridge now offers a shortcut from Dar es Salaam's CBD to the Kigamboni district. Prior to its opening, many local residents have relied on wooden boat ferry to cross the creek separating the two places.
    Tanzanian President John Magufuli has named the bridge Nyerere in recognition of the country's founding leader -- Julius Nyerere.
    It was built by China Railway Construction Engineering Group in a joint venture with China Railway Major Bridge Group.
    GIBE III HYDRO POWER PLANT
    Ethiopia on Dec. 17 inaugurated the Gibe III hydro power plant, which will further enhance the country's reputation as a hydro powerhouse in East Africa.
    The Gibe III project boasts a generating capacity of 1,870 MW, which will raise Ethiopia's power generation capacity to more than 4,260 MW.
    Located in the Southern Regional State, Gibe III has been contracted by Salini Impregilo of Italy for the civil works, and Dong Fang Electric Corp. of China for the electromechanical works. A loan from the Industrial and Commercial Bank of China (ICBC) financed 60 percent of the cost.
    VICTORIA FALLS AIRPORT
    Zimbabwe's Victoria Falls International Airport, upgraded and expanded with support from China, was commissioned on Nov. 18 with the hope of ushering in more tourists to the country.
    The upgraded airport can now handle 1.5 million passengers per year, up from 500,000, and boasts new facilities including a new international terminal building, a new 4-km runway, extended parking areas for aircraft and new road networks.
    The airport is the gateway to Victoria Falls, a world heritage site.
    The project was done by China Jiangsu International and financed through a 150-million-U.S.-dollar-loan from China EXIM Bank.
    TEMA PORT AND KOTOKURABA MARKET
    Ghana's eastern port of Tema on Nov. 16 began expansion, undertaken by the China Harbor Engineering Company, amid a drive to become a more efficient gateway to Africa.
    Under the project, a total of 120 hectares of land would be reclaimed from the sea. The project will also see the upgrading of the two-lane Tema-Accra Expressway into a six-lane road to ease traffic flow.
    Ghana on Nov. 29 commissioned the new Kotokuraba market, whose construction was financed by China EXIM Bank and undertaken by China Railway Construction Engineering Group.
    The market in the ancient capital Cape Coast features modern facilities including a 200-capacity parking lot, a solar system for emergency lighting and CCTV security cameras.
    The market renovation and construction is expected to ease congestion in the former Kotokuraba market, which had suffered two major fires with heavy losses.
    BURUNDI'S DIGITAL TV MIGRATION
    Burundi on Dec. 19 inaugurated a digital television project by Chinese media company StarTimes after its construction completed. The project has helped Burundi to become the first in the East African Community to achieve a complete migration from analog to digital television.
    The project will allow broadcasting of high-quality images and sounds and a wider national, regional and international coverage of the Burundi national television.
    On the same day, Chinese tech giant Huawei also marked the completion of its metropolitan area network project in Burundi, which involves laying 220 km optical fiber in the capital Bujumbura

    Major Chinese projects in sub-Saharan Africa in 2016-ecns

    Major Chinese projects in sub-Saharan Africa in 2016 1 2016-12-29 16:38XinhuaEditor: Li Yan ECNS App Download From electrified railways to hydro power plants, a number of Chinese projects continued to spring up and boost development in Africa this year amid blossoming Sino-African cooperation. The following is a Xinhua review on major Chinese-built or Chinese-funded infrastructure projects that began or finished construction in sub-Saharan Africa in 2016: ETHIOPIA-DJIBOUTI RAILWAY Ethiopia on Oct. 5 launched its first electrified railway linking its capital and Djibouti, with officials hailing the Chinese-built rail as the latest testament to the Sino-African friendship. The 752.7-km Ethiopia-Djibouti railway, also known as Addis Ababa-Djibouti railway, will avail landlocked Ethiopia a faster access to the sea (via Djibouti port), reducing travel time from seven days on roads to about 10 hours. The railway was hailed by Chinese Vice Premier Wang Yang as the "Tazara railway in a new era," referring to the railway linking Tanzania's Dar es Salaam with Zambia's Kapiri Mposhi that China sent over 50,000 workers to build in the 1970s despite its own economic difficulties. Constructed by China Railway Group and China Civil Engineering Construction Corporation, the railway features the use of a complete sets of Chinese equipment and standards. It is also the second trans-national railway built by Chinese in Africa, following the Tazara. NAIROBI-NAIVASHA RAILWAY Kenya on Nov. 19 launched the Nairobi-Naivasha Standard Gauge Railway (SGR) Project, being built by China Communications Construction Company (CCCC) and funded by China's Exim Bank. The project is the phase A of Nairobi-Malaba SGR Project and an extension of the Nairobi-Mombasa SGR. The 120.4-km line starts from the Kenyan capital city to Malaba, a border city between Kenya and Uganda. Speaking at the launch ceremony, Kenyan President Uhuru Kenyatta said the modern railway line would catalyze Kenya's industrial transformation and position the country as an investment hub. ABUJA-KADUNA RAILWAY The Abuja-Kaduna standard gauge railway, linking Nigeria's capital Abuja and the northwestern state of Kaduna, was open for commercial operation in July. The 186.5-km line was built by China Civil Engineering Construction Corporation with nine stations and a designed speed of 150 km per hour. The railway is part of the railway modernization initiative by Nigeria to replace the existing narrow gauge system with the wider standard gauge system, while allowing high-speed train operations on the railway network. NYERERE BRIDGE Tanzania's commercial capital Dar es Salaam added a new urban landmark on April 19 when the Chinese-built Nyerere Bridge, or Kigamboni Bridge, opened to traffic as the largest cable-stayed cross-sea bridge in East Africa. The 680-meter-long, six-lane bridge now offers a shortcut from Dar es Salaam's CBD to the Kigamboni district. Prior to its opening, many local residents have relied on wooden boat ferry to cross the creek separating the two places. Tanzanian President John Magufuli has named the bridge Nyerere in recognition of the country's founding leader -- Julius Nyerere. It was built by China Railway Construction Engineering Group in a joint venture with China Railway Major Bridge Group. GIBE III HYDRO POWER PLANT Ethiopia on Dec. 17 inaugurated the Gibe III hydro power plant, which will further enhance the country's reputation as a hydro powerhouse in East Africa. The Gibe III project boasts a generating capacity of 1,870 MW, which will raise Ethiopia's power generation capacity to more than 4,260 MW. Located in the Southern Regional State, Gibe III has been contracted by Salini Impregilo of Italy for the civil works, and Dong Fang Electric Corp. of China for the electromechanical works. A loan from the Industrial and Commercial Bank of China (ICBC) financed 60 percent of the cost. VICTORIA FALLS AIRPORT Zimbabwe's Victoria Falls International Airport, upgraded and expanded with support from China, was commissioned on Nov. 18 with the hope of ushering in more tourists to the country. The upgraded airport can now handle 1.5 million passengers per year, up from 500,000, and boasts new facilities including a new international terminal building, a new 4-km runway, extended parking areas for aircraft and new road networks. The airport is the gateway to Victoria Falls, a world heritage site. The project was done by China Jiangsu International and financed through a 150-million-U.S.-dollar-loan from China EXIM Bank. TEMA PORT AND KOTOKURABA MARKET Ghana's eastern port of Tema on Nov. 16 began expansion, undertaken by the China Harbor Engineering Company, amid a drive to become a more efficient gateway to Africa. Under the project, a total of 120 hectares of land would be reclaimed from the sea. The project will also see the upgrading of the two-lane Tema-Accra Expressway into a six-lane road to ease traffic flow. Ghana on Nov. 29 commissioned the new Kotokuraba market, whose construction was financed by China EXIM Bank and undertaken by China Railway Construction Engineering Group. The market in the ancient capital Cape Coast features modern facilities including a 200-capacity parking lot, a solar system for emergency lighting and CCTV security cameras. The market renovation and construction is expected to ease congestion in the former Kotokuraba market, which had suffered two major fires with heavy losses. BURUNDI'S DIGITAL TV MIGRATION Burundi on Dec. 19 inaugurated a digital television project by Chinese media company StarTimes after its construction completed. The project has helped Burundi to become the first in the East African Community to achieve a complete migration from analog to digital television. The project will allow broadcasting of high-quality images and sounds and a wider national, regional and international coverage of the Burundi national television. On the same day, Chinese tech giant Huawei also marked the completion of its metropolitan area network project in Burundi, which involves laying 220 km optical fiber in the capital Bujumbura. Related news Media gets a new look at Chinese companies in Africa2016-11-29 StarTimes DTV set to dominate Africa2016-11-29 China's role in Africa grows in Ebola's wake2016-10-27

    Friday, December 16, 2016

    Trump likely to trim official aid to Kenya, report suggests | The Star, Kenya

    US President-elect Donald Trump with outgoing President Barack Obama in the Oval Office of the White House in Washington on November 10 /REUTERS
    US President-elect Donald Trump with outgoing President Barack Obama in the Oval Office of the White House in Washington on November 10 /REUTERS
    The US is likely to cut a multibillion-shilling annual aid to Kenya under the Donald Trump presidency, a new report suggested yesterday.
    The Economic Insight: Africa Q4 2016 report, commissioned by the Institute of Chartered Accountants in England and Wales, says there are signs of the Trump's administration adopting an expansionary fiscal policy. This, coupled with spending cuts to accommodate increased budget for infrastructure development, is likely to cut off official aid streams to Africa, the accountancy and finance body warns.
    The analytical report – produced by macroeconomic and industrial development forecaster Oxford Economics – focused on Kenya, Tanzania, Ethiopia, Nigeria, Ghana, Ivory Coast, South Africa and Angola.
    “A Trump presidency raises the risk of the world’s largest economy reining in development aid thus affecting dependent countries such as Ethiopia, Kenya, Tanzania, Nigeria and DRC,” ICAEW said in a press statement.
    The US is Africa's largest bilateral official aid benefactor with an inflow of about $9 billion (about Sh918.90 billion), followed by the UK ($4 billion or Sh408.40 billion) and France ($2 billion or about Sh204.20 billion), the estimates by the Organisation for Economic Co-operation and Development for 2015 shows.
    Official development aid receipts into East Africa were largest in Ethiopia at $3.5 billion (about Sh357.35 billion), followed by Kenya at $2.5 billion (Sh255.25 billion). Official aid to Tanzania and Uganda was estimated at $1.5 billion (Sh153.15 billion) each.
    “Aid is one of the main channels through which a change in US policy under the new president could impact Africa,” ICAEW regional director for Middle East, Africa and South Asia Michael Armstrongsaid in the statement. “Policymakers and businesses across the continent will be keen to see President-elect Trump’s plans for development policies once he takes office (from January 20).”
    Taxation revenues are, however, the main financier of the Kenya government's annual budget. For this financial year's Sh2.02 trillion budget, for example, 65.84 per cent (or Sh1.33 trillion) is expected to be funded by the taxpayers, estimates by the National Treasury indicates. Loans and grants from foreign governments and international organisations are this year estimated at Sh67.27 billion – comprised of Sh50.45 billion in projected loans and Sh16.82 billion in grants.
    In the four months to October, the Treasury received Sh11.88 billion in foreign loans and Sh1.31 billion in grants, the statement of Actual Revenues and Net Exchequer Issues shows.
    The Trump's administration could also affect trade relations with Africa through Africa Growth and Opportunity Act framework, analysts at ICAEW say. Trade volumes between the US and Africa have been dwindling, hurt by shale boom which cut the need for crude oil.
    “Trade is another channel likely to be affected by the new US administration,” Armstrong said. “Considering the president-elect’s protectionist stance, African economies could be harmed by tighter policies towards agricultural and manufacturing trade.”
    Thank you for participating in discussions on The Star, Kenya. Note that:
    • Unwarranted personal abuse and defamatory statements will be deleted.
    • Strong personal criticism is acceptable if justified by facts and arguments.
    • Deviation from points of discussion may lead to deletion of comments.

    Thursday, June 23, 2016

    Djibouti faces new kid on the block when Ethiopia turns to Barbara


    • 23 June 2016
    •  
    • From the sectionBusiness


    Berbera has a long way to go before rivalling Djibouti. For now, many of the boats using its quays are simple dhows from Yemen, and slightly larger boats shipping a ragged assortment of goodsImage copyrightJAMES JEFFREY
    Image captionBerbera has a long way to go before rivalling Djibouti


    Despite Ramadan, there is no slackening at Djibouti's ports. Under the relentless sun, whippet-thin men glistening with sweat work the docks, taking what refuge they can in the shade cast by machinery and stacks of cargo.
    By contrast, things are much quieter 300km southwards in Berbera, on the Somaliland coast, where dhows from Yemen carrying crates of onions moor alongside a few larger, more modern ships.
    But Berbera Port's more sedate pace is set to change drastically. In May, Dubai-based DP World was awarded the concession to manage and expand Berbera for 30 years, a project valued at about $442m (£302m).
    The deal could return Berbera to a major Horn of Africa trading hub, providing competition for Djibouti, which has come to dominate trade in the region during the last decade.


    Berbera has a long way to go before rivalling Djibouti. For now, many of the boats using its quays are simple dhows from Yemen, and slightly larger boats shipping a ragged assortment of goodsImage copyrightJAMES JEFFREY
    Image captionMany boats currently using Berbera Port are simple dhows from Yemen


    But those running Djibouti's ports are not overly concerned. In fact, they seem to welcome Berbera's renaissance.
    "East Africa needs more ports. We want the region to get more done," says Aboubaker Omar, chairman and chief executive of Djibouti Ports and Free Zones Authority (DPFZA). "Berbera is welcome to come and share the business."
    Africa contains 17 landlocked countries, with those toward the continent's east coast having fewer port options than those nearer the west coast, Mr Omar explains.
    Between Port Sudan to the north of the Horn of Africa, and Mombasa to the south - a total of 6,000km of coastline - Djibouti is the only other major port.


    Djibouti portImage copyrightJAMES JEFFREY
    Image captionDjibouti's port authority does not feel threatened by Berbera's possible renaissance


    "There is no competition, so you hear people talking of Djibouti having a monopoly," Mr Omar says. "That's not accurate, we even handle shipping for countries with ports, but with more options people can compare and then appreciate our performance."

    Banking on Berbera

    DP World's gambit is the biggest single investment in the self-declared but internationally unrecognised republic, representing both an economic and political boon to Somaliland.
    Cut off from global financial institutions, Somaliland's government operates on a budget of about $250m, with the private sector responsible for rebuilding much of the country's infrastructure since the end of a civil war with Somalia in 1991 that left 90% of the capital, Hargeisa, in ruins.
    For now, the country's fragile economy survives on huge remittances from its diaspora and by exporting vast quantities of livestock to the Middle East.
    "The government does not have the funds to develop the port," says Ali Omer, general manager of Berbera Port Authority. "This agreement will benefit the Horn of Africa and boost trade with Arab countries."
    According to the deal, Dubai will also support Somaliland's fisheries industry, which has about 850km of coastline waiting to be tapped, and help refurbish the ramshackle 268km road running from Berbera to the border with Ethiopia.
    And Ethiopia could just be the start.


    Ethiopian truckers waiting in the shade in Djibouti before setting off back to Ethiopia with imported goodsImage copyrightJAMES JEFFREY
    Image captionEthiopian truckers will have more options if Berbera grows to rival Djibouti


    "It would be a gateway to Africa, not just Ethiopia," says Sharmarke Jama, a trade and economic adviser for the Somaliland government involved in negotiations on the port deal. "The multiplying benefits for Somaliland's economy could be endless."

    Ethiopian catalyst

    "Ethiopia is the region's locomotive," says Ethiopia-born Dawit Gebre-Ab, director of Europe and North America for DPFZA, who this month will receive an MBE for promoting trade relations between the UK and Djibouti. "With its expansion in manufacturing, Ethiopia could become the China of Africa."
    That means a lot of goods and raw materials in transit. Already about 90% of Ethiopia's trade goes through Djibouti: in 2005, this amounted to two million tonnes and now stands at 11 million tonnes. During the next three years, it is set to increase to 15 million tonnes.
    Ethiopia's apparently relentless expansion relies on access to the sea: a source of immense strategic anxiety ever since Ethiopia lost its only port to Eritrean independence in 1993.
    As a result, Ethiopia has long been looking to assuage its dependence on Djibouti, which scoops at least $300m in port fees from it every year.
    Ethiopia has strengthened bilateral relations with Somaliland, signing various memoranda of understanding (MOUs) during the past couple of years, including one stipulating about 30% of its imports shifting to Berbera.
    "There's enough going on in this region for Berbera to get used without causing Djibouti problems," says Ali Toubeh, a Djiboutian entrepreneur whose container company is based in Djibouti's free trade zone. "Demand from Ethiopia will get so big, they're going to need Port Sudan and Kismayo [in Somalia] too."

    Horn of Africa ports



    Africa ports



    Meanwhile, a new 756km railway running between Ethiopia and Djibouti, with further railway lines and joint projects such as an oil pipeline in development, testify to the two countries continuing to remain firmly integrated partners.

    Port of the moment

    The Horn of Africa coastline has seen ports come and go in importance throughout history, often because of external influences.
    Zeila, now a small sleepy rundown town on Somaliland's coast, dominated trade for hundreds of years until a power shift within then-Abyssinia - present-day Ethiopia - saw Berbera gain in importance during the 16th Century.
    Suakin, on the Sudan coast, once flourished until subsiding into irrelevance by the end of the 19th Century, when the British preferred to develop Port Sudan, since its deeper waters could take larger ships.
    During the early 1990s Djibouti Port emerged as an important transhipment hub of containers for the Red Sea ports of Aden, Assab, Massawa and Port Sudan. It then grew even faster after 2000 when it came under foreign management - DP World, no less.
    There is palpable hope and excitement in Somaliland about what the DP World deal could achieve, reflective of a trend across much of the Horn of Africa.


    The 268km ramshackle road running from Berbera to the border with Ethiopia needs a lot of work before it can handle the sort of volume of trade traffic that Somaliland hopes for from the deal with DP WorldImage copyrightJAMES JEFFREY
    Image captionThe road from Berbera to the border with Ethiopia needs a lot of work


    Increasing economic integration between the likes of Ethiopia, Djibouti and Somaliland is bringing mutual benefits and stability to a part of the world long known for the opposite.
    "The Horn of Africa has made dramatic progress in the past two decades," says Matt Bryden, a Horn of Africa political analyst and executive chairman of Sahan Research, a Nairobi-based research institute. "But there remain numerous challenges."
    These include Somalia cementing stable governance, resolving the question over Somaliland's statehood, the "cold peace" between Ethiopia and Eritrea, and Ethiopia's balancing act between its commitment to developmental state ideology and democratisation and human rights.
    But it appears there is room for cautious optimism.
    "Economic integration will eventually benefit Somalia," Mr Bryden says. "Eritrea will inevitably be drawn into closer economic union with the wider Horn of Africa region as well."