Topic: Somaliland

Ethiopia signed a memorandum of understanding with the breakaway region of Somaliland to lease coastline for a naval base and commercial port. In exchange, Ethiopia would recognize Somaliland as an independent state. The Somali government nullified the deal, calling it a violation of its sovereignty. The move is seen as a strategic play involving BRICS nations to establish a presence near the Red Sea.

Egypt faces a 30% loss in hard currency revenue due to the decline in Suez Canal transit fees caused by Houthi attacks. Meanwhile, Ethiopia signed a memorandum with Somaliland to gain access to the Port of Berbera for a military base and commercial operations.