Addis Abeba — Ethiopia and Djibouti have agreed to strengthen cooperation aimed at improving the performance of the Doraleh Port, Ethiopia's primary maritime gateway, following discussions held on 26 February between Ethiopia's Ambassador to Djibouti, Legesse Tulu, and Abdullahi Adaweh, Chief Executive Officer of the Doraleh Port.
According to Ambassador Legesse, during the discussion he highlighted the "significant regional importance of the strategic relationship between Ethiopia and Djibouti," expressing "gratitude for the commitment of the Djiboutian government to elevate the relationship to a higher level."
He further noted that the port administration, "by streamlining operations, has created a conducive environment for the implementation of key performance indicators in the service it is providing for Ethiopian goods."
The two sides also agreed to strengthen cooperation to further improve the port's performance and ensure it "makes a significant contribution to regional integration," the Ambassador added.
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Ethiopia, Africa's second-most populous country, conducts the overwhelming majority of its foreign trade through Djibouti. Data from the Institute of Foreign Affairs (IFA) indicate that since the outbreak of the Ethio-Eritrean war in 1998, "Ethiopia has conducted 95% of its foreign trade through the Port of Djibouti," with alternatives such as Port Sudan and Kenya's Lamu port used only occasionally.
In 2025 alone, the volume of Ethiopian foreign trade cargo handled through Djibouti reached 9.5 million tons, while port services accounted for an estimated 80% of Djibouti's national income. Ethiopia is estimated to pay between USD 1.5 and 2 billion annually in port-related fees, nearly one-third of its projected 2025 export earnings of USD 5.3 billion.
Prime Minister Abiy Ahmed has previously remarked that "the amount of money spent on these charges could be used to build the Renaissance Dam every three years."
Doraleh, Egypt, and rising strategic stakes
The renewed Ethiopian-Djiboutian engagement over Doraleh comes amid heightened geopolitical competition around the Red Sea and the Bab al-Mandeb Strait, a vital maritime corridor linking Europe, the Middle East, Asia, and East Africa.
Multiple reports indicate that in December 2025, Egypt reached agreements to upgrade the Red Sea port of Assab in Eritrea and the Gulf of Aden port of Doraleh in Djibouti. These agreements reportedly include expanding port capacity, creating berths for warships, and establishing facilities capable of hosting small but elite military contingents. Both ports lie close to the Bab al-Mandeb Strait, underscoring their strategic value.
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Ethiopia, which borders both Eritrea and Djibouti but remains landlocked, has begun to oppose efforts by neighboring states to establish territorial or military dominance along the Red Sea, its principal maritime outlet. The Egyptian-Djiboutian agreement also covers improvements to road networks linking Ethiopia to Doraleh, further deepening Addis Abeba's reliance on the port.
During an official visit to Djibouti, Egypt's Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel Al-Wazir, oversaw the signing of major cooperation agreements with Djibouti in maritime transport, logistics zones, renewable energy, and port development. The visit involved senior officials from the Djibouti Ports and Free Zones Authority, alongside executives from leading Egyptian infrastructure firms.
Among the signed deals were agreements for a new multi-purpose terminal, a regional logistics hub in Djibouti's free zone, and the Green Port Solar Project at Doraleh, intended to provide clean, stable energy for port operations and reduce exposure to global fuel price volatility.
For Ethiopia, while Doraleh remains the most viable option for external trade due to proximity and the Ethio-Djibouti railway, deepening dependence also exposes the country to rising logistics costs that undermine export competitiveness. Ethiopian agricultural exports to the Middle East, for instance, are often more expensive than those from Sudan and other coastal African states.
