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

Research report

Written by Adria Rius

Image credit:Photo credit: Frank Matsaert MBE and Dominic McVey MBE, TradeMark East Africa visit to Tog Wajaale border between Somaliland and Ethiopia, September 2021

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

The potential opportunities are, first, Somaliland could address domestic non-tariff barriers to trade by 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.