Berbera: A Strategic Gateway for India’s Trade and Security in the Horn of Africa

[Deeq A.]

The Port of Berbera, situated in Somaliland along the Gulf of Aden, is fast emerging as a vital hub in the Horn of Africa, offering strategic and economic opportunities for countries seeking to secure their trade routes and expand geopolitical influence. With its 500-mile coastline and proximity to key global shipping lanes, Berbera provides a stable and secure alternative to the high-risk zones near Yemen. For India, Berbera represents a strategic opportunity to strengthen its trade ties with Africa, enhance maritime security, and counter destabilizing forces in the region, particularly as the global trade environment grows increasingly volatile.
Berbera’s significance stems from its geographical location at the crossroads of Africa, the Middle East, and Asia. The port lies on a critical maritime corridor connecting the Indian Ocean with the Red Sea and the Mediterranean, making it an ideal gateway for trade between these regions. In recent years, this potential has been unlocked by substantial investments from DP World, the Dubai-based global logistics company. Since 2016, DP World has poured over $442 million into modernizing Berbera, transforming it from a modest facility into a state-of-the-art deepwater port. This transformation includes the construction of a container terminal with an annual capacity of 500,000 TEUs (Twenty-Foot Equivalent Units) and plans to increase capacity to 2 million TEUs in the near future.

Berbera’s upgraded infrastructure and efficient operations have earned it the distinction of being ranked second in Africa on the World Bank’s Container Port Performance Index, trailing only Djibouti. This efficiency has reduced turnaround times for vessels and made Berbera a reliable alternative to ports in Yemen, which remain plagued by instability due to the ongoing conflict. Ports such as Hodeidah and Aden, under the control of Houthi rebels backed by Iran, have become hotspots for smuggling, military activities, and threats to maritime trade. For India, which depends heavily on secure shipping routes through the Gulf of Aden for its energy imports and trade with Europe and Africa, Berbera offers a stable and viable solution to mitigate risks.

India’s trade with Africa has been growing steadily, with bilateral trade reaching $98 billion in 2022–23, up from $56 billion in 2017–18. Africa is now one of India’s most important trading partners, with key imports including crude oil, precious metals, and agricultural products, while Indian exports to the continent include pharmaceuticals, machinery, and textiles. However, much of this trade depends on maritime corridors that are increasingly vulnerable to piracy, terrorism, and geopolitical tensions. Berbera’s stability, coupled with its strategic location, provides an opportunity for India to diversify its trade routes and reduce its reliance on traditional hubs such as Djibouti, which are often congested and expensive.

Beyond trade, Berbera offers India a platform to enhance its maritime security and strengthen its presence in the region. The Gulf of Aden is a vital chokepoint for global trade, with more than 21,000 ships transiting the region annually, accounting for nearly 12% of global trade. However, the area remains a hotspot for piracy and smuggling. Since 2008, the Indian Navy has been actively involved in anti-piracy operations in the Gulf of Aden, escorting over 4,000 ships and safeguarding critical maritime routes. Partnering with Somaliland and using Berbera as a logistical base for such operations could enhance India’s naval capabilities and ensure the security of its interests in the region. This aligns with India’s broader Indo-Pacific strategy, which emphasizes the importance of free and open trade routes in fostering regional stability.

The geopolitical dynamics of the region further underscore Berbera’s importance. The UAE’s investment in the port is part of a larger strategy by the Gulf Cooperation Council (GCC) to counter Iran’s influence in the Horn of Africa. Iran’s support for the Houthi rebels in Yemen has destabilized the region, turning Yemeni ports into hubs for smuggling weapons and launching attacks on shipping vessels. For India, which has close ties with the UAE and other GCC countries, aligning with Berbera’s development efforts could strengthen its position in countering regional threats and ensuring stability in the Gulf of Aden. This is particularly important as China continues to expand its influence in East Africa, including its military base in Djibouti. Berbera offers India a chance to establish a counterbalance to China’s growing presence and assert its own strategic interests in the region.

Economically, Berbera’s transformation has the potential to unlock significant opportunities for Indian businesses. Somaliland has established a free trade zone near the port, offering tax incentives and streamlined customs processes to attract foreign investment. Indian companies could leverage this zone to establish manufacturing hubs and enhance trade with East African markets such as Ethiopia, Kenya, and Somalia. India is already a major supplier of pharmaceuticals and textiles to Africa, accounting for 16.1% of pharmaceutical imports and 5.6% of textile imports to the continent in 2022. Using Berbera as a gateway could help Indian exporters reduce transportation costs and increase their market share in the region.

India’s engagement with Somaliland and Berbera could also extend to infrastructure development, capacity building, and energy cooperation. By investing in roads, railways, and logistics networks connecting Berbera to the hinterlands of East Africa, India could facilitate smoother trade flows and enhance regional connectivity. Training Somaliland’s workforce in port management, logistics, and security could further solidify India’s role as a trusted partner. Additionally, exploring opportunities to import liquefied natural gas (LNG) and other resources through Berbera could strengthen India’s energy security.

While Somaliland’s lack of international recognition poses certain challenges, its political stability and effective governance make it an attractive partner. For India, engaging with Somaliland does not necessitate formal recognition; instead, partnerships can be fostered through multilateral platforms such as the African Union and the Indian Ocean Rim Association (IORA). This pragmatic approach would allow India to support Somaliland’s development while avoiding diplomatic complexities.

In conclusion, the Port of Berbera is emerging as a strategic gateway in the Horn of Africa, offering India a unique opportunity to enhance its trade, security, and geopolitical influence. Its stable environment, modern infrastructure, and pivotal location make it an ideal partner for India’s efforts to secure its maritime interests and deepen its engagement with Africa. By investing in Berbera and fostering closer ties with Somaliland, India can not only diversify its trade routes but also contribute to regional stability and economic growth. As global trade continues to evolve, Berbera stands out as a cornerstone for India’s strategic ambitions in the Horn of Africa and the wider Indo-Pacific region

Source Goachronicle

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