Somalia boosts maritime investment with Hobyo Port and Freezone development

Somalia is demonstrating its commitment to seizing economic opportunities in the maritime industry with the development of Hobyo Port.

The President of Galmudug State, Ahmed Abdi Kariye, attended the official signing of an 80-year agreement between Hobyo Investment Company and Turkish conglomerate Metag Holding to develop Hobyo Port in Mogadishu.

The signing ceremony was attended by prominent figures including Mahad Mohamed Salad, former director of the National Intelligence Service (NISA), and prominent businessman Liban Ahmed Hassan, who is eyeing the presidency of Galmudug.

Federal ministers, lawmakers and business leaders also attended, underlining the importance of the President's visit.

President Kariye highlighted the port's potential to transform Somalia's central coast into a major trade hub.

He emphasised the strategic importance of Hobyo Port, particularly for Ethiopia, which has no direct seaport and relies on Djibouti for 90% of its imports and exports.

"Ethiopia has no port and Hobyo represents an exceptional business opportunity. We will soon overcome the challenges we face and Hobyo will become one of the largest ports in Somalia, serving several cities across the country," he said.

Former NISA Director Mahad Salad commended the port construction committee for reaching this critical initial stage, paving the way for the official start of the development of Hobyo Port.

Founded in 1967, Metag Holding is a Turkish conglomerate with extensive experience in infrastructure projects across Africa, including projects in Somalia, Djibouti and Kenya.

The company is known for its expertise in marine construction and has built a solid reputation for delivering docks, piers and coastal facilities. In Somalia, Metag has also been involved in the construction of military camps, airfields and water supply systems.

The development of Hobyo Port is expected to alleviate congestion at Mogadishu's overburdened port, redistributing trade and enhancing efficiency within Somalia's maritime trade network. This project is projected to bring significant economic benefits to Galmudug, creating jobs, improving infrastructure, and supporting local businesses. Hobyo is poised to become a vital export point for Somalia's livestock and agricultural products, benefiting farmers and traders in the region.

Hobyo's strategic position along key maritime routes linking the Middle East, Asia, and East Africa places it at the centre of a burgeoning trade network.

The construction of Hobyo Port has been a key priority for the Galmudug government and is regarded as an essential step toward the region's economic development. The president reaffirmed his administration's commitment to realizing this long-awaited vision, which he described as a fundamental aspiration for the people of Galmudug.

Furthermore, President Qoor Qoor encouraged investors and businesses to take advantage of the opportunities presented by Hobyo Port, noting that the final agreement signifies the start of a new era for the region's trade capabilities.

In a related development, presidential candidate Liibaan Ahmed Hassan hosted a dinner meeting last night with the businessmen overseeing the construction of Hobyo Port and representatives from Metag Holding. During the ceremony, it was acknowledged that Liibaan played a crucial role in providing the initial funding for the port's construction, which inspired many and helped raise $29 million from Somali businessmen.

The meeting allowed Liibaan to express his gratitude and discuss with the project stakeholders the urgent need to expedite construction so that the people of Galmudug can fulfil their needs for the port and achieve economic self-sufficiency. He also highlighted the area's political significance and the emerging opportunities in Galmudug, which is expected to soon produce the first oil discovered in Somalia.

Somalia boasts among the biggest coastline in Africa but internal strife and terror threats have shielded the country from tapping into the maritime business potential.