Somaliland’s Berbera: India’s Strategic Gateway to East Africa’s Growing Trade and Maritime Security

By Dishant Shah

For centuries, the Horn of Africa has served as a vital maritime corridor, connecting global trade routes and shaping geopolitical dynamics. Today, Berbera is emerging as a strategic hub for India’s trade and security interests in the region.

A Rising Trade and Logistics Powerhouse

Located at the crossroads of Africa, the Middle East, and Asia, Berbera links the Indian Ocean to the Red Sea and the Mediterranean, making it a prime location for trade. In an era of disrupted shipping routes – whether due to tensions in the Red Sea or piracy threats – Berbera offers a secure, efficient alternative.

With a 800-kilometer (500-mile) coastline and a reputation for stability, Berbera provides a safer route compared to high-risk areas near Yemen. Since 2016, DP World has invested over US$442 million in modernizing the port, transforming it into a high-capacity logistics hub.

Today, Berbera ranks second in Africa on the World Bank’s Container Port Performance Index, trailing only Djibouti. The port currently handles 500,000 TEUs annually, with expansion plans targeting 2 million TEUs in the near future.

For Indian businesses, this translates to faster, more reliable access to East Africa’s growing markets. India-Africa trade reached US$98 billion in 2022–23, nearly doubling from 2017–18.

With Africa emerging as a major destination for Indian pharmaceuticals, textiles, and machinery, Berbera has the potential to become a key transit hub.

Recognizing this opportunity, Somaliland has launched a free trade zone, offering tax incentives and streamlined customs clearance – an open invitation for Indian exporters seeking to reduce costs and expand their footprint in the region.

Strengthening India’s Maritime Security

Beyond trade, Berbera is strategically positioned to bolster India’s maritime security in the Gulf of Aden, a critical shipping route where over 21,000 vessels transit annually, carrying nearly 12 percent of global trade. However, the region remains vulnerable to piracy and illicit trafficking.

Since 2008, the Indian Navy has escorted more than 4,000 ships in these waters.

A deeper partnership with Berbera could enhance India’s naval presence, ensuring safer shipping lanes and countering China’s growing influence in East Africa. While China expands its military and commercial footholds in Djibouti, Berbera presents India with a strategic counterbalance.

The Geopolitical Opportunity

The UAE’s investment in Berbera is already reshaping regional power dynamics, limiting Iran’s influence in the Horn of Africa. With its strong ties to the UAE and other Gulf nations, India has a unique opportunity to strengthen its regional footprint – without the diplomatic complexities of formally recognizing Somaliland.

Of course, challenges remain. Berbera competes with established ports like Djibouti, Mombasa, and Dar es Salaam.

Somaliland’s international status adds another layer of complexity. However, if India moves decisively – investing in infrastructure, logistics, and trade partnerships – Berbera could become a game-changer for its economic and strategic ambitions in Africa.

The potential is undeniable. The only question is: Who will act first?

Dishant Shah is a partner at Legion Exim, a company specializing in facilitating the export of high-quality engineering products directly sourced from manufacturers in India to Africa. His areas of expertise include new business development and business management.