June 9, 2025 | Ayro TV
Mogadishu, Somalia – Senior executives from DP World, a global leader in port and logistics management, are expected to arrive in Mogadishu to address growing concerns from the Federal Government of Somalia regarding port concessions, particularly the management of Bosaso Port in Puntland. The visit follows reports from Puntland Post highlighting tensions over a 2017 agreement that granted P&O, a subsidiary of DP World, a 30-year concession to operate Bosaso Port under the administration of former Puntland President Abdiweli Mohamed Ali.
The Federal Government has expressed unease over the terms of the concession, which was signed without broader federal consultation, raising questions about transparency, revenue sharing, and sovereignty over Somalia’s strategic maritime assets. Bosaso Port, located in the semi-autonomous state of Puntland, is a critical hub for trade in the Horn of Africa, handling significant volumes of goods and contributing to regional economic activity. The 2017 deal has been a point of contention, with Mogadishu seeking greater oversight and alignment with national interests.
DP World’s involvement in Somalia extends beyond Bosaso, with the company also managing the Berbera Port in Somaliland under a $400 million investment deal. At the 2025 World Governments Summit in Dubai, Somaliland President Abdirahman Mohamed Irro praised DP World’s contributions, emphasizing the port’s role in enhancing trade connectivity and fostering economic growth in the region. However, the Federal Government’s concerns reflect broader sensitivities about foreign-managed port operations, particularly in light of Somalia’s efforts to assert control over its national infrastructure amid ongoing security and political challenges.
The visit by DP World executives comes at a critical time for Somalia, as the country navigates complex regional dynamics and economic development initiatives. The “New Mogadishu” development project, launched by President Hassan Sheikh Mohamud in December 2024, includes plans for a new port and economic zone aimed at transforming the capital’s economic landscape. Valued at $650 million, the initiative underscores Somalia’s ambition to modernize its infrastructure and attract investment. However, the federal government is keen to ensure that foreign partnerships, such as those with DP World, align with national priorities and benefit local communities.
Security concerns also loom large, with Mogadishu’s strategic assets, including ports and airports, remaining targets for al-Shabaab attacks. Recent incidents, such as the November 2024 mortar attack on Mogadishu’s international airport claimed by al-Shabaab, highlight the volatile environment in which these discussions are taking place. The federal government is likely to press DP World on how its operations can support Somalia’s stability and economic resilience while addressing local concerns about job creation and revenue distribution.
DP World, led by Group Chairman and CEO Sultan Ahmed bin Sulayem, has a global reputation for transforming ports into efficient trade hubs. The company’s 2024 container handling reached a record high, up 8.3% despite disruptions in the Red Sea, showcasing its operational expertise. In Somalia, DP World’s investments are seen as vital for economic growth, but the federal government is expected to seek assurances that these partnerships prioritize Somali interests, particularly in terms of equitable revenue sharing and capacity building for local workers.
The outcome of the talks could set a precedent for how Somalia balances foreign investment with national sovereignty. As Mogadishu works to rebuild and stabilize, the management of its ports—key gateways for trade and economic development—remains a critical issue. The federal government’s push for greater oversight reflects a broader effort to unify Somalia’s fragmented economic and political landscape, while DP World’s expertise offers an opportunity to enhance the country’s global trade connectivity.
As the DP World delegation prepares to meet with Somali officials, stakeholders across the region will be watching closely. The discussions could pave the way for a renegotiated framework that addresses federal concerns while maintaining the momentum of Somalia’s economic transformation. For now, Mogadishu remains a focal point for both opportunity and challenges, as Somalia seeks to reclaim its place as a key player in regional trade.
This article is based on recent reports and posts on X, including information from Puntland Post. For further details, visit ayrotv.com.
