On 1 January 2024, Ethiopia and Somaliland signed a landmark agreement granting Ethiopia access to the Red Sea through a 20-kilometer strip of Somaliland coastline, enabling the construction of a naval base for 50 years. In return, Somaliland is set to receive shares in Ethiopian Airlines and formal recognition as an independent state. This deal aims to alleviate Ethiopia’s reliance on the Port of Djibouti, which handles 95% of its trade but presents logistical and cost challenges. The agreement has provoked diplomatic friction with Somalia, which views it as a threat to its sovereignty and has reacted with protests and efforts to counterbalance Ethiopia’s influence with regional countries support. Additionally, the establishment of a naval base raises security concerns, particularly in light of the upcoming withdrawal of the African Union Transition Mission in Somalia and potential regional instability.