Djibouti has offered Ethiopia access to its Port of Tadjoura as a potential solution to the ongoing dispute between Ethiopia and Somalia, Djiboutian Foreign Minister Mahamoud Ali Youssouf said.

The proposal comes in response to tensions sparked by Ethiopia's recent memorandum of understanding (MOU) with the breakaway region of Somaliland, which Somalia views as an infringement of its sovereignty.

Youssouf told VOA that Djibouti is prepared to offer Ethiopia the use of a newly built port and corridor to the northern border of Djibouti. He added that Djibouti is willing to consider joint management of the port with Ethiopia.

“We are offering 100 percent management for a port in the north, a new corridor that is already built,” said Youssouf in an interview with the BBC.

The Port of Tadjoura, located about 100 kilometres from the Ethiopian border, was opened in 2017 following a $90mn investment by the Djiboutian government. It can accommodate ships up to 65,000 dwt and features two berths with a depth of 39 feet (nearly 11.9 metres).

Ethiopia, landlocked since Eritrea's secession in 1993, currently relies on Djibouti's main port for up to 90% of its international trade; however, it has often complained of the port’s high fees. The country's push for direct sea access has heightened regional tensions.

Under the controversial MoU with Somaliland, Ethiopia would lease 20 kilometres of coastline in exchange for potential recognition of Somaliland's independence. This agreement has met with strong opposition from Somalia.

Somalia's President Hassan Sheikh Mohamud has stated his country is willing to grant Ethiopia commercial sea access, but not a naval base. He likened the potential arrangement to how other landlocked countries in the region access seaports through neighbouring states.

Djibouti's proposal, presented to Ethiopian leaders a month ago, has reportedly received a positive initial response. Youssouf emphasised that the offer does not include a naval base for Ethiopia, citing space constraints and the need to maintain a conducive environment for existing military presences in Djibouti.

The Djiboutian initiative comes as regional tensions are further complicated by Egypt's recent decision to supply arms to Somalia, following a security agreement signed between the two nations in early August. This development is linked to Egypt's ongoing dispute with Ethiopia over the construction of the controversial $5bn GERD dam on the Blue Nile.

Youssouf, who is also a candidate for the African Union Commission chairperson, stressed that Djibouti's proposal aims to restore the good relationship that “previously existed between Ethiopia and Somalia.”

As negotiations continue, Ethiopian Foreign Minister Taye Atske Selassie expressed confidence that Ethiopia's legitimate interests in securing dependable sea access will be fulfilled peacefully through cooperation with neighbouring countries.

The foreign ministries of Somalia and Ethiopia have not yet commented on Djibouti's proposal.