Why Should the U.S Recognize Somaliland?

For over three decades, the Republic of Somaliland has operated as a functioning democracy in one of the most volatile and politically unstable regions of the world. Yet despite maintaining stable governance structures, conducting regular free and peaceful elections, and building effective state institutions, Somaliland remained diplomatically isolated for more than three decades. However, on the 26th of December, following the State of Israel’s full diplomatic recognition, Somaliland is set on a whole different state of affairs.

This diplomatic victory was historic, and millions of Somalilanders celebrated across the world. On the 30th of December, at an emergency UN Security Council meeting, the Deputy American Envoy at the UN shocked many when she stated, “Israel has the same right to conduct diplomatic relations as any other sovereign state.” This was a calculated move and a clear indication for other states to follow suit, and most importantly a deviation from the usual nonsensical “One-Somalia” policy statement that the State Department’s Africa Bureau puts out. In this article, I will briefly highlight why the United States should break with convention and establish formal diplomatic relations with Somaliland in the near future, and should follow that of its ally, for the sake of America’s interest.

A Beacon of Hope in Turbulent Region

While Somalia continues to deal with the threat of terrorism from Al Shabab, ISIS, clan conflicts, and weak governance more than 30 years after the fall of the former Somali Republic, Somaliland has quietly built a functioning democracy. Somaliland re-instated its independence in 1991 following the fall of the Barre regime, and since then has held several free and peaceful presidential, parliamentary, and local council elections, maintained its own currency, flag, and established effective security forces.

Somaliland’s stability is not merely relative, it's remarkable by any standard. During the early stages of state-formation, the country has successfully managed clan tensions that have torn apart other states in the Horn of Africa, though challenges remain, including eastern Sool and parts of Awdal region. Overall, the Somaliland government succeeded in controlling the majority of its colonial-era territory, collecting taxes, and providing basic government services to its citizens.

In a region crippled by violent extremism and piracy, Somaliland has proven itself a reliable partner in “the war against terror”. The Somaliland security forces have so far prevented terror groups, such as Al Shabab and ISIS, from establishing a foothold in its territory.

It is about the Strategic Geography

Due to the very geographic location of Somaliland, that alone makes it invaluable to American strategic interests in the region. Somaliland is positioned on the Gulf of Aden through the Red Sea, one of most important shipping lanes in the world with over 12 percent of global trade, and around $1 trillion worth of goods transiting there annually. In addition to that, the Port of Berbera, recently modernized with over $442 Million of UAE investment, serves as a crucial commercial hub and potential military facility for the American armed forces under the AfRICOM. Given the recent Houthi disruptions in the Red Sea, the Berbera Port offers a logistical alternative for securing America and its European allies’ commercial interests.

Moreover, the Chinese Communist Party’s influence in the Horn of Africa has grown over the past decade with Beijing establishing its first-ever overseas military base in Djibouti and investing massively in regional infrastructure, including ports and railways in both Djibouti and Ethiopia. Hence, Somaliland in general and Berbera in particular offers the United States a counterweight to this growing Chinese presence. Both the previous administrations and the current government of Somaliland have consistently shown pro-Western stance, including establishing diplomatic relations with Israel, and would welcome deeper and meaningful American engagement.

Moreover, members of the Trump administration and senior US politicians, including Ted Cruz have publicly called for US recognition of Somaliland. A plausible establishment of a military presence in Berbera would give the United States a much-needed and sustainable foothold in monitoring regional security threats from the Houthis and other menacing actors.

Unique History, Precedent, and Legal Foundations

Some critics, including member states of the UN argue that recognizing Somaliland would violate international law or set dangerous precedents for secessionist entities around the world, and in Africa in particular. However, this is a facile argument. Somaliland's claim to independence rests on its pre-1960 borders as the former British Somaliland Protectorate. On the 1st of July, 1960, Somaliland voluntarily joined with Italian Somalia to form the Somali Republic. This union was never ratified through proper constitutional processes and was rejected by Somalilanders in the 1961 referendum.

When the Barre regime collapsed in 1991, Somaliland effectively returned to its pre-1960 union status. Unlike other breakaway entities, Somaliland is not seeking to establish new borders or secede from a functioning state. However, it is reclaiming independence from a state that no longer exists and from which it was never legally incorporated in the first place.

In 2005, a fact-finding mission from the African Union stated that the Somaliland case is “unique in African political history.” and that the country does not violate the Cairo Declaration on colonial borders, because it existed before with defined borders. Most importantly, the “pandora box” argument does not apply to Somaliland. The Mission concluded that the African Union should find a way to deal with the Somaliland case.

A Brief Economics Case

At the moment, the Somaliland business community has very limited contact with their American counterparts. US businesses cannot fully engage with Somaliland because of the lack of American engagement on the ground, limiting trade and investment opportunities. Somaliland possesses natural resources, including critical rare earth minerals, oil and gas reserves, but cannot access international financial markets to take advantage of its potential due to the lack of diplomatic relations with the US government.

Recognition from the US would unlock these economic and business opportunities while providing the United States with preferential access to Somaliland's rare earth minirelearth resources which are important for the AI revolution, US defense sector, and advanced technology.

Additionally, over the past decades, the landlocked Ethiopia with over 120 million population, has been seeking alternative port options, to reduce its heavy reliance on Djibouti Ports. Hence, Berbera has become a crucial trade corridor for one of fastest-growing economies in Africa. The recently established Berbera Economic Zone (BEZ) modelled on the Jebel Ali Freezone in Dubai. BEZ is an integrated maritime, logistics, and industrial hub with attractive tax benefits, and it is a zone where companies can establish light industries and warehouses. U.S. businesses can and should take advantage of the Berbera corridor which reduces reliance on the Chinese-dominated ports in Djibouti.

The cost of energy in Somaliland remains one of the most expensive in the region, though the price per kWh has been on the decline in a number of key cities, including Berbera. Nonetheless, there is a massive opportunity in American investments in the renewable energy sector as Somaliland receives a considerable amount of sunlight throughout the year. As Somaliland goes through the digital transformation, there are a number of internet undersea cable companies, including the Meta-backed 2Africa, which landed their cables in Berbera and provides internet to millions of Ethiopians, and this is yet another nascent sector for investment. Not to forget, the existing opportunities of setting up data centers across Somaliland.

As the economy opens up to the international markets, there is a greater need for international standard financial institutions, including banking services, insurance corporations, and microfinance for small-scale businesses which dominate the informal economy.

Rewarding the Only True Democracy in the Horn

Somaliland has held 7 one-person-one-vote local council, parliamentary, and presidential elections since 2002, all deemed free and peaceful by international observers. There has been peaceful transfer of powers between political parties, and opposition candidates who have won elections, including the current President of Somaliland, Mr. Abdirahman Abdilahi “Irro.” This democratic record is a real asset, and Somaliland stands in sharp contrast to authoritarian-led regimes in many countries across the Horn of Africa.

By refusing to recognize this reality, the international community, and the United States failed Somaliland. This undermines American values and interests in promoting democracy and good governance across Africa, and around the world. Recognition should reward 30 years of hardwork, democracy, and decent governance.

In conclusion, at the moment, the US government does not need to immediately offer a full diplomatic recognition to Somaliland, but should initiate a process in which it deepens ties with Somaliland. This initiative should include establishing an official representation office, promoting travel and investment, increasing development assistance, and expanding security cooperation across all fields. There are other countries which maintain offices in Hargeisa, including the UK, the UAE, Ethiopia, and Denmark.

However, in the immediate future, the goal should be full recognition and the establishment of diplomatic relations. Three decades of self-governance, democratic progress, and pro-Western orientation deserves acknowledgment. American strategic interests in countering the growing Chinese influence in the region, combating the increasing threat of non-state terrorist actors, and promoting democracy should be the basis in establishing relations with Somaliland.

For the first time, the United States has a real opportunity to align its diplomatic recognition with both its values and interests by embracing Somaliland as a legitimate and a trusted partner. Continuing to ignore Somaliland while promoting the fragile state of Somalia serves no country's political and strategic interests- least of all that of the United States.