The President of South West State, Abdiasis Lafta-Gareen, has recently handed over the management of Barawe port to a Kuwaiti company called Arab Digital Holding. The project is to last for a 25-year period, valuing $500 million, to develop the port and utilize the natural resources of the area, including oil.
Modern facilities will include hotels, free trade zones, and factories aimed at improving maritime production and job generation. Arab Digital will implement this plan together with another Egyptian partner, MYD, which that is responsible for the construction and modernization of Barawe port. The focus of the project will be to improve the harbor facilities and the areas capable of attracting people and businesses.
The agreement is also expected to benefit several countries in the region, including Ethiopia, South Sudan, Kenya, and other East African states. Barawe port is deemed as being one of the main canals of trade for these nations, and these will, thus, be able to benefit from it. The project plans to include a total expansion for development of 200 kilometers.
The exploratory work on the project is expected to start in the coming months, as economic returns on the project are being expected soon. However, neither the South West government nor the Somali federal government has made an official comment on the agreement, and their response is yet to be awaited to affirm the holding of this vital project.