Why Port Corridors Matter for Preserving Coffee Supply Chains

Fighting between Fano forces and government troops continues in Ethiopia's North Shewa Zone, and two trucks carrying Ethiopian weapons were seized in central Somalia, raising diplomatic tensions. The events could void Ethiopia's agreement with Somaliland over Berbera port use, while the Djibouti route faces Red Sea disruption, putting coffee exports under serious logistical strain.

Ethiopia is a major coffee production by country in Africa, and the export trade is the backbone of its economy. Clashes in Darra district have killed at least three civilians and displaced many families, and unrest also affects West Oromia and Galmudug in Somalia. Conflict damages infrastructure, capacity and supply chains, so preserving coffee supply chains now depends on keeping port corridors open.

The ongoing armed conflict in Ethiopia continues to spread. Clashes recently broke out in the Darra district of the North Shewa Zone, causing civilian casualties and large-scale displacement. Meanwhile, two trucks carrying Ethiopian weapons were intercepted and seized in central Somalia, triggering diplomatic tensions. This series of events could render Ethiopia's previously signed agreement with Somaliland on the use of the Berbera port null and void, while the Djibouti port faces suspension due to the Red Sea crisis. Coffee exports, the backbone of the country's economy, are now facing unprecedented logistical difficulties.

According to a report by local Ethiopian media on July 20, armed clashes between Fano forces and government troops continue in the Darra district of the North Shewa Zone, not far from the Ethiopian capital.

According to reports, three civilians have been killed and many others injured so far. Residents say the area has long been a battlefield between Fano forces and the Oromo Liberation Army, as well as between various armed groups and government troops. For safety reasons, residents are evacuating en masse, and many families have been displaced.

In fact, over the past year, the Ethiopian government has repeatedly mobilized and deployed troops on a large scale to the Amhara region of Ethiopia, intending to suppress the Fano forces there, but has consistently failed. The fighting has also spread to the Oromia region, where the capital is located. Meanwhile, clashes between various armed groups and government troops in West Oromia continue to cause casualties, leading to increasingly severe massacres and kidnappings there.

At present, conflicts continue in many parts of Ethiopia, which will seriously affect the country's economy, causing losses to its infrastructure, production capacity, and supply chains, restricting production and business activities, and damaging multiple industries including coffee and tourism.

In addition, Ethiopia's export problems are severe. Because neighboring Somalia is also unstable, reports say clashes occurred in the Galmudug State of the Federal Republic of Somalia. It is alleged that two trucks carrying Ethiopian firearms and weapons were suspected of being illegally smuggled into the central region of the Federal Republic of Somalia, so the Somali government dispatched National Intelligence and Security Agency (NISA) forces to investigate and seized the batch of weapons.

When NISA forces were transporting the firearms to the capital Mogadishu, they were intercepted and robbed by militia forces in Galmudug State, and armed clashes broke out. According to reports, 10 NISA members, including a senior officer, were killed, and the militia successfully seized two trucks loaded with Ethiopian firearms.

According to the Somali government, these firearms were illegally smuggled from Ethiopia, and the batch contained a cumulative total of about 4,000 machine guns, rifles, and other weapons, as well as large quantities of ammunition. However, the Ethiopian government has so far issued no comment.

Recently, due to ongoing local armed conflicts in Ethiopia and the Red Sea crisis, the country's coffee exports have been affected. The Djibouti port has long been the only port for all of Ethiopia's cargo exports, but this port has been affected by the Red Sea crisis.

In March of this year, MSC shipping company, which accounts for 80% of the Djibouti port's business, suspended shipping services at the port. Although services were later resumed, the number of voyages decreased. But by early July, MSC said it would completely suspend operations at the Djibouti port.

This will have a huge impact on Ethiopia's coffee exports, so the country began looking for other ports for exports earlier. In February, the Ethiopian Prime Minister signed a memorandum of understanding with the leader of the local government of Somaliland in northern Somalia. Ethiopia would gain the right to use the Berbera port in Somaliland, but in return would recognize Somaliland's independence as a state in the future.

However, this move dissatisfied the Somali state, as the Somali government believed the agreement violated its sovereignty, leading to an escalation of tensions between the two sides, and Ethiopia still cannot use the Berbera port stipulated in the agreement. Later, however, Turkey intervened to mediate, hosting diplomats from Ethiopia and Somalia. After candid, friendly, and forward-looking talks on their differences, the three parties signed a joint statement. Another round of talks was held in Ankara on September 2.

But recently, reports indicate that the conflicts breaking out in Somalia are all related to Ethiopia, which may worsen the eased relations between Ethiopia and Somalia again, preventing Ethiopia from using Somali ports.

At the same time, this incident also reflects that Somalia itself is plagued by continuous conflicts and has a low level of security. When export goods are transported to the port, they may be intercepted and robbed along the way, resulting in the loss of goods. Therefore, both the export volume and logistics costs of Ethiopian coffee will be affected.

The above content is compiled by CoffeeHunters, a coffee news website.