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Somiland’s offer of a military base to the US risks stirring instability
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As Donald Trump upends the global-trade playbook, a restive corner of Africa is stirring amid efforts to impress the US president.

The semi-autonomous region of Somaliland is courting Washington to recognize its claim for independence from Somalia — a goal that’s bound to shake up the Horn of Africa, where conflict is perennial.

Abdirahman Mohamed Abdullahi, who leads the breakaway territory, has offered the US a military base at the entrance to the Red Sea and deals for sought-after minerals.

A political rally in Hargeisa, Somaliland, on Nov. 9. Photographer: Luis Tato/Getty Images

Its leaders have met Somalia’s US ambassador Richard Riley and defense department officials at least five times since Abdullahi came to power in late 2024.

The stage is now delicately set for a meeting between the Somaliland president and Trump in the not-too-distant future, a tête-à-tête that Abdullahi said would be used to hash out an accord.

While the US currently acknowledges Somalia’s claim to the territory, any kind of deal could once again send shockwaves through the region. That could add to instability — American troops have been helping Mogadishu battle an Islamist insurgency for decades, while neighbor Ethiopia has long coveted access to the ocean. 

Just this week, Somalia formed a new state by annexing territory from Somaliland.  

“We are a peace-loving nation, but Somaliland is capable of defending its territory and its people,” Abdullahi said in an interview.

For the US, a military base in Somaliland would make sense.

The United Arab Emirates already controls a port in the coastal town of Berbera and flies military planes in and out of its airport. US defense officials have scouted Somaliland as they look for new locations to establish a presence outside of nearby Djibouti, where it currently runs a base alongside nations such as China.

WATCH: Simon Marks reports on the lobbying effort on Bloomberg TV

A new site would boost Washington’s ability to tackle Iran-backed Houthis as they continue attacks on ships. 

It’s unclear how much bargaining power Somaliland has, though. Its mining sector is still developing, facing challenges such as a lack of infrastructure and limited institutional capacity. 

And while companies have confirmed the presence of minerals including lithium, they don’t know if there’s the commercial value Trump would expect. — Simon Marks

Key stories and opinion:
Breakaway Africa Region Seeks US Recognition With Base, Minerals 
Somalia Carves Out New State From Territories Seeking Autonomy 
Somalia State Probing Turkey-Linked Cargo Seized Off Its Coast 
Why Ethiopia’s Red Sea Access Bid Angers Somalia: QuickTake 
Light of Democracy Is Dimming Across East Africa: Justice Malala

On this week’s Next Africa podcast, Simon Marks joins Jennifer Zabasajja to explain the history behind Somaliland and its independence claim, and whether this new plan to try and get US recognition will succeed.

News Roundup 

South Africa’s government is preparing a package to support companies vulnerable to US tariffs as it continues talks with Washington on a trade deal. Trump imposed a 30% levy on imports from South Africa — the highest in sub-Saharan Africa — as part of his revised global plan. Pretoria notes the duties “with concern,” President Cyril Ramaphosa said. Lesotho was spared the 50% it orginally faced, a lifeline for the tiny mountainous nation’s textile industry. Citigroup sees African nations trading more with China and Europe. Here’s a list of all the US reciprocal tariffs.

Grapefruit ready for export at the Blydevallei Boerdery citrus farm, in northeastern South Africa. The country is the world’s second-largest citrus exporter and the US is a major market. Photographer: Waldo Swiegers/Bloomberg

Trump said he may skip the G-20 summit in Johannesburg, saying he may send someone else to the gathering of the leaders of the world’s biggest economies. “I’ve had a lot of problems with South Africa,” the US president told reporters aboard Air Force One. G-20 leaders’ summits bring together the heads of member countries as well as those from nations invited the host. This is the first year that it’s being held in Africa.

Ivory Coast’s president, Alassane Ouattara, announced this week he will seek a fourth term as leader of the biggest cocoa-growing nation in elections set for Oct. 25. The 83-year-old has been in power since 2011 and was endorsed by the ruling Rally of Houphouëtists for Democracy and Peace as its candidate at a congress last month. Former Credit Suisse CEO Tidjane Thiam’s options to run for president appear to have been exhausted, after a UN agency declined to push for his banning to be reversed.

Alassane Ouattara.  Photographer: Denis Balibouse/AFP/Getty Images

The military-led governments of Mali, Niger and Burkina Faso plan to channel part of their revenues into a new investment bank to reduce reliance on foreign donors. Each will contribute about 5% of tax income, Serge Balima, an adviser to Burkina Faso’s ruler Ibrahim Traoré, said in an interview. The countries, which broke away from regional bloc Ecowas, have also adopted new natural-resource codes to increase their stakes in mining operations.

The US called off a meeting of foreign ministers to discuss the war in Sudan because of a dispute over the wording of a proposed joint statement, sources say. Secretary of State Marco Rubio was due to host the foreign ministers of Saudi Arabia, UAE and Egypt in Washington. Egypt disagreed with the wording of a planned communique that stated neither the Sudanese Armed Forces nor the rival Rapid Support Forces paramilitary group should have a leading role in a post-war transitional government.

Members of the Rapid Support Forces in Sudan’s capital, Khartoum, in 2019. Photographer: Yasuyoshi Chiba/AFP/Getty Images

More than 20 people died during protests against rising fuel prices in Angola and over 1,000 were arrested, Interior Minister Manuel Homem said. Violence erupted in the capital, Luanda, on Monday after minibus taxi drivers began what was scheduled to be a three-day shutdown. While the situation in the city stabilized Tuesday, protests spread to the central town of Huambo. Two weeks ago, hundreds of students took to the streets of Luanda to protest against higher tuition fees and living costs in one of Africa’s biggest oil producers.

Next Africa Quiz — Who is Africa’s richest person? He resigned last week as chairman of his cement company. Send your answers to gbell16@bloomberg.net.

Past & Prologue

Data Watch

  • Kenya’s annual inflation rate climbed to a three-month high in July on tight supplies of vegetables and corn, the nation’s staple.
  • Ivory Coast plans to raise €800 million in syndicated loans arranged by Standard Chartered and Société Générale to help fund its budget, sources say. 
  • Zambia’s real interest rate is the highest in six years after inflation slowed, providing room for the central bank to cut borrowing costs for the first time since 2020.
  • South Africa’s central bank cut interest rates to the lowest since November 2022, and announced plans to target a reduced inflation goal of 3% going forward — a decision Finance Minister Enoch Godongwana criticized as “unilateral.”

Coming Up

  • Aug. 5 July PMI reports for South Africa, Egypt, Mozambique, Uganda, Kenya and Ghana, Morocco unemployment, Tunisia inflation for July, Lesotho and Madagascar interest-rate decisions
  • Aug. 6 Ghana inflation data for July, Zambia PMI
  • Aug. 7 South Africa July reserves & central bank government-bond holdings, Mauritius inflation & reserves for July
  • Aug. 8 Inflation data for Tanzania and Mozambique, Ghana celebrates the 60th anniversary of the cedi 

Quote of the Week

“You just have to accept that it is what it is.”
Lesetja Kganyago
South African central bank governor
Kganyago was responding to a question about the global uncertainty around US trade policies, after announcing a cut in interest rates.

Last Word

Bain is closing its consultancy business in Johannesburg, likely bringing to an end a yearslong battle to try and restore its reputation in Africa’s biggest economy following a 2022 ban. South Africa’s Treasury accused the Boston-based firm of engaging in “corrupt and fraudulent practices” related to a contract with the tax agency and stopped it from doing business with government agencies. Bain is one of several international companies — including McKinsey, SAP and ABB — whose reputations were tarnished because of links to state-graft scandals during former President Jacob Zuma’s tenure. All have paid back fees or accepted fines. 

Zuma, as leader of the opposition uMkhonto weSizwe Party, at an election rally outside his homestead in Nkandla, in April 2024.  Photographer: Leon Sadiki/Bloomberg

We’ll be back in your inbox with the next edition on Tuesday. Send any feedback to gbell16@bloomberg.net.

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