Mogadishu (HOL) — Somalia inaugurated a new container terminal at Mogadishu port this week, nearly doubling the country’s cargo-handling capacity in a move officials say will spur economic growth and strengthen regional trade links.

The terminal increases throughput from 150,000 to 250,000 twenty-foot equivalent units, positioning Mogadishu to compete with established regional hubs such as Mombasa and Dar es Salaam. Minister of Ports and Marine Transport Abdul Kadir Muhammad Nur and newly-appointed port director Mohamed Ali Nur ‘Americo’ presided over the ceremony.

James Shikwati, founder and director of the Inter Region Economic Network, said the expansion reflects Somalia’s growing role in Africa’s trade ambitions.

“We have to congratulate Somalia for upgrading its port capacity by nearly 100,000 units,” he said. “This aligns with the African Continental Free Trade Area vision, which requires modern ports across the continent’s coastline. From a regional perspective, this is a very welcome announcement.”

The upgrade is expected to create jobs for Somali youth and expand port-related industries, while also offering a competitive alternative for neighboring states. Ethiopia, with more than 100 million people, currently relies on Djibouti for most of its imports and exports. Analysts say Mogadishu’s expanded terminal could provide a shorter and cheaper option, with additional benefits for South Sudan, Uganda, Rwanda, Burundi, and the Democratic Republic of Congo.

Beyond economics, the project signals investor confidence in Somalia despite ongoing security challenges. Shikwati noted that foreign involvement — particularly from Middle Eastern states — also underscores a shifting geopolitical competition along the Indian Ocean trade corridor.

“By attracting partners willing to build in Somalia, the government is sending a message that the region has stability and potential,” he said. “It also shows that emerging economies want a stronger voice in global trade.”