This follows the signing of a deal between Hobyo Investment Company and Turkish conglomerate Metag Holding to develop the Hobyo Port in Mogadishu.
Galmudug State president Ahmed Abdi Kariye was among leaders who attended the official signing of the 80-years long agreement.
Kariye highlighted the potential of the port to transform Somalia's central coastline into a major trade hub.
He emphasized the strategic importance of Hobyo Port, especially for Ethiopia, which lacks a direct seaport and relies heavily on Djibouti for 90 per cent of its imports and exports.
“Ethiopia does not have a port, and Hobyo presents an exceptional business opportunity. We will soon overcome the challenges we face, and Hobyo will emerge as one of the largest ports in Somalia, serving multiple cities across the nation,” he stated.
The development of Hobyo Port is expected to alleviate congestion at Mogadishu's overburdened port, redistributing trade and enhancing efficiency within Somalia's maritime trade network.
It is projected to bring significant economic benefits to Galmudug including, creating jobs, improving infrastructure, and supporting local businesses.
Once complete, Hobyo is poised to become a vital export point for Somalia's livestock and agricultural products, benefiting farmers and traders in the region.
Hobyo's strategic position along key maritime routes linking the Middle East, Asia, and East Africa places it at the centre of a burgeoning trade network.
Somalia boasts of one of the biggest coastlines in Africa but internal strife and terror threats have shielded the country from tapping into the maritime business potential.
Former National Intelligence Service Director (NISA) Director Mahad Salad commended the Committee dedicated to the port's construction for reaching this critical initial phase, paving the way for the official start of the Port's development.
Other leaders present during the signing ceremony were prominent businessman Liban Ahmed Hassan who is eyeing the Galmudug presidency, federal ministers, lawmakers, and other business leaders.
Liban is among leaders who played a crucial role in providing the initial funding as well as raising funds to a tune of $29 million for construction of the port.