What Happened: The London Court of International Arbitration has ordered Djibouti to pay roughly $385 million in compensation to Dubai-based DP World following a breach of contract in which the East African country suddenly ended a concession to the company, France 24 reported April 4.
Why It Matters: By itself, the ruling is unlikely to alter the situation on the ground as the United Arab Emirates has already been shifting its efforts in the region by building a new container terminal in Berbera, Somaliland, to gain access to Ethiopia's emerging market.
Background: The decision comes after Djibouti unilaterally scrapped the Emirati company's 50-year concession to the country's Doraleh container terminal in February 2018.
- France: Macron Looks to Drum Up Business in the Horn of Africa (March 11, 2019)
- Washington Wakes Up to East Africa's Importance (Nov. 29, 2018)
- Chinese Naval Base in Djibouti (July 27, 2017)