The Horn of Africa States (HAS), comprising Djibouti, Eritrea, Ethiopia, and Somalia, occupies a geostrategically significant location at the intersection of the Red Sea and the Indian Ocean. This region holds immense economic potential due to its proximity to critical maritime trade routes, youthful population, and untapped natural resources. However, its development trajectory has long been hindered by political instability, conflict, fragile institutions, and environmental vulnerabilities. 

As the global economic order evolves and regional dynamics shift, the Horn of Africa is at a crossroads, either to unlock its potential through integration and reform or continue to lag under the weight of its historical and structural challenges.

Economically, the region is marked by diversity and disparity. Ethiopia, the largest country in the bloc by both population and economy, has demonstrated periods of impressive economic growth over the past two decades. Fueled by state-led infrastructure development and an ambition to industrialize, Ethiopia became one of Africa’s fastest-growing economies before recent internal conflicts derailed progress. The Grand Ethiopian Renaissance Dam (GERD), for instance, is a symbol of both the country’s developmental ambitions and the geopolitical tensions it stirs. 

Djibouti, though small in territory and population, holds disproportionate economic and strategic importance. Its location near the Bab El-Mandeb Strait, a chokepoint........

© Eurasia Review