Kenya and Uganda to mediate Ethiopia-Somalia dispute

Landlocked Ethiopia, which has thousands of troops in Somalia to fight al Qaeda-linked insurgents, has fallen out with the Mogadishu government over its plans to build a port in the breakaway region of Somaliland, in exchange for possible recognition of its sovereignty.

Somaliland has struggled to gain international recognition despite governing itself and enjoying comparative peace and stability since declaring independence in 1991.

The spat has drawn Somalia closer to Egypt, which has quarrelled with Ethiopia for years over Addis Ababa's construction of a vast hydro dam on the Nile River, and Eritrea, another of Ethiopia's foes.

Somaliland has struggled to gain international recognition despite governing itself and enjoying comparative peace and stability since declaring independence in 1991.

"Because the security of Somalia... contributes significantly to the stability of our region, and the environment for investors and business people and entrepreneurs to thrive," he told a news conference.

Several attempts to resolve the feud in Ankara, Turkey, failed to make a breakthrough.

Ethiopia's government and foreign affairs spokespeople did not immediately respond to requests for comment. Somalia's foreign minister could not immediately be reached by Reuters.