Somaliland and Ethiopia have signed a memorandum of understanding (MOU) on cross-border insurance.
With this MOU in place, people operating commercial vehicles would be denied entry into either Somaliland or Ethiopia if they lack insurance.
These reports emerged on Friday, August 27 during bilateral discussions between delegations from Somaliland National Insurance Agency and Ethiopia Insurance Corporation.
Trucks and tourist buses that operate across the border must now have valid insurance in both Somaliland and Ethiopia.
Somaliland has been contemplating such an MOU for a long time.
Its National Insurance Agency has taken a leading role the formulation of the MOU.