From ICG, 10 Aug 06: Can the Somali Crisis Be Contained?
...The Islamic Courts’ success, and the rise to prominence of hard-line jihadi Islamists within them, has alarmed neighbours and sent shock waves through the broader international community. Ethiopia, which suffered terrorist attacks by al-Itihaad al-Islaami (AIAI) in the mid-1990s, considers the Courts a direct threat. Kenya is alarmed by links between key figures within the Courts and individuals of concern within its own borders. The U.S. believes jihadi Islamists within the Courts shield al-Qaeda operatives responsible for bombing two of its embassies in 1998. All share determination not to allow Somalia to evolve into an African version of Taliban-ruled Afghanistan. Meanwhile, the Transitional Federal Government is increasingly perceived within Somalia as a faction rather than a national authority and is so wracked by internal dissent and the accelerating defections of cabinet ministers that it threatens to fall apart.

The TFG and Ethiopia paint the Islamic Courts – far too simplistically – as a terrorist umbrella, backed by thousands of foreign jihadi fighters, and Ethiopia has threatened to “crush” them if they move against the TFG. The Courts have responded to Ethiopian deployments in Somalia by calling for a defensive jihad and breaking off peace talks under Arab League auspices. Skirmishes between TFG and Islamic Court forces south of Mogadishu in late July were widely perceived as the first exchanges of a coming conflict. Unless the crisis is contained, it threatens to draw in a widening array of state actors, foreign jihadi Islamists and al-Qaeda. Moreover, Eritrean assistance to the Courts has made Somalia an increasingly likely proxy battlefield between long-feuding Eritrea and Ethiopia...