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In a swift response, Somalia's government termed Israel's move as an unlawful step, claiming that Somaliland is an inseparable part of Somalia.
Somaliland declared independence from Somalia in 1991, but until now, it had not been officially recognized as an independent state by any country.
In a statement, Israeli Prime Minister Benjamin Netanyahu said that Israel recognizes Somaliland as a sovereign state and plans to immediately expand its relations with Somaliland through extensive cooperation in various sectors.
Meanwhile, the chairperson of the African Union Commission, Mahmoud Youssef, said he rejects any recognition of Somaliland, adding that the African Union had an unwavering commitment to the unity of Somalia.
For NPR News, I'm Michael Kaloki in Nairobi.