[Column] Hassan Egeh: What does it mean for Somalia to join East Africa Communities (EAC)?

Somalia was admitted into the East African Community (EAC) on Friday Novermber24, 2023 as the eighth member of the bloc as it seeks to expand free trade across the region. The EAC, headquartered in the Tanzania town of Arusha where the summit was taking place, was founded in 2000 and works to encourage trade by removing customs duties between member states.

Somalia first expressed interest in joining the EAC in 2012, but was turned down due to its internal troubles with Al-Shabaab and lack of stable legal and political environment at the time. In August 2023, Somalia officials engaged in negotiations with EAC officials, after which a report was drafted and forwarded to the council of ministers for discussions, before it was forwarded to the heads of state summit, held this Friday.

Free movement of people

EAC citizens are exempt from visa requirements and travel freely within the region. Entrepreneurs in Somalia will have greater opportunities for investment, easing some of the social and economic pressures that have come with its isolation. Since the collapse of the Mohamed Siad Barre regime in 1991, cross-border trade with neighboring countries has decreased due to insecurity caused initially by civil war and later by al-Shabaab’s terrorist attacks. The free movement of goods, services, and people will allow Somali entrepreneurs to access a larger market beyond Somalia's borders.

They can establish business connections, partnerships, and market their products or services to a broader customer base in EAC member countries, including Kenya, Tanzania, Uganda, Rwanda, Burundi, and South Sudan. With reduced barriers to trade, Somali entrepreneurs can engage in cross-border trade more easily.

They can import raw materials or goods from EAC countries at lower costs, facilitating production and enhancing competitiveness. Likewise, they can export their products to EAC member countries without facing excessive tariffs or trade restrictions. The free movement of people will enable Somali entrepreneurs to access a larger talent pool and benefit from skills and knowledge transfer.

Custom Union

The Customs Union eliminates or reduces trade barriers, such as tariffs and non-tariff barriers, among EAC member countries. This means that Somali businesses and consumers can trade goods and services more easily within the EAC, leading to increased economic opportunities and access to a wider range of products at potentially lower prices. The Customs Union promotes regional integration and cooperation among EAC member countries. This can create a conducive environment for collaboration, knowledge sharing, and joint initiatives in various sectors. Somali people can benefit from cross-border partnerships, technology transfer, and the exchange of best practices, which can contribute to economic development and human capital enhancement.

Common Market

The Common Market allows for the free movement of people among EAC member countries. Somali citizens can travel, work, and live in other EAC countries more easily, opening up opportunities for employment, education, and entrepreneurship. This facilitates the mobility of skilled labor, knowledge transfer, and cultural exchange, contributing to human capital development. Somali citizens can access a broader job market within the EAC.

They can seek employment opportunities in EAC member countries, including Kenya, Tanzania, Uganda, Rwanda, Burundi, and South Sudan. This can lead to increased employment options, income generation, and improved livelihoods for Somali individuals and families. The Common Market can enhance skills development and capacity building for Somali citizens. Somali individuals can access educational institutions, training programs, and professional development opportunities in other EAC countries.

This is a Win-Win to both EAC Member countries and Somalia

1. Trade and Economic Opportunities: Somalia offers potential trade and economic opportunities for EAC member countries. Somalia has abundant natural resources, including fisheries, livestock, and minerals, which can be traded and invested in by EAC businesses. Somalia's strategic location along the Indian Ocean also provides access to maritime trade routes, which can benefit EAC countries engaged in international trade.

1. Market Expansion: Somalia's population presents a significant consumer market for EAC goods and services. With a population of over 15 million people, Somalia offers a potential customer base for EAC businesses looking to expand their market reach. By establishing trade links and partnerships with Somali businesses, EAC countries can tap into this market and boost their exports.
2. Human Capital and Skills: Somalia is home to a significant pool of skilled professionals, including doctors, engineers, teachers, and entrepreneurs. EAC countries can benefit from the expertise and knowledge of Somali professionals by facilitating the exchange of skills, promoting collaborations, and attracting Somali talent to work in various sectors across the EAC.
3. Human Capital and Skills: Somalia is home to a significant pool of skilled professionals, including doctors, engineers, teachers, and entrepreneurs. EAC countries can benefit from the expertise and knowledge of Somali professionals by facilitating the exchange of skills, promoting collaborations, and attracting Somali talent to work in various sectors across the EAC.
4. Cultural Exchange and Diversity: Somalia's rich cultural heritage and diversity contribute to the overall cultural tapestry of the EAC region. Cultural exchanges and interactions between Somalia and other EAC member countries can promote understanding, tolerance, and appreciation of different cultures, fostering a sense of unity and shared identity within the EAC.

Hassan Mohamed Egeh is Somalian Governance and Regional Integration Expert. He graduated from Pan African University (PAU) under African Union Commission with M.A in Governance and Regional Integration, currently, he works as Research Consultant for Somalia at African Institute for Development Policy (AFIDEP) based in Nairobi, Kenya.

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