The East African reports that Somalia is being considered for admission into the East African Community (EAC), its regional bloc. Recently, in a press briefing in Arusha, Tanzania, Peter Mathuki, EAC Secretary General stated that Somalia had made a critical step towards becoming the eighth member of the bloc. “The EAC conducted a verification mission to assess the readiness of Somalia to join the bloc, and the report was deliberated on and shared with all partner states. Negotiations for admitting it will begin on the 22nd of this month to the 5th of September,” he said.
Somalia sought membership in the EAC back in 2012. However, the regional bloc dismissed its application due to internal conflicts caused by Al-Shabaab, a militia group based in the country, and a lack of political stability during that period.
Securing membership in the EAC holds immense significance for Somalia as it would open doors to a vast East African market. With a combined population of over 160 million people and a GDP of approximately $170 billion. This integration could stimulate economic growth and trade opportunities, fostering development in various sectors. Additionally, access to such a substantial market could enhance Somalia’s potential for investments, partnerships, and regional collaboration, consequently promoting stability and prosperity in the region.
More so, joining the EAC would bring considerable advantages to Somalia. One of these is the typical market benefits. That is, freely moving goods, services, money, and workers across member states. This means Somalia can trade and do business more easily within the East African region. Another perk is protection from sudden global economic problems. It’s like having a safety net. Being part of the bloc also means having a standard rule for taxes on goods from outside the group. This rule safeguards local industries. Somalia would not have to face tough times alone. It could rely on its EAC partners for support. All these benefits can boost its economy, create jobs, and improve living standards.
Likewise, EAC members stand to gain significantly from their partnership with Somalia. With a coastline spanning more than 3,330 km along the Gulf of Aden, north, and the Indian Ocean, east and south, Somalia boasts the longest coastline in Africa. This location is strategically significant as it serves as a crucial trade route not only for East Africa but also for export markets in Asia and Australia.
The country’s extensive coastline offers various economic advantages for the East African region. It presents a promising potential for the development of fisheries, as Somalia possesses one of Africa’s largest marine Exclusive Economic Zones, teeming with abundant fish stocks and a rich variety of marine species. Becoming an EAC member would not only foster regional integration and cooperation but also advance trade, infrastructure, security, and overall development among all member nations.
A heavily indebted country
Somalia is a small country. It has a population of 18.2 million people and is also heavily indebted. The country faces one of the world’s most acute humanitarian crises primarily caused by an ongoing armed conflict as well as climate changes and drought. But after enduring years of civil conflict, Somalia is actively pursuing substantial relief from its external debt through participation in the Heavily Indebted Poor Countries (HIPC) Initiative, a collaborative effort involving the International Monetary Fund (IMF) and the World Bank.
As of October 2022, the International Monetary Fund (IMF) pegged its debt to $5.2 billion. Should Somalia maintain its consistent advancement in implementing reforms, it has the potential to attain the HIPC completion milestone by the conclusion of 2023. This achievement would enable the country to substantially reduce its debt from $5.2 billion to approximately $550 million.
