Somalia joins East Africa trade bloc

Somalia formally became the eighth member of the East African Community trade bloc during a signing ceremony held at the presidential residence in Kampala, Uganda.

President Hassan Sheikh Mohamud inked the treaty, solidifying Somalia’s place within the regional economic alliance, with dignitaries from across East Africa in attendance.

The signing ceremony, presided over by the current EAC chairman, South Sudan President Salva Kirr, was a brief yet significant event. Ugandan President Yoweri Museveni witnessed the momentous occasion on behalf of fellow EAC heads of state, symbolizing Somalia’s integration into the trade bloc.

This development comes just two days after the International Monetary Fund and the World Bank granted $4.5 billion in debt forgiveness to Somalia under the Heavily Indebted Poor Countries Initiative (HIPC). The debt relief follows years of rigorous financial reforms by Somalia, positioning the nation for economic revitalization.

Somalia’s entry into the East African Community aligns with its strategic goals to bolster the war-torn economy by fostering increased free trade across the region. This monumental step follows a series of positive developments, including the United Nations Security Council’s unanimous decision on December 1 to lift the final restrictions on weapons deliveries to Somalia’s government and security forces, marking the end of a more than 30-year arms embargo.

Furthermore, on the same day as the accession, the Somalia Government Aid Agency and Germany’s KfW Development Bank announced a collaborative project worth nearly $20 million. The initiative aims to enhance the capacity of Somali banks and contribute to the development of key sectors such as agriculture, livestock, fishing, education, health, and tourism.

The East African Community, established in 2010, now comprises Burundi, Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania, Uganda, and the newest member, Somalia. This expansion not only broadens the EAC common market but also adds over 3,000 kilometers (1,864 miles) of coastline to the bloc, holding promising potential for offshore resources like oil and gas. Somalia’s accession marks a pivotal moment, ushering in new economic opportunities and regional collaboration.