DAR ES SALAAM, March 6 (NNN-DAILYNEWS) — A CROSS-SECTION of analysts have highlighted the significant economic implications of Somalia’s accession to full membership in the East Africa Community (EAC).
The move, they say, is poised to unleash a wave of trading opportunities, particularly in sectors such as financial services, logistics and various service industries.
President of the Tanzania Association of Accountants (TAA), Godvictor Lyimo, highlighted the broadened market potential for EAC members following Somalia’s inclusion.
“Somalia inclusion makes it the more the merrier in terms of market opportunity for the manufacturing, agriculture and even service industry,” he remarked.
He emphasised that with strategic positioning, the expanded market frontier could catalyse economic growth and bolster production across all sectors.
EAC Summit of Heads of State admitted Somalia into the Community on Nov 24, 2023.
Subsequently, Somalia signed the Treaty of Accession to the EAC Treaty on Dec 15, 2023 and became a full member upon depositing her instrument of ratification of the EAC Treaty with the EAC Secretary-General on March 4, 2024 .
Monitoring and Evaluation specialist, Lilian Shirima, pointed out the trade agreements and market potential as major opportunities stemming from Somalia’s inclusion.
However, she also cautioned against insecurity, saying that Somalia’s internal conflicts might pose a risk to the region.
A Lecturer in the Department of Economics at Saint Augustine University of Tanzania (SAUT), Dr Fransis Nyoni underscored both the advantages and disadvantages of Somalia’s accession.
Dr Nyoni emphasised that joining the EAC would expand markets under a common market with shared tariffs.
Furthermore, he highlighted the potential for Somalia’s membership to contribute to regional peace, as historically volatile nations like the Democratic Republic of Congo (DRC) have seen stability following EAC inclusion.
However, Dr Nyoni acknowledged the challenge that Somalia’s internal conflicts pose to the region’s peace rankings.
He cautioned that continued conflict in Somalia could further diminish the EAC’s standing in global peace indices.
A Public Relations Manager and lecturer at the Centre for Foreign Relations (CFR), Innocent Shoo hailed Somalia’s entrepreneurial spirit and extensive coastline as assets for the EAC.
He emphasised Somalia’s potential to drive economic growth within the region through increased Foreign Direct Investment (FDI) and expanded market access.
Shoo highlighted the population influx Somalia brings to the EAC, boosting the regional market to over 300 million people, anticipating increased investment opportunities in various sectors, including services, human skills development and technical industries.
The analysts agree that Somalia’s full membership in the EAC will bolster intraregional trade, enhance economic stability and contribute to regional security.
However, challenges remain, particularly regarding Somalia’s internal conflicts and their potential impact on the overall peace and stability of the region.
EAC is a regional intergovernmental organisation of eight partner states: Tanzania, Democratic Republic of Congo, Kenya, Rwanda, Somalia, South Sudan, Uganda and Burundi, with its headquarters in Arusha, Tanzania.
EAC is home to an estimated 302.2 million citizens, of which over 30 per cent is urban population, with a land area of 5.4 million square kilometres and a combined Gross Domestic Product of 312.9 billion US dollars. — NNN-DAILYNEWS
