SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023)
Abstract
Purpose- This study examines Somalia’s economic integration into the East African Community (EAC) from 2012 to 2023, focusing on trade dynamics, regional opportunities, and challenges. The objective is to assess Somalia's trade performance within the EAC, identify barriers to integration, and provide insights on how Somalia can enhance its regional trade relations and overall economic participation.
Methodology- The study uses secondary data obtained from sources such as the World Bank and UN COMTRADE statistics, to examine the trade flows and economic performance of Somalia from 2012 to 2023. It further assesses the economic integration to the East African Community (EAC) by identifying prevalent trade patterns, key opportunities, and challenges associated with successful regional integration.
Findings- The total trade value of Somalia between 2012 and 2023 increased steadily from $3.8 billion to $10.17 billion. Despite this growth, the country still has a huge trade deficit with exports valued at $2.16 billion and imports valued at $8 billion in 2023. Somali business exports are strongly biased towards Kenya, which implies minimal diversification and minimal engagement with other EAC member states. Besides, the GDP per capita of the country has remained quite stable at around $350.26 during the time under review, signifying continued economic woes. Current political instability, lack of good infrastructure, and inadequate institutional settings are the major impediments to regional integration by Somalia.
Conclusion- Somalia's accession to the East African Community (EAC) is a significant step towards regional integration but challenges such as a large trade deficit, low export diversification, political instability, and poor infrastructure hinder full economic participation.
Keywords
Somalia economic integration trade dynamics trade opportunities & challenges Somalia and East African Community (EAC).
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Details
| Primary Language | English |
|---|---|
| Subjects | Finance, Finance and Investment (Other), Business Administration, Business Systems in Context (Other) |
| Journal Section | Articles |
| Authors | |
| Publication Date | July 30, 2025 |
| Submission Date | November 27, 2024 |
| Acceptance Date | May 9, 2025 |
| Published in Issue | Year 2025 Volume: 12 Issue: 1 |
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