Research Article

SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023)

Volume: 12 Number: 1 July 30, 2025
Journal of Economics Finance and Accounting Cover
Journal of Economics Finance and Accounting
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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

References

  1. African Development Bank. (2022). African economic outlook 2022: Supporting climate resilience and a just energy transition in Africa. AfDB.
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  3. Ali, S. (2017). Differential effects of internal and external remoteness on trade flows: The case of Pakistan. https://www.semanticscholar.org/paper/Differential-Effects-of-Internal-and-External-on-ofAli/5778e072033da97456e02072fcf646544a0b9062
  4. EAC Secretariat. (2023). East African Community at a glance. EAC Secretariat. https://www.eac.int/
  5. East African Community Secretariat. (2024). EAC annual report 2023/2024. EAC Secretariat.
  6. East African Community. (2023, November 24). Somalia finally joins EAC as the bloc’s 8th Partner State. https://www.eac.int/press-releases/3049-somalia-finally-joins-eac-as-the-bloc-s-8th-partner-state
  7. Hassan, S. M. (2022). Comparison of Somalia and the East African Community in terms of economy and competition. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4259594
  8. International Trade Centre. (2021). ITC calculations based on UN COMTRADE statistics since January 2021. International Trade Centre.

Details

Primary Language

English

Subjects

Finance, Finance and Investment (Other), Business Administration, Business Systems in Context (Other)

Journal Section

Research Article

Authors

Abubakar Hassan Mohamed Goomeey This is me
0009-0005-0591-042X
Somalia

Publication Date

July 30, 2025

Submission Date

November 27, 2024

Acceptance Date

May 9, 2025

Published in Issue

Year 2025 Volume: 12 Number: 1

DOI

https://doi.org/10.17261/Pressacademia.2025.1966

IZ

https://izlik.org/JA56MR44GW

Cite

RIS / Bibtex
APA
Abdullahi, A. K. M., & Goomeey, A. H. M. (2025). SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023). Journal of Economics Finance and Accounting, 12(1), 41-53. https://doi.org/10.17261/Pressacademia.2025.1966
AMA
1.Abdullahi AKM, Goomeey AHM. SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023). JEFA. 2025;12(1):41-53. doi:10.17261/Pressacademia.2025.1966
Chicago
Abdullahi, Abdirahman Kasim Mohamed, and Abubakar Hassan Mohamed Goomeey. 2025. “SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023)”. Journal of Economics Finance and Accounting 12 (1): 41-53. https://doi.org/10.17261/Pressacademia.2025.1966.
EndNote
Abdullahi AKM, Goomeey AHM (July 1, 2025) SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023). Journal of Economics Finance and Accounting 12 1 41–53.
IEEE
[1]A. K. M. Abdullahi and A. H. M. Goomeey, “SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023)”, JEFA, vol. 12, no. 1, pp. 41–53, July 2025, doi: 10.17261/Pressacademia.2025.1966.
ISNAD
Abdullahi, Abdirahman Kasim Mohamed - Goomeey, Abubakar Hassan Mohamed. “SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023)”. Journal of Economics Finance and Accounting 12/1 (July 1, 2025): 41-53. https://doi.org/10.17261/Pressacademia.2025.1966.
JAMA
1.Abdullahi AKM, Goomeey AHM. SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023). JEFA. 2025;12:41–53.
MLA
Abdullahi, Abdirahman Kasim Mohamed, and Abubakar Hassan Mohamed Goomeey. “SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023)”. Journal of Economics Finance and Accounting, vol. 12, no. 1, July 2025, pp. 41-53, doi:10.17261/Pressacademia.2025.1966.
Vancouver
1.Abdirahman Kasim Mohamed Abdullahi, Abubakar Hassan Mohamed Goomeey. SOMALIA’S ECONOMIC INTEGRATION INTO THE EAST AFRICAN COMMUNITY: TRADE DYNAMICS, OPPORTUNITIES AND CHALLENGES (2012–2023). JEFA. 2025 Jul. 1;12(1):41-53. doi:10.17261/Pressacademia.2025.1966

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