Volume-XI, Issue-III, May 2025 |
Somalia’s Economic Integration into the East African Community: Trade Dynamics, Opportunities and Challenges (2012–2023) Abdirahman Kasim Mohamed Abdullahi, Makerere University, Kampala, Uganda. Abubakar Hassan Mohamed Goomeey, The Somali National University, Mogadishu, Somalia |
Received: 30.04.2025 | Accepted: 18.05.2025 | Published Online: 31.05.2025 | Page No: 513-530 | ||||
DOI: 10.29032/ijhsss.vol.11.issue.03W.048 | |||||||
ABSTRACT | ||
The study uses secondary data obtained
from sources like the World Bank and UN COMTRADE statistics to examine the trade flows and economic
performance of Somalia from 2012 to 2023. To assess the economic integration of
Somalia within the EAC, identify the most prevalent trade patterns,
opportunities, and challenges encountered in successful regional integration.
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.
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:
Economic Integration, Trade Dynamics,
Trade Opportunities & Challenges, Somalia and East African Community (EAC). |