Somalia set to join EAC regional bloc

Somalia is on the brink of becoming the newest member of the East African Community (EAC) regional trade bloc, a move that is expected to have far-reaching implications for regional economies and trade dynamics. In an exclusive interview with CNBC Africa, Mahat Mohamed Ahmed shed light on what this development means for Somalia and the broader region. The journey towards Somalia's inclusion in the EAC dates back to 2012 when the initial application was declined due to security concerns and the country's perceived lack of readiness. However, with the recent visit of a verification team led by Dr. Pita Matuka, Secretary General of the EAC, there is a strong indication that Somalia is now deemed fit to join the bloc. Ahmed expressed excitement about the prospect of Somalia joining the EAC, highlighting the significant progress made by the country in terms of institution-building and constitutional reforms over the past decade. He expressed confidence that the verification team's report will be positive, paving the way for Somalia's membership in the EAC. One of the key themes discussed during the interview was the potential impact of Somalia's entry into the EAC on trade and investment. Ahmed emphasized the untapped opportunities in sectors such as banking and the blue economy, given Somalia's extensive coastline. He underscored the existing business ties between Somalia and EAC member states, noting the significant presence of Somali entrepreneurs across the region. Ahmed highlighted the potential benefits of formalizing trade relations within the EAC framework, particularly in terms of facilitating movement of goods and people. The interview also delved into the implications for the financial sector and transportation industry in Somalia once it joins the EAC. Ahmed pointed out the rapid growth of Somalia's banking sector and the potential for increased investment and business opportunities in the country. He emphasized the importance of aligning Somalia's standards and protocols with those of the EAC to ensure seamless integration into the regional economy. The interview further touched upon the security challenges facing Somalia and the government's commitment to addressing them, which is crucial for fostering a conducive business environment and attracting investors. The potential accession of Somalia to the EAC is not only expected to expand market size and boost intra-regional trade but also open up new avenues for collaboration within the African continent. With intra-Africa trade currently standing at around 15%, the addition of Somalia to the EAC could contribute to enhancing regional trade dynamics. Ahmed highlighted the significance of Somalia's potential membership in the EAC and other regional bodies, emphasizing the government's efforts to enhance the country's image and strengthen its engagement with the international community. Despite the remaining challenges, notably security concerns, Ahmed expressed optimism about Somalia's imminent entry into the EAC and the positive impact it is poised to have on the regional economy. In conclusion, Ahmed reiterated the commitment of the EAC council to expedite the process once the verification team concludes its assessment, signaling a potential fast-track to Somalia's integration into the regional bloc. Overall, Somalia's impending entry into the EAC represents a significant milestone that could reshape trade dynamics and bolster economic cooperation within the East African region.