Somalia’s integration and new leadership catalyst for EAC strategic trade shift
Recent developments within the East African Community (EAC) include the election of South Sudan President Salva Kiir as the chairman of the EAC and the acceptance of Somalia as part of its regional organisation.
This decision, long-awaited but not without its challenges, brings both opportunities and complexities. Somalia, currently grappling with conflict and threats from the al-Shabab terrorist group, has a primarily nomadic culture, with significant exports centred around livestock and animal skins. While the country is in the process of economic reforms and peace-building initiatives, its stability remains a concern.
Against this backdrop, it’s noteworthy that Somalia now holds a position as a key decision-maker within the EAC, influencing the formulation and implementation of decisions by the East African Legislative Assembly (EALA). The EALA, a crucial organ within the EAC, is dedicated to advancing the integration mission, with the ultimate goal of enhancing the quality of life for the people of East Africa through economic, political, social, and cultural integration.
In line with the Treaty for the Establishment of the East African Community, the EALA creates committees to effectively execute its mandate, functioning as the cornerstone within the EAC. This includes crafting and implementing policies and procedures for each body or pillar, ensuring the overall efficiency and effectiveness of the community’s functions.
The contracting States are mandated to establish an East African Customs Union, representing the inaugural stage of integration, followed by the establishment of a Common Market. This commitment involves a collective agreement among Member States to institute a regime of free trade encompassing goods and services within their borders. Additionally, there is consensus on implementing a common external tariff (CET), ensuring uniform tariff rates for imports from nations outside the EAC zone.
Goods moving freely within the EAC must adhere to the Community’s ‘Rules of Origin’ and certain provisions of the Protocol for the Establishment of the East African Community Customs Union. The objectives of the EAC Customs Union include further liberalizing intra-regional trade, promoting efficiency in production, enhancing investment, and fostering economic development and diversification.
In the realm of decision-making, elected members play a crucial role in the EALA, serving as key policy and decision-makers. These individuals are drawn from each member state. Each member state submits nine elected members, and 8 ex-officio members. According to Article 50 of the East African Community Treaty, members are elected by their respective country’s national legislature. This means Somalia will be represented in the EALA
As the EAC’s Economic Strategic Plan undergoes revamping for the future, this presents an opportune moment for the new members, including Somalia, and the new leadership to showcase their impact on the community. The legislative assembly sessions in February 2024 will serve as a platform to discuss and implement a new strategic plan, particularly focusing on trade policies and procedures among states and foreign trade regions. This shift has the potential to reshape the community’s approach to trade, aligning with the evolving trajectory of the global landscape.