By Hassan Ali
Saturday January 6, 2024
Somalia’s recent admission into the East African Community (EAC) marks a transformative step for its journey towards political stability and economic development indicating a promising era of increased opportunity and regional integration. According to recent reports from the IMF and World Bank, Somalia has made significant progress in economic reform and governance. This resulted in significant debt relief, decreasing its burden from $5.2 billion to a more manageable amount ($0.6 billion) under the Heavily Indebted Poor Countries (HIPC) initiative. This development not only represents a reduction in economic burden but also a strong commitment to systematic structural changes and responsible governance.
Economic Opportunities:
Becoming part of the EAC offers Somalia an opportunity as it gains access to a market with a GDP exceeding $305 billion. The EAC region witnessed trade worth $78.75 billion in 2022 showcasing potential for trade and investment. To fully capitalize on this potential Somalia can learn lessons from countries like Rwanda, an EAC member that experienced economic growth with a real GDP increase of approximately 10.09% in 2021, focusing heavily on technology and services sectors. Somalia can extract pages from Rwanda's playbook for its own economic story. Furthermore, the African Development Bank highlights that Somalia's GDP relies heavily, on agriculture, livestock and fisheries. As a result, prioritizing the growth and development of these sectors could prove to be a path towards achieving agility and fostering overall growth.
Strengthening Peace and Security; Adopting a Unified Approach to Defense and Regional Stability:
The recent inclusion of Somalia in the East African Community (EAC) and the subsequent removal of the UN arms embargo as stated in Security Council Resolution 2714 (2023) represents a significant phase for security and stability in the region. This resolution allows Somalia to responsibly enhance its defense capabilities, indicating a step towards managing arms and addressing the causes of conflicts. The unanimous global support for this decision reflects the international community's confidence in Somalia’s progress towards stability and its vital role in promoting a safer East African region.
At the same time, lifting the arms embargo greatly strengthens Somalia’s independence in defense matters. It enables Somalia to strengthen its military, which is crucial for safeguarding its sovereignty and borders amidst growing regional tensions. Recent developments, such as Ethiopia’s Abi Ahmed expressing interest in accessing sea ports and the contentious memorandum of understanding with Somaliland’s Muse Bihi, highlight threats to Somalia's territorial integrity. These events underscore the need for a robust military defense to deter threats and safeguard Somalia's rights as an independent nation. Developing a force in Somalia is not solely about defense; it is also a strategic measure aimed at preserving national sovereignty and territorial integrity against any form of aggression.
Building Strong Institutions and Promoting Inclusive Governance:
Somalia is now reviewing its constitution, a transformational period aiming to define clearer federal and regional powers. The primary focus lies on fostering governance implementing accountability mechanisms and encouraging citizen participation. These efforts align with the principles put forth by Daron Acemoglu and James Robinson in their book "Why Nations Fail," which emphasizes the need for strong and inclusive institutions for ensuring sustainable development. Building institutions that accurately represent the aspirations and needs of the people is a crucial step, towards achieving long lasting prosperity for Somalia.
In conclusion; Somalia's induction into the EAC along with international support and substantial financial assistance marks the beginning of a promising new chapter. However, this journey is complex and fraught with challenges. As Somalia navigates this path it must do so with foresight unwavering dedication and an inclusive approach. The success of the nation will not shape its future but also contribute to the stability and prosperity of the entire East African region
Hassan Ali
Senior Research Assistant at University of Winnipeg- CANADA
Former Somali Diplomat at the United Nations- New-York
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