Uganda seeks free trade in EAC

Summary:

• President Museveni advocates increased free trade as Somalia formally joins the East African Community, marking the expansion of the bloc amid regional challenges and economic developments.

President Yoweri Museveni of Uganda has advocated for increased free trade within the East African Community (EAC) bloc. This call was made during a ceremony in Entebbe on December 15, where Somalia, recently admitted into the EAC, formally joined the eight-nation bloc.

Expressing satisfaction with the regional unity, President Museveni stated, “I am glad that the East African region is assembling and regrouping like it used to be before the colonial divide.”

The formal entry into the EAC was marked by the signing of the Treaty by Somalia’s President Hassan Sheikh Mohamud and the current Chair of the EAC Summit of Heads of State, President Salvar Kiir of South Sudan. President Kiir emphasized that Somalia’s inclusion in the bloc would enhance both regional and continental trade, particularly within the framework of the African Continental Free Trade Area (AfCFTA).

The 23rd ordinary summit of the EAC Heads of State, held on November 24, 2023, admitted Somalia as the eighth member state. President Mohamud pledged support for the integration process, aiming to benefit from the free movement of goods, people, and services.

Despite Somalia’s ongoing security challenges, the EAC Heads of State directed the Council of Ministers to develop an integration roadmap for Somalia and report progress at the next summit. The accession of Somalia accelerates the expansion of the EAC, which initially had three founding members and has grown to include eight nations.

Somalia’s admission is expected to bolster intra-regional trade, given its abundant fisheries resources along its 3,333 km coastline. The signing of the Treaty coincided with the lifting of the 31-year-old arms embargo on Somalia, providing the country with an opportunity to address emerging security challenges. President Mohamud highlighted that this decision would support stability and economic development.

Moreover, Somalia secured a $4.5 billion debt write-off from global lenders, concluding a decade-long process of negotiations and reforms.