In a significant move towards strengthening regional cooperation and economic integration, the East African Community (EAC) has welcomed Somalia as its newest member, with the war-torn nation set to contribute $7.8 million annually to the organization's budget.
The EAC, a regional intergovernmental organization comprising Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda, has long been hailed as a shining example of African nations working together to tackle shared challenges and foster sustainable development. With the addition of Somalia, the bloc now boasts a combined population of over 300 million people and a combined GDP of over $200 billion, making it a formidable economic and political force in the region.
According to Deng Aloor, the EAC's Chief of Cabinet, Somalia's financial contribution, which begins this month at the start of the organization's new fiscal year, comes at a critical juncture. "The economies of the EAC countries are facing severe international conditions, exacerbated by geographical conflicts and the effects of climate change," Aloor said during the EAC's annual meeting. "The skyrocketing price of fuel and the price of food that cannot be cut in the region have put a lot of pressure on foreign exchange."
Yet, despite these challenges, Aloor remains optimistic about the EAC's future, noting that the organization's overall income is projected to increase from 2.8% to 8.1% in the 2024/2025 fiscal year, thanks in part to Somalia's $7.8 million contribution.
The newfound revenue will be allocated towards a range of priorities, including security and peace in the region, business and investment, social and productive sectors, and the development of institutions. Specifically, $1 million has been earmarked for strengthening regional security and peace, while $7 million has been set aside for business and investment initiatives, and $6.2 million will be directed towards social and productive sectors.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The largest share of the EAC's budget, $66.3 million, will go towards supporting the member states and various organizations within the bloc. Additionally, $10.4 million has been allocated for the development of the EAC's institutions, which play a crucial role in facilitating regional integration and policy coordination.
Somalia's inclusion in the EAC is a significant milestone, as the Horn of Africa nation has long been plagued by political instability, economic challenges, and security threats posed by the Al-Shabaab militant group.
By joining the regional bloc, Somalia aims to leverage the EAC's economic and political clout to bolster its own development and security efforts, while also contributing to the broader integration of the East African region.
"The increase in the income of the organization came from 2.8% to 8.1%, and all parties said that they will continue to improve the increase in income," Aloor said, underscoring the EAC's commitment to sustained growth and prosperity.
The EAC's member countries have been working towards the creation of a common market, a unified customs system, and a shared currency by 2023, with the ultimate goal of achieving full economic and political integration.
Somalia's membership and financial contribution will undoubtedly strengthen these efforts, as the organization seeks to solidify its position as a key player in the global economic landscape.
