Somalia, October 26, 2026 – Somalia’s membership in the East African Community (EAC) has opened the door to a larger regional market. But as the country looks for ways to finance public services and reduce its dependence on external assistance, a critical question remains: can regional integration translate into stronger domestic production, more jobs and higher government revenue?
Somalia became a full member of the EAC on 4 March 2024, joining Burundi, the Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda in the eight-country bloc. The Community’s regional integration framework offers opportunities for trade, investment and the movement of goods, services, capital and people
For Somalia, the potential is significant. The country has an extensive Indian Ocean coastline and economic opportunities in fisheries, livestock, agriculture, ports and other private-sector activities. Better access to regional markets could help Somali producers reach more customers, while clearer trade rules and improved transport links could make cross-border business easier
But membership alone does not guarantee those outcomes
The World Bank’s Somalia Public Finance Review 2026: The Next Stage of Public Finance identifies a narrow domestic revenue base as one of the country’s central fiscal challenges. Somalia collected domestic revenue equivalent to 6.3% of gross domestic product in 2025, compared with approximately 15–17% among peer countries, according to the review
The report also highlights the country’s dependence on imports and external inflows, alongside constraints in tax administration, institutional capacity and coordination between levels of government
These weaknesses matter for regional integration because the benefits of a larger market depend on whether businesses can produce competitive goods and services, reach customers, comply with trade requirements and operate within predictable regulatory systems
In its separate 2025 Economic Assessment of Somalia’s Accession to the East African Community, the World Bank identifies potential gains including access to a market of more than 300 million people, lower trade costs through the reduction of tariff and non-tariff barriers, greater investment appeal and participation in regional infrastructure projects
The assessment also makes clear that realising these benefits requires substantial institutional work. Somalia must align relevant laws and regulations with EAC frameworks, strengthen its institutions and coordinate implementation across government agencies
One important area is customs. Somalia’s public finance review calls for stronger customs administration, better compliance and more effective revenue collection. Regional integration could support these efforts through more consistent procedures and improved trade facilitation, but the country must ensure that reforms are implemented effectively and that the fiscal implications are carefully managed
Tariff changes require particular attention. Aligning Somalia’s customs arrangements with the EAC’s Common External Tariff could change the duties applied to different imported goods. The effects would depend on the products involved, the transition arrangements and how the reforms are implemented. It would therefore be premature to assume that regional integration will automatically increase customs revenue or lower prices for Somali consumers