Somalia is positioning its entry into the East African Community as a gateway to wider business opportunities, with the country seeking more trade, investment and industrial links with Kenya and other member states.
The move is expected to give Somali businesses a wider market while opening fresh areas for regional investors looking to expand into the country.
Somalia has identified several sectors where it believes stronger ties with the EAC can support economic growth. They include agriculture, livestock, fisheries, manufacturing, tourism, financial services and transport and logistics.
The country also has natural resources that remain largely untapped, including possible offshore oil and gas deposits. Its marine and fisheries sector is another area being promoted as Somalia looks to grow its blue economy and attract more business.
A major advantage for Somalia is its location and coastline, which stretches for more than 3,000 kilometres. The country sits along the Gulf of Aden and the Indian Ocean, giving it links to shipping routes serving East Africa, the Middle East and international markets.
This location has increased interest in developing Somalia as a trade and transit centre, with transport and logistics among the areas where the country wants to draw investment.
The push for closer business ties comes almost two-and-a-half years after Somalia joined the EAC, becoming the regional organisation's eighth member.
Somalia was admitted on November 24, 2023, before becoming a full member on March 4, 2024, after completing the ratification process.
Since then, Somali and East African business leaders have been looking at ways to make the country's membership more useful to businesses on both sides.
The East African Business Council (EABC), EAC, Somali Chamber of Commerce and Industry and German development agency GIZ, together with policy makers, have identified several sectors where Somalia could deepen its economic connection with the region.
Manufacturing, logistics, tourism, financial services and value addition have emerged as some of the main areas for possible cooperation and investment.
The groups are also seeking to address trade barriers and improve regional value chains while encouraging businesses to invest across borders.
EAC deputy secretary general in charge of customs, trade and monetary affairs Annette Mutaawe urged companies to make better use of the opportunities created by Somalia's membership.
“The private sector should leverage the enlarged regional market, strengthen value chains and pursue cross-border investment opportunities,” said Annette Mutaawe, EAC deputy secretary general in charge of customs, trade and monetary affairs.
Somalia's Minister of Commerce and Industry Gamal Hassan separately urged businesses to make use of opportunities offered by both the EAC and AfCFTA.
He singled out manufacturing, value addition and industrial development as areas that could help Somalia increase its role in regional trade.
The country is seeking to move beyond simply selling goods and instead build more industries that can process products locally and add value before they reach regional markets.
For the EAC, Somalia's location also provides an additional maritime link between the region and major markets outside Africa.
Mogadishu sees its position along the Gulf of Aden and Indian Ocean as an advantage that can support shipping, trade and investment while connecting East African businesses to Middle Eastern and international routes.
The country is therefore looking for investment in transport and logistics as it works towards becoming a regional trade and transit hub.
Somalia's membership also gives its businesses access to the wider EAC market, which has more than 300 million people. This creates room for Somali companies to expand beyond the local market while allowing businesses from other member states to explore opportunities in Somalia.
The EAC currently has eight members — Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, the Democratic Republic of Congo and Somalia.
The regional business push is aimed at making Somalia's membership translate into greater commercial activity, stronger supply links and increased investment.
For Mogadishu, the focus is on using its natural resources, coastline, location and productive sectors to build a stronger place within the East African economy.
For businesses across the region, the country is being presented as a market with opportunities in trade, manufacturing, logistics, tourism, financial services, agriculture, livestock and the marine economy.