Somalia Pushes Trade Reform as EAC and AfCFTA Membership Expose Customs Challenges

MOGADISHU, Somalia — Somalia has stepped up efforts to overhaul its trade and customs system as government officials, regional lawmakers, business leaders and international development partners warned that the country’s membership in the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA) will yield limited economic gains without urgent implementation of long-delayed trade reforms.

The National Trade Facilitation Committee (NTFC) convened in Mogadishu for a high-level strategy and planning meeting aimed at identifying practical measures to reduce trade costs, improve border efficiency and position Somali businesses to compete in regional and continental markets.

The discussions reflected a growing recognition that Somalia’s integration into Africa’s largest trading blocs represents only the first step. Translating those memberships into increased exports, investment and economic growth will depend on modernising customs administration, removing regulatory bottlenecks and strengthening coordination among government agencies.

Trade agreements create opportunity and pressure

Opening the meeting, Ibrahim Ahmed Osman, Director General at the Ministry of Commerce and Industry, described Somalia’s accession to the AfCFTA as a landmark milestone that expands opportunities for trade, investment and economic integration across Africa.

He said the ministry is prioritising reforms designed to simplify cross-border trade, strengthen institutional coordination and improve the competitiveness of Somali businesses.

According to Osman, efficient trade facilitation will be critical to enabling Somali exporters to access larger markets while creating a more predictable environment for domestic and foreign investors.

EAC membership demands legal and regulatory alignment

Addressing the committee, Rutazana Francine, a Member of the East African Legislative Assembly (EALA), urged Somalia to accelerate the harmonisation of its trade legislation with EAC standards.

She said aligning customs procedures, strengthening product quality standards and eliminating non-tariff barriers are essential if Somalia is to fully benefit from the regional bloc’s common market.

While EAC membership offers Somali businesses preferential access to one of Africa’s fastest-growing regional markets, Francine noted that market access alone cannot generate economic benefits without reforms that facilitate the smooth movement of goods across borders.

Private sector seeks faster implementation

Representing Somalia’s business community, Yasin Ibaar, Interim Chairman of the Somali Chamber of Commerce and Industry, said the country’s regional integration provides local companies with access to a consumer market exceeding 300 million people.

However, he stressed that businesses will only realise those opportunities if customs clearance becomes faster, trade corridors become more efficient and regulations are implemented consistently across government institutions.

He argued that reducing administrative delays and improving transparency would significantly lower the cost of doing business while increasing the competitiveness of Somali exports.

Success measured by results, not meetings

For the committee itself, implementation emerged as the central theme.

Sadaq Mohamed, Coordinator of the National Trade Facilitation Committee, said the NTFC’s effectiveness should be judged not by the number of meetings held or strategies adopted, but by measurable reforms that remove obstacles to trade and expand export opportunities.

He called for stronger collaboration between government institutions and the private sector to ensure agreed reforms translate into tangible improvements for traders.

World Bank highlights private sector role

Speaking during the session, Sonia Plaza, Senior Economist at the World Bank and Task Team Leader for the Horn of Africa DRIVE Project in Somalia, emphasised that sustained cooperation between public institutions and the private sector remains essential for improving trade competitiveness.

She said reducing the cost and complexity of cross-border trade would strengthen Somalia’s integration into regional value chains, attract investment and create new opportunities for economic growth.

A critical phase in Somalia’s economic integration

The meeting comes as Somalia enters a decisive stage in implementing its regional trade commitments.

The NTFC serves as the federal government’s principal coordination platform for implementing the World Trade Organization’s Trade Facilitation Agreement, bringing together public institutions, customs authorities, business associations and development partners to oversee reforms aimed at simplifying trade procedures and aligning Somalia’s regulatory framework with international standards.

Somalia formally joined the East African Community in 2024 and ratified the African Continental Free Trade Area Agreement in October 2025, significantly expanding potential market access for Somali producers and exporters.

However, the country remains an observer in the World Trade Organization while continuing its accession process.

Earlier this year, the United Nations Conference on Trade and Development (UNCTAD), with support from the African Development Bank, conducted an intensive capacity-building programme for the NTFC in Mogadishu, introducing a trade reform monitoring framework designed to help track implementation and institutional performance.

While Somalia’s regional integration has created unprecedented commercial opportunities, officials at the meeting acknowledged that the country’s ability to capitalise on them will depend less on signing trade agreements than on delivering the institutional reforms needed to make cross-border commerce faster, cheaper and more predictable.

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