Economic Factors Affecting Regionalism: The Case of Somalia's Integration Into The East African Community (EAC).

Abstract

This study, titled Assessing the Economic Factors Affecting Regionalism in East Africa: The Case of Somalia's Integration into the East African Community (EAC), investigates the critical economic elements shaping regionalism in East Africa, focusing on Somalia's accession to the EAC. The study area includes Somalia and the broader East African region. The research is motivated by Somalia’s persistent economic challenges which complicate its full participation in the EAC’s frameworks, thus raising concerns about the risks and opportunities of its integration. The primary objectives are to examine key economic, institutional, and policy factors influencing Somalia’s integration; to assess potential economic opportunities and challenges; and to analyze Somalia’s role in advancing the EAC’s broader regional objectives. The significance of the study lies in its contribution to scholarly discourse on regionalism in Africa and its practical implications for policymakers seeking to navigate the complex dynamics of integrating fragile economies into regional blocs. The study is limited to examining Somalia’s economic conditions, trade patterns, governance challenges, and interdependence with EAC states from the early 2000s to 2025.The literature review is structured around several core themes: economic factors influencing regional integration, progress and challenges of regionalism within the EAC, and the specific impact of Somalia’s membership. The theoretical framework draws primarily on Neoclassical Economic Theory and Institutional Theory, which together provide a lens to analyze market dynamics and governance structures critical to regionalism. Employing a descriptive research design grounded in a pragmatic paradigm, the methodology incorporated both quantitative and qualitative methods, including structured questionnaires, semi-structured interviews, and document analysis. Pre-testing of data collection instruments carried out in Nairobi, Kenya, was chosen for its regional significance and accessibility to knowledgeable respondents. A stratified random sampling strategy was used to select a diverse group of economic officials, trade experts, and business leaders, targeting a sample size of 100–150 participants. The research pointed out that the weak institutions in Somalia, the poor infrastructure, and limited human resources were the main reasons for the country's drawback in the integration with the EAC. Moreover, it uncovered a notable disconnection between the informal economy of Somalia and the EAC's formal trade systems. Furthermore, lack of governance and coordination were identified to be the cause of the delay in the implementation of regional protocols. this study recommends that EAC and Somalia should work together to enhance the institutional capacity and infrastructure in order to make the economic integration effective. The findings may benefit policymakers within the EAC and Somali government by informing policy strategies that can facilitate smoother integration. Additionally, business leaders, trade associations, and regional development organizations will gain insights to support economic collaboration and investment planning.