Somalia joining EAC

[Nomadic lord]

very important stuff happening right now this will either make us or break us.

 

[Macawisley]

Visa free into Nairobi

 

[0117]

Will that mean Kenyan khat will not be taxed? Marduuf is already 30 - 40 Dollars

Somali citizen entering Visa free to Kenya.

I can see few benefits.

It's a custom union and these three aspects apply;

A Common External Tariff (CET) on imports from third countries

Duty-free trade between the member states

Common customs procedures

Somalia stands to lose out millions of dollars of lost revenue due to losing out on Import TAX and the gov doesn't even have appropriate measures to implement an effective sales TAX to compensate for it

Plus Somalia doesn't even control its own use of import TAX. For example in Puntland the state collects their own import TAX on goods and so will they stop collecting import TAX on Khat or other goods from those countries and lose out on revenue

On that technical note of not controlling the country's TAX/Customs policy, Somalia might not even be eligible once the assessment starts.

 

[FBIsomalia]

SL is already independent. you somalians dont control us

Then put your flag In UN newyork. Crazy qaat addicts

 

[warside]

It's a custom union and these three aspects apply;

A Common External Tariff (CET) on imports from third countries

Duty-free trade between the member states

Common customs procedures

Somalia stands to lose out millions of dollars of lost revenue due to losing out on Import TAX and the gov doesn't even have appropriate measures to implement an effective sales TAX to compensate for it

Plus Somalia doesn't even control its own use of import TAX. For example in Puntland the state collects their own import TAX on goods and so will they stop collecting import TAX on Khat or other goods from those countries and lose out on revenue

On that technical note of not controlling the country's TAX/Customs policy, Somalia might not even be eligible once the assessment starts.

On one hand FGS relies on international trade tax and most of the revenue comes from that source, on the other hand the trade between Somalia and these countries isn't that much, even the taxes on khat isn't that much (11 million in 2021) otherwise Farmajo wouldn't ban Kenyan Khat, but maybe the trade volume will increase if these taxes are lifted.
Since you mentioned sales tax, there's a trick that FGS and Somaliland use to make sure they get that money, they take sales taxes at the point of entry in Mogadishu and Berbera ports (5%) and PL started it recently in a smaller scale (0.2%), so even if the trade becomes duty free the sales tax remains.

 

[Abaq]

If this happens and the borders opens, Kismaayo and Jubbaland will boom

 

[Dima&Damo]

We should start an mining company called sofala

 

[NinWero]

You can't believe how happy some people I know are about this, Somali businessmen from Djbouti to Jubbaland are celebrating.

I was speaking to my brother-in-law whos based between Mogadishu and Uganda, he is celebrating.

Massive opportunities for Somalis, with access to a 300 million people market.

 

[Abaq]

You can't believe how happy some people I know are about this, Somali businessmen from Djbouti to Jubbaland are celebrating.

I was speaking to my brother-in-law whos based between Mogadishu and Uganda, he is celebrating.

Massive opportunities for Somalis, with access to a 300 million people market.

Exactly. Sugar smugglers between Jubbaland and NFD already make a killing, if the trade is legalised and other goods are allowed in, you will end up with an interconnected market from Xamar to Kampala. Just imagine that

 

[InaShaqalle]

People celebrating now I wonder if they'll still be celebrating if and when the EAC becomes a single country called East African Federation?

 

[bidenkulaha]

People celebrating now I wonder if they'll still be celebrating if and when the EAC becomes a single country called East African Federation?

It can be a EU with freedom of movement and single currency.

I would support this

 

[InaShaqalle]

It can be a EU with freedom of movement and single currency.

I would support this

That would be a better way, it should be called 'East African Confederation' to signal it will be like the EU.

In any case Somalia itself needs to centralise under a strong central government if we are going to integrate into the EAC

 

[Diaspora ambassador]

That would be a better way, it should be called 'East African Confederation' to signal it will be like the EU.

In any case Somalia itself needs to centralise under a strong central government if we are going to integrate into the EAC

We can add the necessary laws to keep the somali territories safe like for instance one can reside only in Benaadir with a fed citizenship, the other fms you will need a tribal one which is only issued to members of one of our tribes.

 

[Hilmaam]

 

[FBIsomalia]

Somalia wasnt been reject?

 

[Abdalla]

This could be the most consequential decsion HSM will make during his presidency. Removing all trade barriers between Somalia and the EAC will mean faster GDP growth. Very big deal.

It is a big deal under the right circumstances. The circumstances are not ideal for Somalia at the moment. A failed country that is slowly recovering is in a very bad negotiation spot to enter supranational agreements. We’ve seen how terrible IGAD has been to Somalia. I would wait 10 years.

I truly believe Somalia can catch up to other EAC nations in 10 years if we defeat Shabab, implement 1m1v, and build 2 major roads (>500km).