By Baboloki Semele: Somalia has taken a major step towards strengthening its economic integration by officially joining the Agreement Establishing the African Export-Import Bank (Afreximbank), becoming the institution’s 53rd member state. The announcement, made on Monday, March 24, 2025, signals Somalia’s commitment to enhancing trade and economic modernization, particularly within the framework of the African Continental Free Trade Area (AfCFTA).
Afreximbank President Professor Benedict Oramah welcomed Somalia’s accession, emphasizing that the membership will provide the country’s public and private sectors with improved access to financing. “This will significantly enhance Somalia’s ability to fully exploit its economic potential,” he noted. Somalia’s Minister of State, Hirsi Jama Ganni, also expressed enthusiasm for the development, calling for alignment between Afreximbank’s initiatives and Somalia’s National Development Plan.
“This historic agreement demonstrates our commitment to becoming a key player in regional and continental development, particularly through trade and within the framework of AfCFTA,” said Ganni. “This partnership is important for Somalia’s ongoing reconstruction and economic diversification efforts, paving the way for financial and technical support.”
Somalia’s accession to Afreximbank follows its recent membership in the East African Community (EAC) and the successful completion of its debt relief process under the Heavily Indebted Poor Countries (HIPC) initiative. With these milestones, the country is poised for steady economic growth, with the International Monetary Fund (IMF) projecting GDP expansion of 4% between 2024 and 2025, driven by improved agricultural production and declining inflation.
The World Bank has highlighted Somalia’s participation in trade facilitation programs such as the Pan-African Payments and Settlements System as a crucial tool for addressing its trade deficit. Additionally, the country’s public debt reduction to 6.4% of GDP as of December 2023 lays a strong foundation for economic stability and trade expansion.
Somalia’s exports to EAC partner states, primarily consisting of livestock, were valued at approximately $0.8 million in 2022 and $0.75 million in 2023, according to the IMF. Membership in Afreximbank could facilitate increased trade and bolster Somalia’s industrial and commercial capacities.
Afreximbank has already initiated discussions with Somali stakeholders to enhance access to financing and support economic growth. The institution is targeting a doubling of intra-African trade finance to $40 billion by 2026—a goal from which Somalia stands to benefit significantly.
With Afreximbank’s support, Somalia is set to accelerate its economic transformation, positioning itself as a key player in regional trade and investment. The move aligns with broader efforts to integrate the nation into the continental economy, opening up new opportunities for sustainable growth and development.