Egypt-Somalia trade soars by 88pc in first half of 2024

Trade between Egypt and Somalia experienced significant growth in the first half of 2024, reflecting stronger economic ties between the two nations.

The total trade value reached Sh 7.6 billion, marking an 88 per cent increase from the Sh 4 billion recorded in the same period of 2023.

Egypt's exports to Somalia were the main driver of this growth. In the first half of 2024, Egypt exported goods worth Sh 7.4 billion to Somalia, an 83 per cent increase compared to the previous year. Key exports included Sh 3.7 billion in starch and grain products, Sh1.3 billion in sugar products, and Sh 390 million in pharmaceutical products.

Egypt's imports from Somalia also saw an increase. The value of imports reached Sh 390 million, a significant rise from the Sh39 million recorded in the first half of 2023. The primary imports from Somalia included live animals valued at Sh 234 million, gum and plant extracts worth Sh36 million, and oilseeds and fruits at Sh2 million.

This increase in trade highlights the strengthening of economic relations between Egypt and Somalia. The increase in both exports and imports indicates that both countries gain from the interchange of goods, which may open the door for future cooperation in other sectors.

However, the rise in trade contrasts with a decline in Somali investments in Egypt. In the fiscal year 2022/2023, Somali investments in Egypt amounted to Sh 1 million, a decrease from the Sh 20 million invested in 2021/2022. This reduction implies a shift in investment patterns, which may necessitate further investigation to determine the causes for it.

The trade data comes at a time when Egypt and Somalia are deepening their ties in other areas, particularly in security and military cooperation. On Wednesday, Somalia and Egypt entered a phase of military cooperation following the signing of a defence agreement aimed at strengthening security ties between the two nations.

The announcement of the defence agreement was made by Villa Somalia after Somali President Hassan Sheikh Mohamud, during his official visit to Cairo, held bilateral talks with Egyptian President Abdel Fattah El-Sisi at Cairo's Al-Ittihadiya Palace.

During a joint press conference, President Hassan described the agreement as a crucial step in the fight against terrorism. He referred to it as a model for future collaboration on regional and global security issues.

"This defence pact is a testament to a future of common defence against the international terrorism we are combating both at home and abroad," said President Hassan. He added that the agreement serves as a "blueprint for the exchange of knowledge and expertise in the pursuit of regional, continental, and international peace and security."

The rise in trade and the signing of the defence agreement both point to a growing partnership between Egypt and Somalia. The economic and military cooperation between the two countries is likely to have broader implications for the region, as both nations seek to enhance their roles on the regional and global stage.

As trade continues to grow and security ties deepen, Egypt and Somalia appear to be laying the foundation for a stronger and more cooperative relationship in the years to come.