East African Community Urged to Accelerate Single Currency Implementation for Enhanced Regional Trade

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The East African Community (EAC) has been called upon to expedite the implementation of a single currency within the region to facilitate trade and economic integration. The East African Budget Network (EABN) expressed concerns that the EAC member states have not made sufficient progress in delivering on the pending actions outlined in the East African Monetary Union roadmap, aimed at establishing a single East African currency.

Julius Mukunda, the executive director of the Civil Society Budget Advocacy Group (CSBAG), voiced these concerns during the East African Monetary Union Civil Society Summit held in Kampala on September 1. He pointed out that the EAC member states have pushed the targets for single currency implementation from 2024 to 2031, and there is uncertainty about whether they will achieve even the revised deadline.

The initial plan to introduce a single East African currency by 2024 faced a setback in 2019 when the EAC Council of Ministers determined that the deadline was unattainable. This decision extended the timeline for implementing a single currency to 2031 with the goal of eliminating transaction costs associated with currency exchange and reducing volatility in cross-border trade.

To achieve a single currency, EAC partner states aimed to harmonize monetary and fiscal policies, financial systems, payment and settlement systems, financial accounting and reporting practices, policies and standards on statistics, and establish an East African Central Bank. However, the EABN attributed the delays to concerns among member states about potential loss of sovereignty.

Mukunda highlighted the need for EAC citizens to hold their governments accountable and increase the pressure on politicians to expedite the East African Monetary Union. He emphasized the role of civil society organizations (CSOs) in driving the implementation of agreed actions and called on CSOs to play a crucial role in achieving the monetary union.

The Commissioner at the Ministry of Finance, Planning, and Economic Development, Dr. Albert Musisi, acknowledged the vital role of CSOs in advancing the East African Monetary Union. However, he also outlined challenges such as fears of losing national sovereignty and the ability to make independent decisions, which have hindered the full implementation of the union.

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