East African Community single currency target pushed back to 2031

JUBA – The East African Community (EAC) on Friday reviewed progress towards a single currency regime, acknowledging the initial 2024 target was no longer achievable.

The Monetary Affairs Committee (MAC) held its 27^th ordinary meeting in Juba, South Sudan’s capital, to discuss the revised roadmap.

The meeting was chaired by Dr. James Alic Garang, Governor of the Bank of South Sudan and current MAC chairperson.

Governors and senior officials from central banks of EAC partner states and the EAC Secretariat attended the meeting, including Edouard Normand Bigendako, central bank governor of Burundi, Kamau Thugge, central bank governor of Kenya, and Emmanuel M. Tutuba, central bank governor of Tanzania.

A communique issued after the meeting stated that the committee was revising timelines with partner states, with a final proposal expected for the Council of Ministers.

“The meeting also reviewed the status of implementation of previously agreed actions towards the establishment of the East African Monetary Union (EAMU), with a focus on the decisions of the 26^th ordinary MAC meeting held in Bujumbura in March 2023,” the communique said.

The committee also assessed progress on establishing EAMU supporting institutions.

“Notwithstanding the above progress, the Committee reaffirmed its commitment to implementing the remaining activities set out in the revised East African Monetary Union roadmap within the set timelines, in order to achieve the monetary union by 2031,” the communique added.

The governors pledged continued collaboration with relevant authorities to advance regional integration.

“The Governors resolved to review the performance of the convergence criteria taking into account the revised timelines for the achievement of the East African Monetary Union,” the statement said.

The communique also welcomed the Central Bank of Somalia as the newest member of the EAC Monetary Affairs Committee and pledged support for its integration into the EAC.

The delay in implementing a single currency is expected to prolong the burden of costly currency conversion and exchange rate risks for regional traders and travelers, potentially impacting intra-regional trade volume.