East African Community reiterates plan to launch single currency by 2031

The East African Community has reaffirmed its ambition to introduce a single regional currency by 2031, while urging member states to accelerate reforms needed to meet agreed economic convergence targets.

The commitment was made during the 29th Ordinary Meeting of the EAC Monetary Affairs Committee held in Kampala, Uganda, where central bank governors and senior officials reviewed progress toward the East African Monetary Union.

The committee said the region remains resilient despite global economic headwinds, including high energy prices, rising shipping costs and geopolitical tensions.

It projected regional economic growth at 5.2 percent this year, above the 4.3 percent forecast for Sub-Saharan Africa. Inflation has also eased, with average headline inflation falling to 6.7 percent in the 2025-2026 financial year from 9.6 percent a year earlier.

While welcoming progress in modernizing monetary policy frameworks, strengthening macroeconomic surveillance and expanding the use of the East African Payment System, the committee noted that partner states have made uneven progress in meeting the agreed macroeconomic convergence criteria.

"The East African Monetary Union remains a strategic objective that demands sustained commitment, policy harmonisation and strong regional institutions," Michael Atingi-Ego, governor of the Bank of Uganda and chairperson of the EAC Monetary Affairs Committee, said.

"While our commitment to the Monetary Union is unwavering, we must accelerate implementation, strengthen peer review mechanisms and reinforce national action plans to ensure we remain on course towards a single East African currency by 2031," he said.

The committee also endorsed faster implementation of the EAC Cross-Border Payment System Masterplan, which aims to facilitate seamless cross-border payments, improve interoperability, lower transaction costs, promote financial inclusion and boost intra-EAC trade.

In addition, members emphasized the need for stronger regional cooperation to address emerging cybersecurity risks as digital financial services expand across the bloc.

sharon@chinadailyafrica.com