Ugandan ministers of Finance, Internal Affairs, Lands and East African Community Affairs have agreed to fast track the remaining requirements for Uganda to compete to host the East African Monetary Institute (EAMI) in Kampala.
Speaking during a virtual meeting chaired by Deputy Premier & Minister for East African Community Affairs Rebecca Kadaga on Tuesday, the ministers pledged to boost Uganda’s bid to host EAMI.
The East African Community Council of Ministers had set 1st July 2021 as the date for the inception of EAMI.
The EAMI is a transitional mechanism to the regional Central Bank that will issue the single currency, planned to be in place by the year 2024.
The East African Council of Ministers at its 40th meeting early this year directed the EAC Secretariat to convene a meeting of the Sectorial Council of Finance and Economic Affairs to develop an institutional structure for the EAMI by 30th September 2021.
The Council also directed the Secretariat to initiate the process of identifying the Institute’s host Partner State, under the EAC procedures. The country that will host the institute will have an advantage in the race to host the EA Central Bank.
Uganda, Kenya, Tanzania and Rwanda are all bidding to host EAMI. State minister for Finance Henry Musasizi on Tuesday reiterated the commitment of his ministry to support Uganda’s bid to host the institute.
EAMI is one of the four institutions expected to carry out much of the preparatory work for the creation of the East African Monetary Union. The other three institutions are the: EAC Financial Services Commission; EAC Surveillance, Compliance and Enforcement Commission, and; EAC Statistics Commission.
It is anticipated that the Monetary Union, the third pillar in the EAC Integration, will be in place in 2024 with the introduction of a common currency and the establishment of a regional central bank.
Uganda hosts the East African Development Bank, which it jointly owns with Kenya, Rwanda and Tanzania, the African Development Bank and other smaller shareholders.
There are plans to mainstream the EADB into the EAC structure, and the Council has urged the Bank’s Governing Council to consider the EAC development plans while setting the bank’s priorities.
The council of ministers urged partner states who are not members of the EADB to formally seek admission as members by acquiring shares. The Council maintained the current arrangement, whereby the East African Development Bank (EADB) Governing Council approves the appointment of external auditors since this is the best practice.
Ministers urged the EADB Governing Council to annually inform the Summit on the performance of the Bank.
On the integration of the region into the African Continental Free Trade Agreement (AfCFTA), the Council urged the Republic of Burundi, the Republic of South Sudan and the United Republic of Tanzania to ratify the treaty by 30th June 2021.