EAC Single Currency: Secretariat proposes phased rollout to avoid deadlocks

The East African Community secretariat has proposed a phased rollout of the regional single currency, suggesting that countries ready to adopt the monetary union should move forward to prevent negotiations from stalling.

EAC Secretary-General Stephen Patrick Mbundi made the proposal during a meeting with Ugandan President Yoweri Museveni in Nakasero, warning that persistent exchange rate fluctuations among the eight member states are harming businesses and ordinary citizens.

“Our citizens are really suffering because of fluctuations in currency,” Mbundi said. “It is a big hindrance to business.”

Under the new proposal, the bloc would abandon the requirement for all eight member countries to meet economic convergence criteria simultaneously before launching the common currency.

“Eight countries cannot converge at the same time,” Mbundi said. “If we could start with three or four countries, then the others can join later. Otherwise, we are not doing a good service to the population on the issue of the monetary union.”

Museveni, the current EAC chairperson, expressed support for accelerated integration during the talks, which also focused on regional infrastructure and trade cooperation. First Deputy Prime Minister and Minister for East African Community Affairs Rebecca Alitwala Kadaga noted that leadership faces a significant task in delivering on the final stages of integration.

“I am really hoping that during your tenure we should be able to achieve at least the last two pillars, integration and monetary union,” Kadaga said.

The high-level meeting also addressed broader economic strategies, including a proposal to levy financial contributions on non-member countries exporting goods into the East African market. Museveni welcomed the initiative, describing the import levy plan as innovative.