Countries in the East African region under the East African Community (EAC) are set to launch a new unified bank and currency for the member states. Details of the development revealed that the Central Bank of East Africa, which should host the East African Monetary Institute, will implement a single currency structure for all members of the EAC.
EAC started with a customs union between Kenya, Uganda, and Tanzania in 1927 which metamorphosed over years into the East African Community on 7 July 2000. History of the organization shows that the treaty for the establishment of the East African Community entered into force on the above-stated date comprising of Kenya, Uganda, and Tanzania before Rwanda and the Republic of Burundi became full members on 1 July 2007.
Dr. Peter Mathuki, the Secretary General of EAC said that one of this year’s agendas for the commission is a decision on the location of the EAMI. This decision will be made by the Council of Ministers of EAC, he added.
EAMI to serve over 300 million citizens
Further details about the project show that the EAMI will serve the over 300 million people of the East African nations which is capable of attracting more foreign investors into the zone and Africa at large. Another revelation about the EAC highlights that the intra-regional trade which stood at $10.17 billion in September 2022 is increasing.
With the ease from the COVID-19 outbreak and elimination of 257 Non-Tariff Barriers (NTBs) by the least of each representing nation, Peter stated that the EAMI will galvanise the fiscal and monetary policy of member states. It will also provide ease for business opportunities and movement for people across each member nation.
The organization is made up of seven nations – the Republic of Burundi, the Democratic Republic of the Congo, the Republic of Kenya, the Republic of Rwanda, the Republic of South Sudan, the Republic of Uganda, and the United Republic of Tanzania – is also at work to help resolve the crisis in the Democratic Republic of Congo, the Secretary-General said.
The ECOWAS, like its counterpart, is another cross-border mission in Africa that has instituted plans to have a unified currency for all its member states to aid bilateral relationships and boost the economic activities of each state.
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