Regional central bank governors say progress has been made toward monetary integration, but no member state has yet met all the criteria required for a common currency.

Kampala, Uganda (Running Africa) — The East African Community (EAC) has reaffirmed its commitment to launching a single regional currency by 2031, even as member states acknowledge they have yet to meet the economic conditions required to establish a monetary union.

The renewed commitment was announced during the 29th Ordinary Meeting of the EAC Monetary Affairs Committee in Kampala, where central bank governors and senior financial officials from the bloc’s eight member states reviewed progress toward regional monetary integration.

While officials reported significant institutional progress, they conceded that important economic hurdles remain before the proposed common currency can become a reality.

EAC Advances Regional Monetary Integration

The committee highlighted progress in several key areas supporting the planned monetary union, including the harmonization of monetary policy frameworks, stronger financial reporting and risk management systems, and the continued expansion of the East African Payment System (EAPS).

Officials said the payment system is improving cross-border transactions and supporting regional trade by enabling faster, more efficient financial settlements among member states.

Central bank governors also pointed to stronger policy coordination through joint economic research, enhanced information sharing, and closer collaboration among regional financial institutions.

Member States Yet to Meet Monetary Union Benchmarks

Despite these advances, the committee acknowledged that no EAC member state has fully satisfied all four macroeconomic convergence criteria required to join the monetary union.

Under the EAC Monetary Union framework, countries must:

• Maintain inflation at or below 8%.
• Keep fiscal deficits below 3% of GDP, including grants.
• Limit public debt to 50% of GDP in net present value terms.
• Maintain foreign exchange reserves covering at least 4.5 months of imports.

Meeting these benchmarks is considered essential to ensuring long-term economic stability and the successful adoption of a shared regional currency.

Governors Push for Faster Reforms Ahead of 2031 Deadline

To accelerate progress, the committee called on member states to expedite implementation of the EAC Monetary Union Roadmap and endorsed the creation of a peer-review mechanism to strengthen economic oversight and accountability.

Officials believe the proposed review system will help governments monitor compliance with convergence targets, identify policy gaps, and encourage reforms needed to meet the 2031 deadline.

Single Currency Seen as Key to Regional Economic Integration

The planned common currency forms part of the EAC’s broader vision of deeper regional integration, aimed at reducing transaction costs, boosting intra-African trade, improving financial stability, and strengthening economic cooperation across East Africa.

Although significant policy and fiscal challenges remain, the bloc’s leaders say the 2031 target remains achievable if member states accelerate economic reforms and maintain closer coordination in the years ahead.

The renewed commitment underscores the EAC’s long-term ambition to build a more integrated regional economy that can compete more effectively in global markets while facilitating trade and investment across East Africa.