The East African Community's dream of a monetary union and a single currency may not be realised by the 2024 deadline.
A new report by Uganda's Ministry of East African Affairs blames this on lack of resources, which saw the bloc postpone the establishment of East African Monetary Institute (EAMI) – a precondition for having a single currency by 2024 – from 2015 to a yet to be announced date.
Now, without the money for the EAMI, which will evolve into the East African Central Bank, the region is taking the longer route – that of the East African Legislative Assembly. According to the East African Monetary Union roadmap, the EAMI was to be established by partner states – and not EALA.
Draft Bills
EAC spokesperson Richard Othieno Owora said the bloc is trying to establish EAMI through an EALA Act even though this will delay other institutions needed for EAMU to begin working. These include the East African Statistics Bureau, the East African Surveillance, Compliance and Enforcement Commission, and the East African Financial Services Commission.
"So far, the draft Bills for the establishment of the EAMI, the EASB, and EASCEC have been developed and negotiated by partner states," Mr Owora said.
He added that the Bills have been submitted for consideration by relevant organs of the EAC, after which they will be tabled. The draft Bill for the establishment of the East African Financial Services Commission is currently being developed with support from the International Monetary Fund.