East African Community postpones single currency launch to 2031
via The Reporter Ethiopia2 min read
The East African Community has set 2031 as the new target for launching its single regional currency, following delays caused by the COVID-19 pandemic and broader economic challenges. The original target for implementation, set over a decade ago with the signing of the Protocol on the Establishment of the East African Community Monetary Union, was 2024. However, structural delays and incomplete convergence criteria necessitated pushing back the date. The common currency is anticipated to facilitate cross-border trade and enhance regional economic integration. The eight-nation bloc is also accelerating discussions on a confederation constitution. The EAC has already implemented a single passport to ease movement and boost regional trade. The upcoming common currency is expected to advance progress under the seventh EAC Development Strategy, which focuses on trade integration, digital transformation, regional infrastructure, social development, climate resilience, and progress toward a single currency. Before the single currency can be introduced, member states, including Kenya, Tanzania, Uganda, Rwanda, Burundi, South Sudan, the DRC, and Somalia, must meet specific macroeconomic convergence criteria. These criteria include an eight percent ceiling on headline inflation, a fiscal deficit capped at three percent of GDP, gross public debt capped at half of GDP, and sufficient forex reserves to cover at least 4.5 months of imports. Officials state that the establishment of support
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