East Africa: EAC Kickstarts Monetary Union Move
The roadmap for the EAMU provides for its establishment over a ten-year periodThe EA Monetary Protocol was signed in Kampala, Uganda, in November 2013 during the EAC Heads of State Summit.
It has since then
been ratified by the five member states of the Community. Its objective is to promote and sustain the East African Monetary Union (EAMU), a zone of sound monetary policy and prudent fiscal policies to reinforce the monetary policies.
The process to lay the foundation for establishment of the EAMU is on gear, said the EAC Secretary General, Liberat Mfumukeko.
The four key institutions that will support the EAMU have been launched, and
include the EAC Monetary Institute, the EAC Statistics Bureau, the EAC Financial Services Commission and the EAC Surveillance, Compliance and Enforcement Commission.
These institutions will install
a robust institutional framework to ensure compliance and safeguard the convergence process in order to establish a strong monetary union.
Mr Mfumukeko outlined his priorities for the next five years, among them being the consolidation of the Single Customs Territory (SCT) covering all imports and intra-EAC traded goods.
Free movement of skilled labour across the six partner states and deliberate investments in skills development, technological advancement and innovation should be enhanced as well.