East African Central Bank Governors Reaffirm Push for Single Regional Currency by 2031

ARUSHA, Tanzania (XOL Africa) — Central bank governors from the East African Community have reaffirmed their commitment to accelerating the creation of a single regional currency by 2031 and deepening financial integration across the bloc.

The commitment was made at the 29th Ordinary Meeting of the EAC Monetary Affairs Committee, held July 24 in Kampala, Uganda. The committee comprises governors of the central banks of EAC member states and is responsible for coordinating monetary and financial sector policies.

The meeting was chaired by Michael Atingi-Ego, governor of the Bank of Uganda and chairperson of the Monetary Affairs Committee. It brought together central bank governors and senior officials from EAC partner states, as well as representatives of the EAC Secretariat.

The committee reviewed regional and global economic conditions and said East Africa had remained resilient despite heightened uncertainty linked to elevated energy prices, higher shipping costs and persistent geopolitical tensions.

Regional economic growth is projected at 5.2% in 2026, compared with a projected 4.3% average for sub-Saharan Africa, according to the committee.

The committee also said inflationary pressures had eased, with average headline inflation across the EAC falling to 6.7% in the 2025/2026 financial year from 9.6% in 2024/2025.

Regional currencies are expected to remain broadly stable, supported by diversified foreign exchange inflows and reforms aimed at deepening domestic foreign exchange markets, the committee said.

A key focus of the meeting was implementation of the revised roadmap toward the East African Monetary Union and the establishment of a single East African currency by 2031.

The committee cited progress in modernizing monetary policy frameworks, strengthening macroeconomic surveillance, improving regional policy coordination, promoting use of the East African Payment System and building institutional capacity among central banks.

However, the committee acknowledged that EAC partner states have made uneven progress in meeting agreed macroeconomic convergence criteria. It called for renewed efforts to strengthen macroeconomic stability, improve peer review mechanisms and accelerate national convergence programs.

“The East African Monetary Union remains a strategic objective that demands sustained commitment, policy harmonisation and strong regional institutions,” Atingi-Ego said.

“While our commitment to the Monetary Union is unwavering, we must accelerate implementation, strengthen peer review mechanisms and reinforce national action plans to ensure we remain on course towards a single East African currency by 2031,” he said.

Annette Ssemuwemba, EAC deputy secretary-general in charge of customs, trade and monetary affairs, said the committee has a central role in advancing regional integration.

“The Monetary Affairs Committee plays a pivotal role in steering one of the EAC’s most important integration pillars,” Ssemuwemba said.

She said the EAC’s 7th Development Strategy places renewed emphasis on accelerating the monetary union agenda by completing legal and technical processes and supporting partner states in implementing macroeconomic convergence programs.

“Partnership, consensus and shared responsibility have shaped the work of the Committee. Together, we must continue strengthening our institutions, deepening regional integration and creating more opportunities for the people of East Africa,” Ssemuwemba said.

The committee agreed to accelerate implementation of the monetary union roadmap through stronger peer review mechanisms and the operationalization of the EAC 7th Development Strategy for 2026/27 to 2030/31.

The meeting also reviewed progress on the EAC Cross-Border Payment System Masterplan, which is intended to modernize and integrate regional payment systems.

The committee welcomed the start of implementation activities, including the preparation of annual work plans, prioritization of key initiatives and mobilization of financial and technical resources.

The masterplan is expected to make cross-border payments easier, reduce transaction costs, improve interoperability, expand financial inclusion and support intra-EAC trade.

The committee also said the region’s financial sector remained stable and resilient, supported by strong capital and liquidity buffers. It called for greater regional cooperation to address emerging cybersecurity risks that could threaten financial stability.

The EAC Monetary Affairs Committee plays a central role in coordinating monetary and financial policies among partner states and preparing the region for the eventual introduction of a single East African currency.