East African Community (EAC) central bank governors have reaffirmed their dedication to launching a single regional currency by 2031. This decision was reached during the 29th Ordinary Meeting of the EAC Monetary Affairs Committee (MAC) held on July 24, 2026, in Kampala, Uganda.
Chaired by Bank of Uganda Governor Michael Atingi-Ego, the meeting included governors and senior officials from central banks of Kenya, Tanzania, Somalia, Burundi, South Sudan, Rwanda, and representatives from the EAC Secretariat. Discussions took place amid global economic uncertainties driven by rising oil prices and shipping costs linked to the Middle East conflict.
Regional Economic Outlook
Despite global headwinds, the EAC is projected to sustain strong economic growth. The region's growth is expected at 5.2% in 2026, outperforming the Sub-Saharan Africa average of 4.3%. Inflation eased to 6.7% in the 2025/26 fiscal year from 9.6% the previous year and is forecasted to remain moderate if geopolitical tensions ease.
Regional currencies are anticipated to stay broadly stable, supported by diversified foreign exchange inflows and ongoing reforms to strengthen domestic forex markets.
Progress on Monetary Union Roadmap
The committee reviewed advancements in the East African Monetary Union (EAMU) roadmap, highlighting efforts to harmonize monetary policies, improve data and risk management, enhance policy coordination, promote the East African Payment System, and build capacity within central banks.
However, uneven progress persists. No Partner State has yet met all four macroeconomic convergence criteria required for the union. Challenges include maintaining macroeconomic stability while financing infrastructure amid a volatile global environment.
Governors urged Partner States to bolster economic resilience by diversifying reserves through domestic gold purchases, attracting remittances, and coordinating regional policies. They also supported establishing a peer review mechanism to strengthen macroeconomic surveillance and called for frameworks to implement the EAC Five-Year Development Strategy (2026/27 to 2030/31).
Payments and Cybersecurity Initiatives
The committee assessed progress on the EAC Cross-Border Payment System Masterplan, aimed at reducing transaction costs, improving settlement times, and modernizing payment infrastructure to enhance financial inclusion and intra-regional trade. Implementation has commenced with work plans, priority projects, and resource mobilization underway.
While the regional financial sector remains stable with adequate capital and liquidity, cybersecurity was identified as an emerging risk. Governors agreed on intensifying regional cooperation and adopting measures to mitigate these threats.
The meeting concluded with appreciation to the Bank of Uganda for hosting and a renewed commitment to advancing regional monetary integration and fulfilling the EAMU roadmap.
