East African Community (EAC) central bank governors have reported steady advancements in efforts to establish a single regional currency, maintaining that the bloc remains on track to achieve its 2031 target.

The update emerged after the Monetary Affairs Committee met on July 24 to review the revised roadmap for the East African Monetary Union (EAMU). Governors noted significant progress in modernising and harmonising monetary policy frameworks across member states.

Key achievements include enhanced data collection, improved analytical capacity, and strengthened risk management systems. Additionally, the governors highlighted increased policy coordination through expanded information sharing and joint research initiatives.

Efforts to promote the East African Payment System are underway to facilitate regional trade, alongside investments in developing human capital within central banks.

However, the governors acknowledged that no EAC partner state has yet satisfied all four primary macroeconomic convergence criteria required for the monetary union. Progress remains uneven, with challenges balancing macroeconomic stability and funding for infrastructure projects.

External factors such as global economic volatility and geopolitical conflicts, including those in the Middle East, have further complicated these efforts.

Measures to Enhance Economic Resilience

  • Encouraging partner states to diversify foreign exchange reserves via domestic gold purchases
  • Promoting policies to increase remittance inflows
  • Introducing a peer review mechanism to strengthen macroeconomic surveillance and policy coordination

Furthermore, the governors are developing new operational frameworks to support the implementation of the EAC’s Five-Year Development Strategy for 2026/27 to 2030/31.

Cross-Border Payment System Masterplan

The governors reaffirmed their commitment to the EAC Cross-Border Payment System Masterplan, aimed at modernising and integrating payment systems across member states. This initiative seeks to reduce transaction costs, shorten settlement times, and eliminate fragmentation in cross-border payments. Implementation is progressing through annual work plans and resource mobilisation.