The East African Community (EAC) may not attain the single currency as per the agreed timeframe of 2024.
This publication has established that a technical working group of the ministries of Finance of the EAC partner states have mooted a proposal to extend the attainment of a single currency to 2031.
The EAC secretary general, Dr Peter Mathuki, confirmed the developments last week, saying the proposal is currently before the EAC Council of Ministers.
“I can confirm that the technical working group has completed their report, which has also been submitted to the council of ministers of EAC, ” he said during an event to mark 23 years of the EAC.
Dr Mathuki also said the council is reviewing the report to establish an East African Monetary Institute which will act as a roadmap towards a common currency.
He said the council is expected to meet this month to consider the proposals.
Timeframe still far
However, Dr Mathuki expressed concern that extending the timeframe from 2024 to 2031 is way too far.
“I am not very sure if you will be patient as well to wait until 2031 to get the EAC currency, we are looking at sooner than later to have it,” he said.
The assessment conducted by the EAC secretariat in Arusha indicates that the customs union and common market protocols are not yet fully implemented.
Failure to implement the two protocols has resulted in failure to attain the third pillar, a monetary union, whose main manifestation is a common currency.