EAC Central Bankers Reaffirm 2031 Single Currency Goal, Urge Unified Pace Amidst Economic Resilience

Kampala, Uganda – The East African Community (EAC) is intensifying its drive towards a unified monetary future, with the region’s central bank governors reaffirming their commitment to establishing a single currency by 2031. Meeting in Kampala on July 24, 2026, the EAC Monetary Affairs Committee (MAC) underscored the importance of accelerating the East African Monetary Union (EAMU) roadmap, even as it highlighted uneven progress among member states. The committee’s resolve comes against a backdrop of impressive regional economic resilience, offering a strong foundation but also emphasizing the urgency for harmonized efforts to achieve the ambitious integration goal.

Regional Economy Shows Resilience Amidst Global Volatility

Despite a volatile global economic landscape marked by elevated energy prices, increased shipping costs, and persistent geopolitical tensions, the East African region continues to defy headwinds. The MAC noted robust economic growth, projected at 5.2 percent for 2026, significantly outpacing the Sub-Saharan Africa average of 4.3 percent. This positive trend is complemented by easing inflationary pressures, with average headline inflation across the EAC declining to 6.7 percent in Fiscal Year 2025/2026, a notable improvement from 9.6 percent in the previous fiscal year. Regional currencies are also expected to maintain broad stability, bolstered by diversified foreign exchange inflows and ongoing reforms designed to deepen domestic foreign exchange markets.

Progress on the Path to EAMU: Modernization and Coordination

Under the chairmanship of Dr. Michael Atingi-Ego, Governor of the Bank of Uganda and current MAC Chairperson, the committee reviewed the progress of the revised EAMU roadmap. Members acknowledged encouraging strides made by Partner States in modernizing monetary policy frameworks, strengthening macroeconomic surveillance, and enhancing regional policy coordination. Furthermore, efforts to promote the use of the East African Payment System (EAPS) and build institutional capacity across central banks were recognized as key steps forward.

The Challenge of Uneven Convergence

While acknowledging these achievements, the MAC did not shy away from addressing a critical hurdle: the “uneven progress” made by Partner States towards meeting the agreed macroeconomic convergence criteria. This disparity could pose a significant challenge to the 2031 target. In response, the committee called for a renewed push to strengthen macroeconomic stability, reinforce peer review mechanisms, and accelerate the implementation of agreed convergence programmes. Crucially, members also emphasized the need to support critical infrastructure investments and build collective resilience against evolving global economic challenges.

Leadership Voices on Commitment and Strategy

Dr. Michael Atingi-Ego reiterated the unwavering commitment to the EAMU agenda. “The East African Monetary Union remains a strategic objective that demands sustained commitment, policy harmonisation and strong regional institutions,” he stated. “While our commitment… 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.”

Echoing this sentiment, Ms. Annette Ssemuwemba, EAC Deputy Secretary General for Customs, Trade and Monetary Affairs, highlighted the MAC’s pivotal role. “The Monetary Affairs Committee plays a pivotal role in steering one of the EAC’s most important integration pillars,” she explained, pointing to the 7th EAC Development Strategy’s emphasis on accelerating the EAMU through legal and technical processes and macroeconomic convergence support. Ms. Ssemuwemba stressed the necessity of “partnership, consensus and shared responsibility” to strengthen institutions and deepen regional integration.

Broader Integration and Financial Stability Efforts

Beyond the monetary union, the MAC also focused on enhancing broader financial integration. The committee agreed to operationalize the EAC 7th Development Strategy (2026/27–2030/31) and accelerate the EAMU roadmap through enhanced peer review. Progress on the EAC Cross-Border Payment System Masterplan was welcomed, with implementation activities already underway. This Masterplan aims to facilitate seamless cross-border payments, reduce transaction costs, improve interoperability, promote financial inclusion, and significantly boost intra-EAC trade.

The region’s financial sector was reported as stable and resilient, underpinned by robust capital and liquidity buffers. However, recognizing the growing digital threat landscape, members underscored the importance of strengthening regional cooperation to address emerging cybersecurity risks that could affect financial stability. Collaborative measures will be enhanced to safeguard the region’s vital financial systems.

Conclusion: A Unified Vision Requires Unified Action

The 29th Ordinary Meeting of the EAC Monetary Affairs Committee in Kampala solidified the region’s commitment to a single currency by 2031, a testament to its long-term vision for economic prosperity and integration. While the East African economy demonstrates remarkable strength, the path to monetary union requires a concerted, unified effort from all Partner States to overcome existing disparities in macroeconomic convergence. The call for intensified collaboration, robust peer review, and strategic investment underscores the pragmatic determination of EAC central bankers to transform an ambitious vision into a tangible reality for the benefit of all East Africans.