And whereas provision was made by the east africa high. In late 20 the east african community eac countries burundi, kenya, rwanda, tanzania, and uganda. According to article 5 of the treaty establishing the eac, the integration is anchored on four major pillars. Establishment of the east african community common market 1. The eac common market ministry of east african community. Protocol on the establishment of the east african community.
Eac monetary union negotiations began in january 2011 and are expected to conclude in 2012. The east african monetary union ministry of east african. Paul kagame, the president of rwanda, is the eacs chairman. Protocol on the establishment of the east african customs union 1 files 186 downloads. Design and implementation of a common currency area in the. The east african community eac was originally founded in 1967 by kenya, tanzania and uganda. The east african community eac is a regional inter governmental organization established under article 2 of the treaty for the establishment of the east african community that entered into force in july 2000. The eac journey to a monetary union began with the establishment of the east african monetary union in 2015, which provided a roadmap to achieve a single currency region within 10 years by 2024. The partner states have agreed to cooperate in simplifying, standardising and harmonising trade information and documentation so as to facilitate trade in goods. The eamu protocol was signed on 30th november, 20 and set the groundwork for a monetary union within 10 years while allowing the eac partner states to progressively converge their currencies into a single currency in the community.
When the east african community eac was revived in 1999, more than million citizens of the region expected it to fully tap into the benefits of a rejuvenated economic and political bloc. East african community eac close afrika mashariki road p. With a view to liberalise trade within the region, the. Eac monetary union protocol cooperation east african community. On behalf of the african union heads of state and government, it is my pleasure to introduce the 2019 edition of the. An assessment of the trade effects of the east african. The community has developed antidumping regulations, as elaborately highlighted in the eac customs union protocol. Protocol on the establishment of the african monetary fund. The east african monetary union protocol was adopted in accordance with the eac treaty and signed on 30th november 20. On november 30, 20, the heads of the east african community eac member states signed the monetary union eamu protocol in kampala. Comesa is also work ing toward a monetary union by 2025, but prog.
African economic and monetary union including setting up of african monetary union, a single african central bank and a single african currency. The leaders of five east african countries signed a protocol on saturday laying the groundwork for a monetary union within 10 years that they expect will expand regional trade. The past year has seen significant progress toward. On november 30, 20, the heads of state of the east african community signed the monetary union protocol in kampala. In september 2018 a committee was formed to begin the process of drafting a regional constitution, and a draft constitution for a. The eac started negotiating a protocol to establish the east african monetary union eamu in january 2011. It has since been ratified by all the partner states. The road to monetary union in east africa share this blog post on 30 november, the heads of state of the partner states of the east african community burundi, kenya, rwanda, tanzania and uganda met in kampala to approve the protocol for the establishment of an east african monetary union. It follows ratification of the protocols for a customs union 2005 and. Price stability is the primary objective of monetary policies in all eac wto members. Job opportunity at east african community eac programme. The east african community eac has fasttracked its plans to create a single currency for the five countries making up the region, and hopes to conclude negotiations on a monetary union protocol by the end of 2012. The treaty for the establishment of the east african community 1 files 327 downloads. The customs union was formally completed in 2010, and common market protocol was signed in 2009.
The east african monetary union is the third stage in the eac integration process. Full political con federation 20 wako committee, 2004. The organisation was founded in 1967, collapsed in 1977, and was revived on 7 july 2000. Monetary union is the third of the four pillars in the eacs ambition towards regional confederation.
In november 20, the partner states of the east african community eac endorsed the protocol on the establishment of the east african community monetary union the protocol committing them to full monetary union by 2024. The first respondent is the central bank of kenya, and the second respondent is the attorney general of the republic of kenya. Pdf the east african community eac has fasttracked its plans to create a single currency. It came into force in 2015 upon being ratified by eac partner states monetary union cont.
Protocol on the establishment of the east african monetary union. The protocol on the establishment of the eac customs union the customs union protocol was signed by the 3 east african heads of state on 2nd march 2004 and came into effect on 1st january 2005. Protocol on the establishment of the east african monetary union 1 files 5 downloads. Definitions in this protocol, unless otherwise specifically stated. On 1 july 2010, kenyan president mwai kibaki launched the east african common market protocol, an expansion of the blocs existing customs union that entered into effect in 2005. The east african monetary union protocol provides for the attainment of a single. Free movement of capital and economic and monetary. It is the strategic framework for delivering on africas goal for inclusive and sustainable development and is a concrete manifestation of the panafrican drive for unity, selfdetermination, freedom, progress and collective prosperity pursued under panafricanism and african. View enhanced pdf access article on wiley online library. Treaty for the establishment of the east african community, as amended 2008 pdf, 539 kb. Making the most of the common market on the road to a monetary union is being jointly organized by the east african community eac secretariat, the european union eu delegation in tanzania, and the african department of the international monetary fund imf.
Burundi, kenya, rwanda, south sudan, tanzania, and uganda. If the inline pdf is not rendering correctly, you can download. Nov 30, 20 the leaders of five east african countries signed a protocol on saturday laying the groundwork for a monetary union within 10 years that they expect will expand regional trade. East african community regional pharmaceutical manufacturing plan of action 20122016 poverty impact assessment of the east african community regional pharmaceutical plan of action eac regional intellectual property policy on the utilisation of public healthrelated wtotrips flexibilities and the approximation of national intellectual. The east african customs union was successfully launched in 2005, followed by the establishment of the common market in 2010 and implementation of the east african monetary union protocol in 2012.
November 2009 and ratification in july 2010 of the common market protocol by all the partner states. The east african monetary union eamu is the third milestone of the eac integration process. Eac achievements ministry of east africa community and. This is in line with articles 52, 82 and 151 of the treaty for the establishment of the east african community, whose goal is the eventual establishment of a political federation. As the eac integration deepens, it is a pertinent question fo r policy makers to ask what effect, if any, this has had. Firmly convinced that the attainment of the objectives of the african union requires the establishment of the african monetary fund, have agreed as follows. Pdf if the inline pdf is not rendering correctly, you can download the pdf file here. East african community ministry of external affairs. Protocol on the establishment of the east african customs. Collection centre 1900, the east african currency board 1905, the postal union 1905, the court of appeal for eastern africa 1909, the customs union 1919, the east african governors conference 1926, the east african income tax board 1940 and the joint economic council 1940. Towards a common currency in the east african community.
Ongoing reform efforts by eac countries aim at establishing a monetary union by 2024. Eac peace and security protocol eac customs union protocol eac common market protocol eac monetary union protocol. The heads of state of the east african community signed a protocol on the establishment of the east african community monetary union on 30th november 20. The east african community common market and possible monetary union customs union and cet 2005 full implementation 2010 single market 2010 full implementation 2015 protocol for monetary union 20 implementation by 2024. It is thought that a monetary union, with the absence of currency risk, provides a greater incentive for trade. In order to promote the objectives of the community provided for under article 5 of the treaty and in accordance with the provisions of this protocol, the partner states hereby establish a common market as an integral part of the community. Protocols ministry of east african community affairs.
The east african community eac is an intergovernmental organisation composed of six countries in the african great lakes region in eastern africa. While the abuja treaty continues to set the overall framework and ambition for african integration, the au assembly of heads of state and government decreed, in 2012, the decision to boost intra african. Such a union would call for the creation of a new unified currency, similar to the euro. East african trade bloc approves monetary union deal reuters. Free movement of capital and east african monetary union. The monetary union eamu protocol is the third pillar of eac integration. African common market and monetary union, and the negotiations towards east african federation all underscore the serious determination of the east african leadership and citizens to construct a. African union handbook, which is an invaluable resource for those who work both with and within the african union. Indeed, in 20, they adopted the east african monetary union protocol eamu protocol, on top of the macroeconomic convergence framework in place since 2007.
Towards a common currency in the eastern african community. Pdf a common currency for the east african community. However, several regional monetary union projects are planned such as ecowas, comesa, sadc and eac and a common currency for africa is a longterm goal of the african union. Currently the intention is to sign the east african monetary union protocol 2012, while the date for actual implementation of the common currency is uncertain. The eac member states signed the protocol on the establishment of the east african community monetary. Eac discusses harmonization of fiscal, budgetary frameworks the east african community needs to build its capacity to produce robust statistics as well as create a credible surveillance and enforcement mechanism to underpin its transition to a monetary union, a workshop on harmonizing fiscal and budgetary frameworks today heard in arusha. Progress in regional integration in east africa varies widely across these three recs. Eac anthem ministry of east african community affairs. The consultations on the monetary union, which commenced in 2009, and fast. A memorandum of understanding for currency convertibility has since been signed, and fiscal, monetary. Eacs journey to monetary union still on right speed. The protocol sets a framework for adoption of a single regional currency and establishment of an independent east african central bank, whose mandate is to. To achieve these objectives, the key building blocks are the customs union, common market, monetary union and ultimately the political federation. The common market represents the second pillar of the eac regional integration process as defined by the treaty for the establishment of the east african community, following the customs union, which became fullfledged in january 2010.
Agenda 2063 is the blueprint and master plan for transforming africa into the global powerhouse of the future. The negotiations for the east african monetary union, which commenced in 2011, and fast tracking the process towards east african federation all underscore the serious determination of the east african leadership and citizens to construct a powerful and sustainable east african economic and political bloc. The eac is approaching the highest stage, having ratified the protocol for a monetary union, but igad is farther behind. The major benefits of a monetary union are the reduction in transaction costs, economies of international reserves, the elimination of exchange rate risk and regionwide. The east african monetary union eamu protocol was signed on 30 th november 20.
Currently the intention is to sign the east african monetary union protocol 2012, while the date. The uganda government ministry of east african community affairs mandate is to steer ugandas regional integration agenda in accordance with the objectives of the treaty for the establishment of the east african community. Burundi has joined rwanda and tanzania in ratifying the east african community monetary union protocol. Countries are expected to attain headline inflation of a maximum eight per cent, a fiscal deficit including grants of not more than three per cent of gdp, a public debttogdp ratio of 50 per cent and forex reserves of at least 4. The east african community eac has failed to meet its 2012 target of agreeing on the formation of a monetary union. In late 20 the east african community eac countries burundi, kenya, rwanda, tanzania, and uganda signed a joint protocol setting out the process and convergence criteria for an eac monetary union. East africa economic outlook 2019 african development bank.
After almost two years of negotiations, the five east african community countries appeared to be reaching agreement on how an east african monetary union will be formed and it was expected that a protocol would be approved at the eac heads of state summit at the end of november. Pdf design and implementation of a common currency area in. The operationalization of the common market started in 2010. The eamu protocol was adopted in accordance with the eac treaty and signed on 30th november 20. Considerations for south sudan joining the east african. The consultations on the monetary union, which commenced in 2009, and fast tracking the process towards east african federation all underscore the serious determination of the east african leadership and citizens to construct a powerful. Understanding the east african community and its transport. The customs union had a fiveyear transitional period, which came to an end on 1st july 2010. The protocol aims to harmonize monetary and fiscal policies and establish a common central bank for the east african community. Introduction analysis of the east african monetary union institute of.
The protocol will lead to the free movement of labour, capital, goods and services within the eac. Toward a monetary union in the east african community. The process of east african community eac integration has continued to gather momentum, following the establishment of the customs union and the common market in 2005 and 2010 respectively, and the next phase is the eac monetary union. The protocol was signed on 30 th november, 20 by all eac partner states. It is the strategic framework for delivering on africa s goal for inclusive and sustainable development and is a concrete manifestation of the pan african drive for unity, selfdetermination, freedom, progress and collective prosperity pursued under panafricanism and african. Towards a common currency in the east african communityeac.
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