Central Bank Governors from East African Community member states were briefed on Friday, May 9, 2025, during the 28th Ordinary Meeting of the EAC Monetary Affairs Committee (MAC) held in Mombasa, regarding the progress toward establishing a common regional currency.
Chaired by Dr. Kamau Thugge, Governor of the Central Bank of Kenya, the meeting brought together top officials from the central banks of member states including Burundi, Rwanda, South Sudan, Tanzania, Uganda, Somalia, and the Democratic Republic of Congo (DRC), along with representatives from the EAC Secretariat.
This meeting also marked the first participation of Somalia and the DRC in the MAC since joining the EAC, with governors pledging full support to integrate their central banks into the bloc’s monetary frameworks.
The meeting occurred against a backdrop of heightened uncertainties in the global economic outlook, stemming from increased trade tensions and ongoing geopolitical concerns.
Central Bank Governors from EAC Meet to Discuss Progress of Common Currency
Despite these uncertainties, the Committee observed that economic performance in the EAC region has remained relatively resilient. In 2024, GDP growth varied among Partner States, with some recording robust growth that indicated sustained economic momentum, largely supported by the strong performance of the agriculture sector, as well as the resilience of the services, mining, and oil sectors.
Looking ahead, the governors project a real GDP growth rate of 5.8% in 2025—outpacing both global and Sub-Saharan African averages.
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At the same time, the governors reviewed the implementation of the revised roadmap for the East African Monetary Union (EAMU), which aims to establish a single regional currency by 2031.
The EAC Central Banks noted that significant strides have been made in harmonizing monetary and exchange rate policies, financial sector supervision, IT infrastructure, payment systems governance, and climate risk management frameworks.
“The meeting reviewed progress made in the implementation of the revised roadmap towards realization of the East Africa Monetary Union (EAMU) by 2031 and noted that significant progress has been made in the harmonisation of monetary and exchange rate policies,” read part of a communique from the meeting
“The Governors pledged to continue working with the relevant authorities to expedite implementation of the revised EAMU roadmap.”
The Governors also highlighted that Partner States have made considerable progress in implementing the EAC Macroeconomic Convergence Criteria, pledging to continue collaborating with the relevant authorities to expedite the implementation of the revised EAMU roadmap.
EAC Approves Regional MOU
The Committee also noted improvements in inflation control, with regional inflation declining from 11.2% in 2023 to 9.0% in 2024 due to tighter monetary policies and enhanced food supply. Inflation is expected to ease further in 2025, though climate-related shocks remain a potential risk.
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Furthermore, the Committee approved a regional Memorandum of Understanding (MOU) to enhance information sharing on crisis preparedness and management. Additionally, it adopted the EAC Cross-Border Payment System Masterplan, a key step toward modernizing and integrating payment systems for safer, more efficient, and inclusive cross-border transactions in the region.
Moreover, they confirmed their commitment to speeding up the EAMU plan to ensure that the EAC region stays on track to have a common currency by 2031.
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