EAC Countries to Adopt a Common Currency by 2031
The East African Community aims to introduce a common currency by 2031, contingent on successful fiscal and monetary policy harmonization. East African Affairs Minister Rebecca Kadaga highlighted ongoing progress while noting delays in political integration.
The East African Community (EAC) member states could adopt a common currency as early as 2031, provided that all plans proceed as scheduled.
According to the Minister for East African Affairs, Hon. Rebecca Kadaga, this projection is based on the progress made in harmonizing fiscal and monetary policies under the East African Monetary Union (EAMU). She further stated that a framework for monitoring the EAMU roadmap has been developed, facilitating bi-annual progress updates, risk identification, and mitigation strategies.
However, Hon. Kadaga noted that progress on the political confederation aspect has been relatively slow. She revealed that stakeholder consultations have so far been completed in only three partner states—Burundi, Uganda, and Kenya. She emphasized that these delays hinder political unity, trust, and the broader goal of regional integration.
Hon. Kadaga made these remarks on January 28, 2025, during the launch of her campaign aimed at integrating Uganda’s higher education system into the East African Community education framework. The event was held at Kampala International University.
The East African Community (EAC)
The EAC is a regional intergovernmental organization comprising eight partner states: Uganda, Burundi, the Democratic Republic of Congo, Kenya, Rwanda, Somalia, South Sudan, and Tanzania.
The work of the EAC is guided by the Treaty for East African Cooperation, which established the community. The treaty was signed on November 30, 1999, and came into effect on July 7, 2000, following ratification by the three founding members: Kenya, Tanzania, and Uganda.
Subsequently, Rwanda and Burundi joined the EAC on July 1, 2007, after acceding to the treaty on June 18, 2007. South Sudan became a full member on August 15, 2016, after acceding on April 15, 2016. The Democratic Republic of Congo acceded to the treaty on April 8, 2022, and became a full member on July 11, 2022. Most recently, Somalia acceded to the EAC Treaty on December 15, 2023, and officially became a full member on March 4, 2024.
As outlined in the EAC Treaty, regional integration across economic, social, and political sectors is fundamental to enhancing the quality of life for the people of East Africa. This is to be achieved through increased competitiveness, value addition in production, and the expansion of trade and investment opportunities.
