East African central bankers push single-currency launch to 2031

What the report says

The Observer reports that East African central bank governors have reaffirmed a plan to introduce a single East African currency by 2031, while conceding that no partner state has fully satisfied the macroeconomic convergence requirements needed for the project. The position was discussed at the 29th Ordinary Meeting of the East African Community Monetary Affairs Committee in Kampala, where Bank of Uganda Governor Michael Atingi-Ego said the region remained committed but was falling short on targets such as inflation and reserves.

The single-currency project stems from the East African Monetary Union Protocol signed in November 2013, which originally envisaged a common currency within 10 years. That deadline has slipped as member economies struggle to align inflation, debt and foreign reserve levels with agreed thresholds. According to the report, the governors credited central banks with progress in harmonising policy frameworks, improving data and risk systems, coordinating research and expanding the East African Payment System for cross-border trade.

Atingi-Ego called for stronger peer review, binding national action plans and closer regional surveillance to restore momentum. Figures cited at the meeting indicated the EAC economy grew by an estimated 5.3% in 2025, with projections of 5.4% in 2026 and 5.6% in 2027, while regional inflation reportedly eased to 6.7% in 2025/26 from 9.6% a year earlier. The committee also flagged global risks from oil prices, shipping costs and Middle East tensions.

The report adds that governors endorsed efforts to build reserve buffers through domestic gold purchase programmes and diaspora remittances, and discussed regulation of artificial intelligence, digital finance, cross-border payment integration and cybersecurity. The issue matters because a shared currency would deepen regional integration, but only if economies first meet credible common standards.