A joint meeting of the EAC Monetary Affairs Committee (MAC), Fiscal Affairs Committee (FAC) and Capital Markets, Insurance and Pensions Committee (CMIPC) to consider the final report on the establishment of a Monetary Union among the EAC Partner States is taking place from 26 February to 2 March 2010 at the Snowcrest Hotel in Arusha, Tanzania.
The joint meeting will involve technical officials session from 26-28 February; the session for Permanent Secretaries of Ministries of Finance, Governors of Central Banks, Heads of Capital Markets/Insurance/Pension Institutions, Commissioners’ General of Revenue Authorities on 1 March; while the Ministers of Finance session is on 2 March 2010. Officials from the Ministries of EAC Affairs in the Partner States are also to attend the meeting.
The joint meeting will also consider the proposed road map to the establishment of the East African Monetary Union (EAMU); a proposal to establish a High Level Task Force (HLTF) for the Negotiations of the EAMU Protocol; and a proposal to establish an EAC Sectoral Council of Ministers responsible for Finance.
Background
At their Summit in 2007, the Heads of State of the EAC Partner States decided to fast track the achievement of Monetary Union by 2012. Following the recommendations from the Governors of the Central Banks, the Council directed the Secretariat to source for a consultant to undertake a comprehensive study on the EAC Monetary Union.
After an internationally competitive bidding process, the consultancy was awarded to European Central Bank (ECB). ECB carried out the study and submitted the report to the Secretariat late last. The study addresses four main issues namely; prerequisites for EAMU; the establishment of the legal and institutional framework necessary for the implementation of EAMU; preparatory work for the transition to EAMU, including measures to replace the national currencies with the future single currency; and the operational regulatory framework for EAMU.
A validation workshop of the Draft Final Report of the proposed East African Monetary Union (EAMU) was held in January 2010 in Kampala and it recommended that the EAC Secretariat convene a joint session for the Monetary Affairs Committee (MAC), Fiscal Affairs Committee (FAC) and the Capital Markets, Insurance and Pension Committee (CMIPC) to discuss the next steps in the establishment of the proposed East African Monetary Union.
Following the establishment of the EAC Customs Union in 2005, and the completion of the negotiations of the establishment of the East African Common Market which is to come into effect on 1 July 2010, the next major stage in the East African integration process is the Monetary Union.
For further information please contact:
Richard Owora Othieno
Ag. Head of Department
Corporate Communications and Public Affairs
Phone: +256 718 358664 / +255 784 835021
Source: East African Community (EAC)
