East Africa's countdown to a single currency in 2031
Finance officials and central bankers are working on budget discipline, tax harmonisation and reconnected capital markets. No member yet meets all four entry tests.
Arusha — The East African Community wants a single currency in 2031, and with about five years left its officials have stepped up the groundwork, the EAC said.
Getting the finances in line
From 21 to 25 September in Arusha, the EAC's fiscal affairs committee and its monetary affairs committee met jointly, bringing finance ministries and central banks to the same table. The chair, Dr Albert Musisi of Uganda's finance ministry, urged faster progress: "We therefore need to increase momentum," he said.
On the agenda:
- Public finances: better forecasting, cash management and spending controls to stop arrears building up
- Tax: harmonising excise duties product by product where countries agree, aligning VAT, and finishing a regional double taxation agreement to give businesses more certainty
- Central bank lending to governments: national timetables to phase out overdraft facilities
- A framework for coordinating monetary and fiscal policy, and a peer review mechanism
Member states will also be able to pay their EAC contributions in local currencies, under a new formula in force since 1 July 2026: half equal shares, half based on each country's average GDP per head over five years.
The entry tests
At a July meeting, no member state met all four main convergence criteria: inflation of no more than 8%, reserves covering at least 4.5 months of imports, a budget deficit including grants of no more than 3% of GDP, and public debt of no more than 50% of GDP in present value terms.
Capital markets reconnect
Separately, the EAC's capital markets sub-committee, bringing together stock exchanges, regulators and securities depositories, met from 15 to 17 September for the first time since 2019. It updated its terms of reference to reflect the EAC's larger membership and began work on a framework to connect the region's markets so investors can trade across borders. "Today's meeting represents an important step towards restoring that collaboration," said Dickson Ssembuya of Uganda's Capital Markets Authority.
Sources: East African Community, 25 September 2026; East African Community, 21 September 2026.
