The eamu protocol was adopted in accordance with the eac treaty and signed on 30th november 20. Is the proposed east african monetary union an optimal. On behalf of the african union heads of state and government, it is my pleasure to introduce the 2019 edition of the. The east african monetary union eamu is an important stage in the process of east african community eac regional integration. Such a union would call for the creation of a new unified currency, similar to the euro.
The east african community development strategy for the period 201112201516 outlines broad. It is necessary to ensure the existence of adequate pre. Regional integration and monetary unions in africa how. Promoting financial integration in africa a perspective from the east. The east african community is one of the regional economic communities and building blocks of the african union. This paper considers the worrying ethical implications from the formation of an east african community monetary union. The road to monetary union in east africa share this blog post on 30 november, the heads of state of the partner states of the east african community burundi, kenya, rwanda, tanzania and uganda met in kampala to approve the protocol for the establishment of an east african monetary union. The formation of the economic and monetary union emu and the adoption of the euro was clearly a highly significant episode in the evolution of the european union1. The economic community of central african states, which includes 10 countries across the middle of the continent, formed a customs union with a free trade area between.
Protocol on the establishment of the east african customs union pdf, 563 kb. Towards a common currency in the eastern african communityeac. African union handbook, which is an invaluable resource for those who work both with and within the african union. Since the protocol provides for the east african central bank eacb to be independent of the governments, have 1. Eaccu east african community customs union eacj east african court of justice. Firmly convinced that the attainment of the objectives of the african union requires the establishment of the african monetary fund, have agreed as follows. The international survey on revenue administration isora, a joint endeavor between the interamerican center of tax administrations ciat, the international. Currently the intention is to sign the east african monetary union protocol 2012, while the date for actual implementation of the common. West african economic and monetary union eight countries. In late 20 the east african community eac countries burundi, kenya, rwanda, tanzania, and uganda signed a joint protocol setting out the process and convergence criteria for an eac monetary union. The leaders of five east african countries signed a protocol on saturday laying the groundwork for a monetary union within 10 years that they expect will expand regional trade. European union, which has monetary although the east african monetary union eamu has been patterned on the euro monetary union, lessons drawn from the ongoing crisis and also the 2008 world financial crisis will ultimately shape it, he says. Definitions in this protocol, unless otherwise specifically stated.
Overview of education sector east african community. The african human rights system a guide for indigenous. Eac monetary union protocol cooperation east african community. Africa has a long history of some countries sharing single currencies.
The east african monetary union protocol signed in 20 stresses the need for convergence of macroeconomic variables as important preconditions before forming the monetary union. A positive example in this direction is the west african monetary union uemoa, which has more intraregional trade than any other region in africa. Critical role of financial integration in eacs quest towards formation of monetary union the eamu protocol signed in 20lays groundwork for a monetary union. Moving toward a monetary union and forecastbased monetary policy in east africa 201011 the countries of the east african community eac are committed to implementing a monetary union within the next few years. Protocol on the establishment of the east african monetary union. Protocol on the establishment of the east african community monetary union. The west african economic and monetary union, for one, was formed in 1994 and shares the cfa franc among eight west african countries, while namibia, swaziland, and lesotho have been linking their currencies to the south african rand under a common monetary area established in 1986. They include the adoption of article 4 l of the constitutive act of the african union which enshrined the parity principle, the protocol to the african charter on human and peoples rights on the rights of women in africa and the solemn declaration on gender. The eac has a number of established organs that are similar to those of eu, namely the council of ministers, east african. The east african monetary union protocol 2012 is yet to be signed and the date for eamu actual implementation of the common currency is uncertain.
Eac peace and security protocol eac customs union protocol eac common market protocol eac monetary union protocol. This report evaluates how the eac can best move toward this objective, with a focus on fiscal policy considerations. Ethical considerations of an east african community. Under article 11 of the protocol to the au constitutive act, the official languages of the au and. Eac discusses harmonization of fiscal, budgetary frameworks the east african community needs to build its capacity to produce robust statistics as well as create a credible surveillance and enforcement mechanism to underpin its transition to a monetary union, a workshop on harmonizing fiscal and budgetary frameworks today heard in arusha. The eamu protocol also calls for eac partner states to integrate banking, payments and financial systems, which would further reduce the costs of regional trade transactions. Your username will be emailed to the email address on file. The customs union was formally completed in 2010, and common market protocol was signed in 2009. Economic community of west african states wikipedia. East african trade bloc approves monetary union deal reuters. Establishing a monetary institute for the region as an.
Pdf a common currency for the east african community. Research paper for united nations economic commission. East african community affairs the honourable minister provided a brief background on the reestablishment of the eac since 1999 and the progress made to establish the three pillars of integration. Partner states are expected to conclude its ratification by july 2014. It took its place in the aim for an ever closer union, and it could be viewed as a final step along the route of removal of barriers to trade between member. Competitiveness and diversification of services export in. Collectively, these countries comprise an area of 5,114,162 km 2 1,974,589 sq mi, and in 2015 had an estimated population of over 349 million the union was established on 28 may 1975, with the signing of the treaty. Protocol on the establishment of the east african customs.
Richard sezibera, i wish to thank the unisdr for inviting the east african community to this conference. Monetary union protocol called for a monetary union to be established within ten years. The role of the cfa franc in the economic integration of the west. Thomas kigabo ruzuhuzwa, chief economist of the central bank of rwanda. South sudan and the east african monetary union south sudans accession into the east african community signals a strong commitment to regional integration.
The treaty of 1999 to revive the defunct east african community eac ratified by kenya, uganda, and tanzania came into force on july 2000 with the objective of fostering a closer cooperation in political, economic, social, and cultural fields. The eamu protocol was signed on 30th november, 20 and set the groundwork for a monetary union within 10 years while allowing the eac partner states to progressively converge their currencies into a single currency in the community. The east african monetary union eamu is the third milestone of the eac integration process. This protocol delianates the roadmap to a single eac currency by 2024, issued by a common eac central bank. Task force to advance the east african monetary union. Toward a monetary union in the east african community. The african monetary union is the proposed creation of an economic and monetary union for the countries of the african union, administered by the african central bank. The protocol for the establishment of the eamu was signed in november 20 by the eac member states, setting up a 10year roadmap for attaining a single currency regime in 2024. The heads of state of five east african countries signed a memorandum for a monetary union in ugandas capital kampala on saturday. Part ii exclusively covers extensively the gender analysis findings of the customs union protocol, including the opportunities that exist for women cross border. The east african monetary union protocol provides for the attainment of a single. Regional economic communities in africa aim to establish monetary unions as part of their broader integration agenda. Monetary unions and common currency areas are not new to africa.
However, several regional monetary union projects are planned such as ecowas, comesa, sadc and eac and a common currency for africa is a longterm goal of the african union. The eac member states signed the protocol on the establishment of the east african community monetary. The protocol providing the legal basis for the eacs transformation into a monetary and fiscal union was signed in 20. This is in line with articles 52, 82 and 151 of the treaty for the establishment of the east african community, whose goal is the eventual establishment of a political federation. In late 20 the east african community eac countries burundi, kenya, rwanda, tanzania. The five east african community eac countries on november 30th signed a protocol to establish a monetary union, in a first. Years of cooperation stretching back to colonial times have led to this union among nations. A full monetary union involves a single currency and.
Towards a common currency in the east african community. Towards a common currency in the eastern african community. East african community eac close afrika mashariki road p. Issues, challenges and prospects 5 acknowledgements this study was carried out, at the request of the eastern african subregional office of the united nations economic commission for africa, by dr. The role of the cfa franc in the economic integration of. It follows ratification of the protocols for a customs union 2005 and. The economic community of west african states, also known as ecowas, is a regional political and economic union of fifteen countries located in west africa. Southern african customs union fta sacu cotonou agreement between eu and other countries southern africa development community sadc common market for eastern and southern africa comesa east african community eac west african economic and monetary union waemu caricom revision of treaty european community efta romania caribbean. To achieve this, an east africa customs union protocol was signed in march 2004. East african payment system eaps which is a funds transfer mechanism used to transfer money from one bank to another across the border. Currently the intention is to sign the east african monetary union protocol 2012, while the date for actual implementation of the common currency is uncertain.
The latter was signed in 20 and will come into operation. The major benefits of a monetary union are the reduction in transaction costs, economies of international reserves, the elimination of exchange rate risk and regionwide. Chandaria, like sezibera, is stubbornly optimistic, even if the dream of union remains about as. Concluding part i is a glimpse on the impact of the customs union on small scale cross border women traders in the context of the east african community.
Pdf on jan 1, 2018, hansheinrich bass and others published a. The heads of state of the east african community signed a protocol on the establishment of the east african community monetary union on 30th november 20. Establishment of the east african customs union, the protocol on science, technology and innovation. A guide for indigenous peoples braun and mulvagh 1 october 2008 i introduction this guide provides an overview of the african system for the promotion and protection of human and peoples rights, as developed. For example, the west african economic and monetary union uemoa has 8 countries using the cfa franc, previously pegged to the french franc and now to the euro. Task force to advance the east african monetary union the east african community strives to achieve deepened economic integration through an east african monetary union eamu.
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