EAC closer to a single monetary policy regime
Negotiations for the establishment of a single monetary policy mechanism in the common market for East Africa Community (EAC) will begin next month, with the establishment of a committee of central bank governors to act as the community’s monetary authority.
A report compiled by the EAC secretariat says the committee will manage the region’s Monetary Institute and the transition to a monetary union.
The committee is also expected to formulate and implement the regional bloc’s monetary policy, co-ordinate the foreign exchange rate regime, ensure smooth operation of the payments systems while maintaining financial stability.
Negotiations on the establishment of a common market, a crucial stage for the realisation of the goal of political integration, should be finalised by the end of next year, according to the EAC secretariat.
The negotiations will cover co-operation in trade and investment, technology and free movement of persons, goods and services. EAC secretariat estimates that the negotiations alone will cost $2.7 million. The Common Market Protocol is scheduled for ratification in June, 2009 ahead of the official launch of the market in January 2010.
When fully functional, the EAC Common Market will boast of a combined population of 100 million people. The study by M.A Consulting Group, was commissioned to examine the prospects of establishing an EAC Common Market. The report urges EAC member states to set up a common transport system for a speedy integration of the region.
The study says transport is key to success of the common market since it will facilitate the movement of goods, people and services.
The study proposes the creation of a Transport Authority to regulate transport between Kenya, Tanzania, Uganda, Rwanda and Burundi. The authority shall co-ordinate transport policies, manage transport corridors and ensure the effective implementation of common transport policy.
According to the report, the Authority will source and access funding to finance the development and administration of efficient transport systems.
“A functional Common Market requires a robust and efficient transport mode.
The existing dilapidated road and rail transport systems will need to be addressed urgently if the full benefits of a common market have to be realized. The region is also endowed with lakes and rivers and yet the inland waterways have yet to be fully exploited” said the report.
Source: Business Daily Africa
October 2007
A report compiled by the EAC secretariat says the committee will manage the region’s Monetary Institute and the transition to a monetary union.
The committee is also expected to formulate and implement the regional bloc’s monetary policy, co-ordinate the foreign exchange rate regime, ensure smooth operation of the payments systems while maintaining financial stability.
Negotiations on the establishment of a common market, a crucial stage for the realisation of the goal of political integration, should be finalised by the end of next year, according to the EAC secretariat.
The negotiations will cover co-operation in trade and investment, technology and free movement of persons, goods and services. EAC secretariat estimates that the negotiations alone will cost $2.7 million. The Common Market Protocol is scheduled for ratification in June, 2009 ahead of the official launch of the market in January 2010.
When fully functional, the EAC Common Market will boast of a combined population of 100 million people. The study by M.A Consulting Group, was commissioned to examine the prospects of establishing an EAC Common Market. The report urges EAC member states to set up a common transport system for a speedy integration of the region.
The study says transport is key to success of the common market since it will facilitate the movement of goods, people and services.
The study proposes the creation of a Transport Authority to regulate transport between Kenya, Tanzania, Uganda, Rwanda and Burundi. The authority shall co-ordinate transport policies, manage transport corridors and ensure the effective implementation of common transport policy.
According to the report, the Authority will source and access funding to finance the development and administration of efficient transport systems.
“A functional Common Market requires a robust and efficient transport mode.
The existing dilapidated road and rail transport systems will need to be addressed urgently if the full benefits of a common market have to be realized. The region is also endowed with lakes and rivers and yet the inland waterways have yet to be fully exploited” said the report.
Source: Business Daily Africa
October 2007