Saturday, November 30, 2013

EAC Secretariat to work on regional market for major financial services


Deputy General Secretary of the EAC (in-charge of Planning and Infrastructure)Dr Enos Bukuku.
The East African Community (EAC) is working towards creating a single regional market for financial services through a project that will harmonize and merge insurance, pension services and capital markets.

The project is financed by the World Bank (WB) to the tune of $23million.

Deputy General Secretary of the EAC (in-charge of Planning and Infrastructure) Dr Enos Bukuku revealed this in Kampala, when explaining on the draft of the East African Monetary Union Protocol., to be signed by the five Heads of State.

He said the project would include harmonization of settlement system, whereby the five central banks in the region would be connected to ICT systems that are inter-linked.

Dr Bukuku said the move would help minimize time and cost used in settlements in the region. He said EAC had learnt from West African colleagues whose system can transact settlement in ten minutes.

He noted that they are working on creating Single Regional Switch which would enable east Africans to draw money using their ATMs at any bank outlet in the region.
“It is important to have this Single Financial Market before creation of regional Single Currency and regional Single Bank,” he said.

He however revealed that starting next year under the EAMU, East African Monetary Institute (EAMI), East African Statistical Bureau (EASB), East African Surveillance Compliance and Enforcement Commission (EASCEC) and East African Finance Services Authority (EAFSA, would be established.

He further pointed out that the establishment of EAMI would do preparatory work for the formulation of an East African Central bank (EACB).

“Other institutions will remain there…” he said, citing EASB as the regional instrument mandated to control inflation across the five Partner States.
“EASB is going to be a yardstick to measure inflation in the region.”

On the EASCEC, Bukuku said the institution would be used to make Partner States comply to what is agreed at the regional level.
SOURCE: THE GUARDIAN

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