By PSCU
East African Community leaders on Saturday
signed the Monetary Union Protocol which is intended to result in a
single currency in 10 years’ time.
The signing ceremony held at Speke Resort Munyonyo
in Uganda was witnessed by Members of the East Africa Legislative
Assembly, diplomats and high ranking government officials of member
states.
President Uhuru Kenyatta was earlier installed as
chairman of the EAC, a major regional role that will see him become the
focal point in discussing East Africa’s response to serious challenges
ranging from hunger to terrorism.
President Kenyatta joined host President Yoweri
Museveni, Rwandan President Paul Kagame, Tanzanian President Jakaya
Kikwete and Burundi President Pierre Nkurunziza first at a resort on the
shores of Lake Victoria for formal EAC talks.
President Kenyatta had also held separate
one-on-one bilateral talks with President Kikwete, where the region’s
infrastructure drive as a pillar of economic growth was discussed.
The protocol will provide for a wide scope of co-operation in monetary and financial sectors among EAC members.
Under the protocol, EAC states are expected to
surrender monetary and exchange rates policies to one authority leading
to a single currency regime within the region.
Regional central bank
The protocol will be implemented over a ten year
period, subsequently leading to creation of a regional central bank
whose mandate is to stabilise financial prices as well as monitoring,
surveillance and enforcing compliance of all other macro finance
matters.
President Kenyatta told the launch the monetary
union will accelerate trade growth within the region. He said the union
will eliminate the costs attendant to juggling different currencies
thereby reducing transaction costs.
“Businesses will find more freedom to trade and
invest more widely, and foreign investors will find additional,
irresistible reasons to pitch tent in our region. Such advantages will
no doubt result in increased investment and further transformation of
East Africa,” said President Kenyatta.
President Kenyatta urged member states to eliminate all the remaining barriers to free movement of people, goods and services.
“Barriers to trade in particular assail the spirit
of the Common Market, Customs Union and the Monetary Union,” said
President Kenyatta, calling for the removal of all obstructions to the
growth of the community, stressing the need to allow free movement of
people, businesses and capital within the community to provide
opportunities for generating prosperity.
He also called on investors and other
businesspersons to enhance their participation and commitment to
empowering economic growth in the community.
“Businesses and traders in the small and
micro-enterprises sector need to be enabled to trade in the regional
arena. I commend the work done in this regard, especially through
regional exhibition,” President Kenyatta said.
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