East African Community Monetary Union signed

By Gashegu Muramira

President Kagame with his counterparts: Yoweri Museveni, Uhuru Kenyatta, Jakaya Kikwete and Jean-Pierre Nkurunziza sign the East African Community Monetary Union protocol scheduled to be implemented in July 2014. Sunday Times/Village Urugwiro

 

 

A protocol establishing a monetary union for the East African Community has been signed by the five heads of state of the bloc during their summit meeting in Kampala, Uganda.
Yesterday’s signing was accompanied by a strong call for total elimination of non-tariff trade barriers by implementing previous protocols.


This is the third protocol, after the Customs Union and Common Market protocols, to be endorsed by the Summit as the region moves closer to full integration. The EAC envisages full integration after signing the last protocol establishing a political federation.


The presidents, meeting during the 15th ordinary summit of the EAC Heads of State, described the signing of the monetary union as a “logical culmination of integration efforts.

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“We now have the framework required to unlock the promise of integration,” said Kenya’s President Uhuru Kenyatta, who took over EAC chairmanship from Uganda’s Yoweri Museveni.


Kenyatta, who spoke on behalf of his counterparts, took a swipe at the continued presence of trade barriers—saying that the logic of integration doesn’t admit maintenance of high costs of doing business.


“In other words we have a duty as a community to give life to the instruments we establish by rigorously and conscientiously abiding by their provisions,” he said.


“It is time to liberate our people,businesses and capital and allow them to deliver prosperity. That is the true promise of integration” Kenyatta added.


For integration in the region to work as intended, Kenyatta said, there is need to rebuild the region’s outdated railway network which he said will in turn increase its competitiveness.


President Museveni underscored the importance of a politically united East Africa, saying that if a federation was in place, the region wouldn’t have witnessed the 1994 Genocide against the Tutsi in Rwanda and the 2007 post-election violence in Kenya

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Museveni pointed to customs union launched in Kigali a month ago as an example of political commitment that will benefit the people of East Africa. The customs union has allowed the time a container takes from Mombasa to Kampala to be reduced from 18 to 3 days; and from 24 to 4 days from Mombasa to Kigali.


EAC Secretary General Dr Richard Sezibera thanked the leaders for their support and expressed the Secretariat continuous commitment to a prosperous East African Community.
Sezibera also informed the meeting that the Heads of State had agreed to consider setting up a Peace and Security Council.


President Kenyatta concluded by putting rumors of division with East African Community member states: “We speak with one voice and walk together towards our destination of a better East Africa for all.”