Dar ratifies protocol on Monetary Union

Tanzania’s parliament. Photo/FILE 

By ADAM IHUCHA, Special Correspondent

In Summary

• The passing of the protocol means that Tanzania has formally committed itself to implementing the regime, the third stage of regional integration, after the Customs Union and the Common Market Protocols.
• The protocol will now be submitted to the EAC Secretariat in Arusha to fulfil the requirements.

Tanzania is the first country in the region to ratify the East African Community Monetary Union Protocol, after its parliament passed it unanimously.

 

The passing of the protocol means that Tanzania has formally committed itself to implementing the regime, the third stage of regional integration, after the Customs Union and the Common Market Protocols.

Deputy Minister for EAC Co-operation Abdallah Sadallah, who secured the parliamentary endorsement on Wednesday last week, said that the integration was “irresistible.”

“Apart from endorsing the EAC Monetary Union Protocol, members of parliament also spoke positively about the integration process,” Dr Sadallah told The EastAfrican.

He added that the protocol will now be submitted to the EAC Secretariat in Arusha to fulfil the requirements. Rwanda had announced it would pass the protocol before the end of June.

Uganda, Burundi and Kenya have said they are in the process of ratifying it, but they have not given specific dates.

READ: IMF boss cautions East Africa on monetary union

Uganda’s Minister for EAC Affairs Shem Bageine had told The EastAfrican in an earlier interview that his country had initiated the process to ratify the protocol, but since the regime needs a constitutional amendment, it would be considered by a number of state organs.

“This particular ratification calls for a constitutional amendment as it will require the central bank to cede its powers to the proposed EA Central Bank; that’s why it’s taking time,” said Mr Bageine.

Burundi’s Minister for EAC Affairs Léontine Nzeyimana was not specific about the exact dates of implementation.

“Burundi is in the process of ratifying the Monetary Union Protocol. We will beat the July deadline, that’s what I can tell you,” Ms Nzeyimana said.

The EAMU Protocol is a milestone outlining a 10-year roadmap towards a single currency by the year 2024. Consequently, partner states are expected to conclude the ratification process by July 2014.