Currency exchange at border posts costs East Africans billions

 

By 

Zephania Ubwani

Arusha. East Africans are losing billions of shillings through multiple currency conversions at the borders.

The menace will persist as long as there is no single currency in place for the seven-nation bloc, a regional lawmaker has warned.

“Up to 30 percent of funds are lost through border transactions,” said Rose Akol, a member of the East African Legislative Assembly (Eala) from Uganda

She said this on Thursday as the House debated various committee reports tabled before the 4th Eala whose tenure ended on Saturday (December 18th).

She called on the East African Community (EAC) and the partner states to fast-track the implementation of the Monetary Union protocol.

The legal framework (protocol) signed in 2013 and ratified by the member countries aims to facilitate trade and economic integration.

The protocol’s operationalisation would, among others, pave the way for creation of various EAC institutions to oversee the process.

Key among them is the East African Monetary Institute (EAMI) which will later be transformed into the East African Central Bank (EACB).

Others are the East African Statistical Bureau, the EAC Financial Services Commission and the EAC Surveillance, Compliance and Enforcement Commission.

However, the lawmaker from Uganda said the Monetary Union agenda has largely remained on paper despite being a key pillar in the EAC integration.

“We have passed a number of bills to create these institutions but there is little taking place on the ground,” she pointed out.

She said multiple currency conversions by traders and ordinary travellers across the EAC borders have turned into some form of barriers to trade.

She implored the regional leaders to ensure the Monetary Union protocol processes are fully operationalized as have been the cases with the Customs Union and Common Market Protocol.

Ms Akol and other speakers reiterated their call for financial and administrative autonomy of the regional Parliament in order to enhance efficiency in carrying out its mandate.

Ms Oda Gasinzigwa (Rwanda) said many EAC institutions scattered across the region were facing a host of challenges. These, among others, include scarcity of financial and human resources that would enable them to discharge their duties effectively.

Dr. Woda Jeremiah Odok (South Sudan) lauded the 4th Assembly whose five year tenure has ended for opting for virtual sessions during the height of Covid-19 in 2020/21.

“The Speaker gave us confidence. He took a bold decision to continue with our sessions through video link. And it worked well,” she explained.

She echoed suggestions often made by the legislators to have members of the authoritative Council of Ministers to have permanent residences in Arusha.

“These will enable them to spend more time in Arusha.It will make a great impact on the EAC whose seat is in Arusha,” she pointed out.

The EAC Council of Ministers is made up of the partner states’ ministers holding the EAC Affairs docket, at times extending to sectoral ministries with a bearing on regional projects.

The Council is a key policy and advisory organ of the EAC chiefly responsible for budgetary and bills preparations and only answerable to the Heads of State