Progress in towards an East African monetary union.
In November 2013, East African Community (EAC) partner states endorsed the East African Monetary Union (EAMU) Protocol, outlining plans for full monetary union by 2024. For the union to happen, at least three partner states must be willing to cede their monetary policy independence. Furthermore, EAC states have agreed to certain convergence criteria that they will need to meet.
Closer economic and political integration will offer benefits to the EAC even without a monetary union.
Domestic taxes will be insufficient to fund projects, forcing increased borrowing to the detriment of convergence criteria.
Worsening political crises in South Sudan and Burundi may erode their regional standing and complicate diplomacy.
Kenya and Tanzania’s current trade dispute with the EU foreshadows larger regional economic clashes ahead.
