Business 11 May 2026 Daily Monitor (Uganda)
EAC Ministers Convene in Arusha to Boost Fiscal Unity and Monetary Union
Finance ministers and economic officials from the East African Community are meeting in Arusha to discuss fiscal coordination, trade policy harmonization, and the roadmap towards a monetary union. The meetings aim to accelerate the implementation of regional commitments and strengthen economic integration. Source: https://www.monitor.co.ug/uganda/news/national/eac-pushes-fiscal-unity-monetary-union-touted-as-finance-ministers-meet-in-arusha-5455636
Officials from the East African Community (EAC) have gathered in Arusha, Tanzania, for crucial meetings focused on deepening regional economic integration. The 18th Meeting of the Sectoral Council on Finance and Economic Affairs (SCFEA) and the 21st Meeting of the EAC Pre-Budget Consultations are taking place from May 11-15, 2026.
The primary focus is on advancing fiscal unity and paving the way for an East African Monetary Union (EAMU). This includes harmonizing national budget frameworks for the 2026/27 fiscal year and aligning national budget themes under a common EAC regional objective. Such alignment is seen as critical for meeting the convergence criteria necessary for a single currency.
Discussions also encompass trade policy harmonization, including the implementation of specific duty rates, the review of EAC Rules of Origin, and the application of the revised Common External Tariff. Efforts to remove measures contravening the EAC Customs Union Protocol and to align national definitions of ‘import’ are also on the agenda, aiming to facilitate a true single market.
Progress on establishing the institutions required for a future East African Central Bank and the implementation roadmap for the EAMU will be reviewed. This includes assessing macroeconomic convergence, with partner states working to meet benchmarks for fiscal deficits, foreign exchange reserves, and public debt.
Financing the Community is another key item, with discussions on a new financing formula set to take effect in July 2026. Modalities for paying contributions in local currencies and phasing out overdraft facilities are also being considered. The meetings underscore the interconnectedness of budget discipline, trade rules, and monetary union for realizing the EAC’s economic potential.