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The 27th Ordinary Meeting of the East African Community (EAC) Monetary Affairs Committee (MAC) convened on May 3, 2024, in Juba, South Sudan has reviewed the progress made towards the Monetary Union.

The meeting brought together Governors and Senior Officials of the EAC Partner State Central Banks, along with representatives from the EAC Secretariat, against a backdrop of complex global economic dynamics.

The meeting deliberated the global economic outlook, as well as the impact of persistent inflationary pressures, climate change ramifications, and geopolitical tensions on the region.

Reflecting on the economic performance of the EAC region in 2023, the Committee acknowledged a range of growth rates ranging from 2.8 percent to 8.1 percent, largely attributed to advancements across key sectors and commitment to the implementation of policy reforms that have promoted private and public investment in some Partner States.

Looking forward, the Committee foresees continued regional growth outpacing global and Sub-Saharan Africa benchmarks, supported by sustained public investment, enhanced export performance, and pro-private sector measures.

However, the region grapples with challenges, including adverse global financial conditions, geopolitical turmoil, and climate change ramifications, resulting in the amplification of challenges like high fuel and food import prices, market access costs, and currency and reserve pressures.

A focal point of deliberation centered on inflation trends, which, while having escalated in 2022 and 2023, have since eased following the implementation of appropriate monetary policies and the easing of global commodity prices.

Moreover, discussions delved into the strides made towards the establishment of the East African Monetary Union (EAMU), emphasising commitments to harmonise monetary policies, financial regulations, and crisis management frameworks. The Governors pledged to continue working with the relevant authorities to advance the regional integration agenda.

Significant achievements were noted, including the adoption of price-based monetary policy frameworks, harmonisation of macroeconomic and financial statistics, and the promotion of cross-border payment systems. 

However, the Committee reaffirmed its dedication to fulfilling the remaining objectives outlined in the East African Monetary Union roadmap, with a renewed focus on convergence criteria review to meet the revised 2031 deadline.

In a gesture of inclusivity, the Committee extended a warm welcome to the Central Bank of Somalia as the newest member of the EAC Monetary Affairs Committee, underscoring the collective commitment to supporting Somalia's integration into the EAC.

The 27th MAC meeting underscores the EAC's resolute commitment to navigating economic challenges, fostering regional cooperation, and advancing toward a unified monetary future.