EAC presidents to sign preparatory joint monetary laws at March summit

ARUSHA - The journey towards a single East African Community (EAC) currency is expected to move a step closer with the signing of crucial laws at the Heads of State summit scheduled to take place in Arusha, Tanzania, on March 7 this year.

The event is expected to bring together Presidents Yoweri Museveni, Evariste Ndayishimiye, Felix Tshisekedi, Paul Kagame, William Samoei Ruto, Samia Suluhu Hassan, Salva Kiir Mayardit and Hassan Sheikh Mohamud. The summit was originally scheduled to take place in early December 2025, but was later rescheduled.

Edith Mwanje, the permanent secretary at the Ministry for East African Community Affairs, disclosed this on Thursday (February 26) during an engagement with lawmakers on the Public Accounts Committee Central, which was chaired at the time by Gorett Namugga.

“In terms of the East African monetary union, in fact, we have laws that are going to be assented to in this summit. A law that establishes the institutions, the statistical bureau and the compliance and surveillance institute,” said Mwanje.

“There is a lot of integration that is happening as far as the work that banks do; they are working together. We, however, have delayed in putting in place the East African Monetary Institute (EAMI), which is a precursor to the central bank of East Africa. The decision has to be taken on who hosts its headquarters, that’s what has delayed. Four countries bided including Uganda, and a final decision will be taken,” she added.

EAC protocol

Article 5(1) of the Treaty for the Establishment of the East African Community defines the objectives of the Community as widening and deepening cooperation among Partner States in the political, economic, social and cultural fields.

The treaty, which came into effect twenty seven years ago, further commits Partner States to establish a joint customs union, common market, monetary union and ultimately a political federation to strengthen regional integration.

Crucial milestones

In line with this framework, Partner States signed the East African Monetary Union Protocol on November 30, 2013, setting out an initial ten-year roadmap towards the adoption of a single currency. This timeline was later extended to allow for the attainment of key convergence milestones.

The roadmap provided for the establishment of four institutions to lay the groundwork for the monetary union. Central among them is the East African Monetary Institute, which is tasked with policy harmonisation and developing the framework for a single currency.

The other three institutions are the EAC Financial Services Commission, the EAC Surveillance Compliance and Enforcement Commission and the EAC Statistics Commission.

Uganda-South Sudan e-permit dispute

Leo Kizito Ojara, commissioner for economic affairs at the Ministry for East African Community Affairs, told Members of Parliament that another key issue expected to dominate discussions is the persistence of non-tariff barriers.

These barriers continue to hinder regional trade despite the adoption of the EAC Elimination of Non-Tariff Barriers Act, 2017.

Digitised import and export permits are at the centre of what appears to be a growing trade dispute between Kampala and Juba.

“For the last couple of weeks, there was an introduction of a new tariff by the Republic of South Sudan called an E-Permit. The E-Permit has different levels of taxes that were introduced by South Sudan, this was in November of 2025,” Ojara stated.

“Now, vehicles and trucks crossing with goods from Uganda to South Sudan are expected to pay. However, it has been realised that the payment is excessive. Because you find one container is expected to pay $500 (equivalent to sh1.8 million) to $1,000 (sh3.5 million), and this is in different ranges,” he cited.

Ojara said the issue has already been raised and is likely to be discussed at the EAC Council of Ministers meeting, which precedes the main summit.

“There is a big problem at the border, you realise that even supplies of products to Juba are in shortage. Currently, a kilo of sugar is going for between sh10,000-sh15,000 because all the trucks are stuck,” he explained.

“And there has extensive communication between the EAC Secretariat, Ministry of EAC, our PS has written severally to these people, Uganda Revenue Authority (URA) is aware of what is happening. But it is the mandate of the Republic of South Sudan to lift or reduce those tariffs,” Ojara urged.

MPs React

Elgon County MP Ignatius Womakuyu Mudiimi said the situation raises concerns about whether the EAC is effectively serving its integration objectives.

“Yesterday, I watched news on TV where trucks were stranded in Nimule, over 1,000, because of restrictions on the other side of South Sudan. We need to know, really, is it helping us to solve the purpose of integration, or it is just there, just a conduit for people to take up political positions?” Mudiimi wondered.

Despite acknowledging the efforts of the Ministry for East African Community Affairs, several lawmakers, including Suzan Mugabi and Silas Aogon, said the ministry needs to increase its visibility at the grassroots level.

“Our fishermen have been having issues in regard to boundaries on water, especially those from Uganda and Kenya. We’ve been having so many conflicts, security operatives from Kenya attacking our people from Uganda on Lake Victoria. But we have not been hearing your voice come out,” Mugabi inquired.

“We have never heard a program by the EAC ministry, for instance, in my constituency or even region, that today you are on radio talking about EAC and there are opportunities which are there. I don’t know how much it costs. I’m told there is airtime for resident district commissioners (RDCs), you can even use it free of charge, but I have not heard,” Aogon argued.