MOMBASA, Kenya (May 9, 2025) — The 28th ordinary meeting of the East African Community (EAC) Monetary Affairs Committee (MAC) took place in Mombasa, Kenya, on May 9, 2025. Central bank officials from across the EAC region gathered to discuss the economic outlook, progress on the East African Monetary Union (EAMU) roadmap, and regional financial stability. The meeting included representatives from the central banks of Burundi, Rwanda, South Sudan, Tanzania, Uganda, Somalia, and the Democratic Republic of Congo.
Chaired by the Governor of the Central Bank of Kenya, the session addressed key issues such as inflation trends, the region’s growth prospects, and ongoing efforts to integrate monetary policies across the region. “We are committed to strengthening the region’s financial systems and ensuring continued economic resilience in the face of global challenges,” the chairperson said in opening remarks.
Representatives from Somalia and the Democratic Republic of Congo attended the meeting for the first time since their countries joined the EAC. “We welcome the participation of the central banks of Somalia and the Democratic Republic of Congo. Their inclusion is a significant step towards deeper monetary integration in East Africa,” the chairperson added.
The meeting was held amidst heightened global economic uncertainty, with trade tensions and geopolitical risks affecting global growth. Despite these challenges, the EAC region showed resilience in 2024. “While the region faced external shocks, key sectors like agriculture and services continued to drive economic performance,” said one of the attending governors. “Growth was particularly strong in some Partner States, supported by favorable weather conditions and improved agricultural output.”
The EAC central bank officials projected a GDP growth rate of 5.8% for the region in 2025, which is expected to outpace global and Sub-Saharan African growth. “This growth forecast is underpinned by strong agricultural performance and the region’s ongoing efforts to maintain macroeconomic stability,” a representative from Uganda noted.
However, the committee acknowledged risks that could impact future growth. “We are closely monitoring the effects of ongoing trade tensions and the potential impacts of climate change on our economies,” the chairperson said. “The risks are real, but we remain committed to ensuring that our region can withstand these external shocks.”
Inflation in the EAC region declined to 9.0% in 2024, down from 11.2% in 2023, reflecting improved food supply and easing global commodity prices. “The decrease in inflation can be attributed to better weather conditions and our continued efforts to manage monetary policy effectively,” said one of the governors. “While we expect inflation to continue moderating, we must remain cautious due to the potential for future external shocks.”
The committee also reviewed progress on the East African Monetary Union (EAMU), which aims to establish a single currency by 2031. “We have made significant strides in harmonizing monetary policies and enhancing financial system stability across the region,” the chairperson noted. “However, there is still work to be done to ensure full integration and alignment in the coming years.”
The region’s financial sector was described as stable, with adequate capital and liquidity buffers, though challenges remain. “While the financial sector is robust, we are mindful of slowing credit growth and the growing threats from cyberattacks,” an official from Tanzania remarked. “We are taking steps to address these risks, and we believe the region remains well-positioned for continued economic growth.”
In a bid to strengthen regional financial resilience, the committee approved a Memorandum of Understanding (MOU) for information sharing on crisis management. Additionally, the committee adopted a new Cross-Border Payment System Masterplan, which aims to modernize and integrate payment systems across the region. “This masterplan is a significant milestone towards improving the efficiency, safety, and inclusiveness of cross-border payments in East Africa,” a representative from the Bank of South Sudan said.
The meeting concluded with expressions of gratitude to the Central Bank of Kenya for hosting the session. “We appreciate the warm hospitality and excellent arrangements made for this important meeting,” the chairperson concluded.
