East African Community (East African Community) Partner States are grappling with uneven progress in meeting macroeconomic convergence targets, raising fresh questions over the region’s readiness for a single currency under the East African Monetary Union roadmap.
Meeting in Arusha, finance officials acknowledged that convergence performance remains inconsistent across key indicators.
The Sectoral Council noted that it will review “progress in implementing the roadmap for the realisation of the EAMU, including establishment of the four EAMU support institutions and the status of macroeconomic convergence, where performance remains mixed across Partner States, particularly on fiscal deficit, reserve cover and public debt indicators.”
The divergence highlights persistent structural imbalances across the region despite years of integration efforts under the East African Community framework and the Monetary Union Protocol, which envisages eventual adoption of a common currency once strict fiscal and monetary thresholds are met.
Economists have long warned that disparities in debt levels, fiscal deficits, and foreign reserve buffers could delay or complicate the transition to a monetary union, a cornerstone of the EAC integration agenda.
The Council also reviewed progress on institutional readiness, including the establishment of key support structures required to operationalise the monetary union framework.
Despite ongoing reforms, officials acknowledged that convergence remains uneven, underscoring the challenge of aligning economies with differing fiscal capacities and growth trajectories.
