DAR ES SALAAM — The East African Community (EAC) has set 2031 as its target for introducing a single regional currency and establishing the East African Central Bank under the East African Monetary Union (EAMU), keeping alive a project that has already slipped past its original schedule.
The framework is guided by the EAMU Protocol, signed on November 30, 2013. The single currency is intended to eliminate exchange rate fluctuations, lower cross-border transaction costs and boost trade among member states.
Central bank governors reaffirmed 2031 as the active target at the 29th Monetary Affairs Committee meeting in July 2026. The date follows the deferral of the protocol’s original 10-year timeline, as well as earlier projections of 2024 and 2025 that were not met.
The plans also include a conditional clause. Implementation could proceed ahead of schedule if at least three partner states meet the agreed macroeconomic convergence criteria. This means the pace of the union rests on the fiscal and monetary discipline of individual member states, particularly how governments tax, spend and borrow, rather than on a fixed calendar date alone.
The convergence criteria set under the protocol include ceilings on headline inflation, the fiscal deficit and public debt, alongside a minimum level of foreign exchange reserves. Several member states have struggled to meet these benchmarks consistently, which has been a key factor behind the delays.
For corporates, banks and telecoms operating across the region, a single currency would remove foreign exchange risk on intra-EAC trade and simplify cross-border payments and treasury management. It could also reduce the cost of currency conversion for regional supply chains and mobile money interoperability. Firms may still want to plan on the basis that the 2031 date depends on member-state convergence, and could shift again.