The MPs made discussed the challenges during a visit to the Rwandan Senate. The visit aimed to showcase the achievements of Rwanda during its 25 years as a member of the regional bloc.
MP Fatuma Ndangiza, who leads the team of nine Rwandan representatives in EALA, stated that while the assembly has taken steps to prepare for the single currency initiative, certain actions are pending at other levels of governance.
'There are institutions that need to be established. As a legislative body, we have passed the required laws, but at the level of the heads of state, there are agreements that need to be expedited,' said Ndangiza.
She also highlighted that some member states are lagging behind in implementing crucial measures needed to pave the way for the single currency.
'When it comes to the EAC Common Market, progress is still slow. Achieving the single currency depends heavily on the full realization of the Common Market, which is one of the two key pillars that must be implemented almost entirely,' she added.
The EAC single currency policy, introduced in 2013, aimed to prepare all necessary groundwork within a decade to launch the currency.
The project was initially well-received, as it promised to simplify regional trade by reducing reliance on the US dollar and boosting economic integration.
However, progress has been slow due to delays in implementing foundational steps.
For instance, in 2016, during a meeting of EAC central bank governors, it was reported that preliminary work on their end had been completed, raising expectations that the currency would be introduced by 2024.
One major factor delaying the project is the establishment of the East African Monetary Institute (EAMI), tasked with laying the foundation for the single currency and eventually serving as the region's central bank.
The institute was supposed to be operational by 2015 but has yet to be established.
In 2023, Rwanda's Central Bank Governor, John Rwangombwa, emphasized that several critical steps remain before the single currency can be launched.
However, he expressed optimism that these steps could be completed, enabling the EAC to introduce the currency by 2031.
IGIHE
