East Africa: Mutual suspicion stifling drive for common currency pillar
The proposed single currency was intended to reduce cross-border transaction costs, increase intra-regional trade, and strengthen East Africa’s bargaining power in global markets.
The East African Community’s vision of a single currency is under threat due to political pressure, staff shortages, and the significant challenge of aligning key economic indicators. Together, these issues have delayed the implementation of the third pillar of regional integration.
The proposed single currency was intended to reduce cross-border transaction costs, increase intra-regional trade, and strengthen East Africa’s bargaining power in global markets. It would also spare truck drivers long waits at border crossings such as Malaba, where they have to exchange currencies, while allowing small-scale traders in Kigali, Mombasa and other regional markets to trade more seamlessly.
