East Africa set for historic shift as states adopt EU-type monetary union plan
- Deal potentially transforms EAC into a strong single market with enhanced clout in African and global trade.
With the signing of the East African Community Monetary Union Protocol, the five member countries start on a journey that will eventually see them operate a single currency, potentially transforming them into a strong single market with greatly enhanced clout in African and global trade but also exposing them to risk of stumbling from crisis to crippling crisis in the manner of the Eurozone.
Under the Protocol, whose signing ends nearly four years of haggling, Tanzania, Rwanda, Uganda, Burundi and Kenya will harmonise their economic and monetary policies for long-term growth.
Among the key indicators that the member countries must harmonise are inflation rates, the tax to GDP ratio, debt…
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