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East Africa
Economy - Development | Politics

EAC agrees on monetary union

afrol News, 22 August - The East African Community (EAC) member countries have endorsed the establishment of customs integration and monetary union by 2012. This would be a prelude to the steps towards turning the economic bloc into a political federation.

EAC previously consisted of Kenya, Uganda and Tanzania, but the bloc accepted the membership of Rwanda and Burundi. Its 6th extraordinary summit was held in Arusha, Tanzania.

At the end of the summit, a statement was issued, expressing the member states’ undivided support for the “need to move expeditiously toward establishing a common market and a monetary union.”

The economic grouping saw “the necessity to mobilise and deepen sensitisation among the population also on the importance of political integration.”

The regional body welcomed new parliamentarians from Burundi and Rwanda. This increased the number of regional parliamentarians from 33 to 55.

The community also appointed a commission of trade ministers to design a guiding document on the Economic Partnership ahead of talks with the European Union in December.

The East African Community is reeling with rifts and mistrust, which resulted to some a delay in turning the bloc into a political federation with a single government. Most Tanzanians, who believed a political federation would give leverage to Kenyans to invade their economy, rejected the fast-tracking of the creation of a regional political unity.


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