The 27th Ordinary Meeting of the East African Community (EAC) Monetary Affairs Committee (MAC) took place on May 3, 2024, in Juba, South Sudan. This gathering served as a platform to assess the advancements made towards the establishment of the Monetary Union within the EAC region.
The meeting convened Governors and Senior Officials from the Central Banks of EAC Partner States, alongside representatives from the EAC Secretariat. Against the backdrop of complex global economic dynamics, discussions were centered on various issues affecting the region’s economic landscape.
One key aspect of deliberation was the review of inflation trends. It was noted that while inflation had risen in 2022 and 2023, it had since eased due to the implementation of appropriate monetary policies and the stabilization of global commodity prices. This trend was crucial in understanding the overall economic stability within the EAC.
Furthermore, the meeting addressed the global economic outlook and its implications for the region. Factors such as persistent inflationary pressures, climate change effects, and geopolitical tensions were analyzed for their impact on the economic progress of EAC Partner States.
Reflecting on the economic performance of the EAC region in 2023, the Committee acknowledged varying growth rates ranging from 2.8 percent to 8.1 percent. This growth was attributed to advancements across key sectors and the commitment to policy reforms aimed at promoting both private and public investment.
Looking ahead, the Committee expressed optimism about continued regional growth surpassing global and Sub-Saharan Africa benchmarks. This optimism was based on expectations of sustained public investment, improved export performance, and measures to support the private sector.
Despite the positive outlook, the region faces challenges such as adverse global financial conditions, geopolitical instability, and climate change impacts. These challenges exacerbate issues like high import prices for fuel and food, increased market access costs, and pressures on currency and reserves.
Discussions also focused on progress towards establishing the East African Monetary Union (EAMU). There was a reaffirmation of commitments to harmonize monetary policies, financial regulations, and crisis management frameworks. Additionally, efforts to meet the convergence criteria outlined in the EAMU roadmap by the revised 2031 deadline were emphasized.
The Committee celebrated significant achievements, including the adoption of price-based monetary policy frameworks and the harmonization of macroeconomic and financial statistics. However, it reiterated the need to fulfill remaining objectives to advance regional integration fully.
In a demonstration of inclusivity, the Committee welcomed the Central Bank of Somalia as the newest member. This gesture underscored the collective commitment to supporting Somalia’s integration into the EAC and fostering regional cooperation.
