Callstreet CEO on what the EAC needs to attain single currency by 2024

The East African Community (EAC) member states have been on a trajectory towards the realization of a single currency by 2024 since the ratification of the East African Monetary Union in 2014. However, six years down the line, the journey towards harmonizing policies and achieving this ambitious goal remains steeped in challenges and complexities. In a recent interview with CNBC Africa, George Bodo, the CEO of Callstreet, shed light on the various stumbling blocks hindering the progress towards a unified currency. Bodo reflected on the initial ten-year roadmap established to pave the way for a single currency by 2024. While acknowledging the inherent difficulties in establishing a monetary union, he highlighted the lack of traction since 2015, indicating a significant lag in the implementation timeline. The foundational premise of a monetary union being rooted in a political union was underscored, with Bodo emphasizing the necessity of robust political alignment among member states within the EAC. The very essence of a monetary union rests on a collective surrender of certain national sovereignty aspects, including central banking functions. Bodo pointed out that the path to a unified central bank entails relinquishing individual countries' control over critical aspects such as interest rates and currency valuation—a challenging proposition for nations deeply attached to such financial autonomy. Additionally, the seamless movement of goods, capital, and labor across borders, a hallmark of a successful monetary union, has been marred by non-tariff barriers and disparities in fiscal discipline across EAC countries. Addressing the economic gains of a single currency regime, Bodo emphasized the creation of one expansive market encompassing approximately 20 million people across the EAC region. A unified market would foster enhanced trade opportunities, capital flows, and labor mobility, thereby catalyzing economic growth and development. By consolidating trade within the region and potentially attracting neighboring nations like the Democratic Republic of Congo and South Sudan, the EAC stands to bolster intra-regional commerce and bolster its economic prospects. The road to a single currency is laden with intricate challenges and multifaceted hurdles that necessitate concerted efforts from member states to overcome. The requisite political will, fiscal discipline, and commitment to harmonize policies are instrumental in propelling the EAC towards its envisioned monetary integration. As the EAC grapples with the complexities inherent in advancing towards a unified currency, the aspiration for a single ESC currency by 2024 remains a formidable goal that requires meticulous planning, robust governance structures, and unwavering cooperation among member states.