Sezibera insists Monetary Union will be a reality

Common currency Euro issues serve as lessonsWhile international economists advise that the East African Community should take time before setting up a monetary union for the region, the Secretary General of the Community, Dr. Richard Sezibera, insists Partner States are committed to turning the EAC Monetary Union (EAMU) into reality.International economists have advised that the Community should not rush into setting up a monetary union to avoid any future crisis that might arise, citing the ongoing Euro Zone currency difficulties as a case in point.However, Ambassador Sezibera said: “I would like to state unequivocally that the lessons of Europe as those of other regional economic communities serve as lessons to help strengthen and shape the EAC Monetary Union.” He was addressing the EAC-IMF regional conference on the integration of the financial sector in Arusha, Tanzania, early this week.He says that apart from the ongoing negotiations of the EAMU Protocol, the Partner States have intensified preparedness for the crucial harmonisation of Monetary and Exchange rate policies, payment and settlement system, and regionalisation of the financial sector in order to create a single financial market.The high level conference was aimed at brainstorming on the current status, achievements and prospects of the East African Community, with special reference to the integration of the financial sector.It was attended by a broad spectrum of stakeholders of the EAC integration and global development partnership, including policy makers, scholars and researchers, business leaders, and civil society.Dr. Sezibera appreciated the IMF for its technical and other support towards the EAMU process.“It was a great honour for the EAC to be granted observer status at the IMF, a great gesture of the Fund’s belief in us. I would like to assure the Fund that the Partner States of the EAC are committed to turning the EAC Monetary Union into reality,” he added.Ambassador Sezibera expressed hope that the conference would brainstorm on how to avoid the pitfalls being experienced in the Eurozone, adding that at the end of the day, East Africa will have to craft a Monetary Union that serves her unique purposes and aspirations.On capital markets, he observed that the removal of restrictions on capital flows should serve as a catalyst for capital market development and the provision of long term and risk capital most needed to spur economic development.He pointed out that at the EAC level; there are definitive programmes towards the promotion of a regional capital markets regime and institutions.He cited the Customs Union and Common Market, strong institutions, and legal frameworks among the projects which have been successfully executed.Recognising a big challenge ahead, Sezibera called for sharing of experiences and best practices as well as identifying areas of strategic co-operation to push forward the regional integration and its development objectives.He noted that the 4th EAC Development Strategy (2011-2016) not only signals the entry of the EAC into the new phase of deepening the integration process but also marks a watershed in the evolution of the Community to the concretisation phase.“It would not be business as usual as the EAC moves to the next stage,” he said.Noting that the ultimate aim was to establish a Political Federation, he reiterated the bloc’s primary objective to develop a single market and investment area in East Africa that is anchored on the twin pillars of internal free trade and liberal trade with the rest of the world.The seemingly hot debate about the monetary union comes as the EAC Summit of Heads of State has set a 2012 deadline for the envisaged Monetary Union. In attendance were representative Ministers of Finance and Economic Development, the IMF Deputy Managing Director, Governors of Central Banks and Minister Responsible for Finance of the Government of the Republic of South Sudan.

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Sezibera insists Monetary Union will be a reality