The East African Community Council of Ministers, the blocs central decision-making and governing organ, has designated July 1, 2021, as the date for the coming into being of the long-overdue East African Monetary Institute (EAMI). The EAMI is a transitional mechanism to the East African Central Bank that will issue the single currency that is expected to be in place by the year 2024. This long-awaited regional monetary institute, a precursor to a regional central bank, is one of the four institutions expected to carry out much of the preparatory work for the creation of the East African Monetary Union (EAMU). The other three institutions are the: EAC Financial Services Commission; EAC Surveillance, Compliance and Enforcement Commission, and EAC Statistics Commission. Establishing the EAMI; initiating its pertinent legal instruments, identifying the host partner state, signing host country agreements and operationalising the institute were activities earlier set to be concluded by 2015 but there were delays due to protracted negotiations on how things would be structured. In April 2018, a step was taken in as far as the legal instruments are concerned as the East African Legislative Assembly passed the EAC Monetary Institute Bill. In February 2019, EAC Heads of State assented to the Bill. The operationalization of the regional monetary institute will set the six-member regional economic community on a journey towards the single currency by 2024 as envisaged in the East African Monetary Union Protocol, which was approved way back in 2013. It is anticipated that the Monetary Union, the third pillar in the EAC integration agenda, will be in place in 2024 with the introduction of a common currency and the establishment of a regional central bank. Criteria for the establishment of the Monetary Union include the attainment of macroeconomic convergence criteria, establishment of institutions to support the Monetary Union and harmonization of policies and regulatory frameworks. Who will host EAMI? As noted, the Council of Ministers further directed the EAC Secretariat to convene a meeting of the Sectoral Council of Finance and Economic Affairs to develop an institutional structure for the EAMI by September 30. The Ministers also directed the Secretariat to initiate the process of identifying the Institute’s host Partner State, in accordance with the EAC procedures, reads part of an EAC statement. Sources say all partner states want to host the new institution and, as such, it is too early to tell where it will be based. The country that will host EAMI will cover office rent, office equipment, utilities and other support for the first two years, as directed by the Ministers. According to EAC rules and procedures, a partner state that wants to host any institution must write to the EAC Secretariat indicating its interest to host a particular institution or organ. Rwanda had indicated it wishes to host the institution, Manasseh Nshuti, Minister of State in charge of EAC affairs told The New Times on Monday, March 1. We have a high chance of hosting it because we are hosting one (mainstream) EAC institution; EASTECO. We need to host more. Rwanda hosts the East African Science and Technology Commission (EASTECO) which governs the partner states cooperation in the development and implementation of science and technology. Kigali is also home to the East African Communications Organization (EACO), a regional autonomous organization that is yet to be mainstreamed in the blocs structures.
