Kigali Hosts EAC Monetary Union Protocol Negotiations

Kigali is hosting talks aimed at establishment of a central bank and other institutions in the East African region.

Rwanda’s chief negotiator, Dr Frank Kigabo also Chief Economist at the National Bank of Rwanda, noted that deliberations are focused on remaining articles promising that these would be finalised by the end of the meeting this Saturday.

“We have to establish various institutions like a regional central bank, enforce mechanisms, monetary institutions and a statistics bureau before the single currency comes into force,” he told The New Times.

The meeting will negotiate draft provisions 68 – 81 of the draft EAMU Protocol covering Part M on General Provisions.

The above provisions touch on among others: Harmonization of Policies, Laws and Systems; Law(s) Governing the Monetary Union; Business Continuity Mechanism; Safeguard Measures; Instruments to Support Partner States with Macroeconomic and Structural Imbalances; Admission, Suspension, Expulsion and Withdrawal and Inter linkages with other Areas of Cooperation.

Addressing the delegates this morning, the Deputy Secretary General in charge of Planning and Infrastructure Dr. Enos Bukuku said the meeting marked another bold testimony to the collective resolve to deliver a Protocol on Monetary Union for the people of East Africa and in many respects lower the cost of doing business in the region.

He said the provisions to be negotiated during the Kigali meeting were critical to any monetary union because they underpin any integration initiative in this sector.

He therefore urged all Partner State delegates to do their utmost to build consensus quickly. “We can ill afford brackets at this advanced stage of our negotiations” cautioned Dr. Bukuku.

“Our people, energized by the benefits out of the Customs Union and the Common Market, the challenges associated with the same notwithstanding, are more than ready to embark on reducing the cost of doing business by attaining a Monetary Union” said the Deputy Secretary General.

He reminded the Negotiators that many East Africans within and beyond the region were anxiously awaiting any insights from the meeting on what needs to be done right to make monetary integration work for the EAC.

The High Level Task Force meeting is preceding the 2nd Meeting of the Sectoral Council on Monetary Union to take place 14-15 September 2012 at the same venue. The HLTF will be briefing the Sectoral Council on the progress so far made in the negotiations.