Uganda Lags Behind in Currency

Uganda is lagging behind in ratifying the East African Monetary Union Protocol.

Edward Ssebina, the Assistant Commissioner Production and Social Services in the East African Affairs ministry said, Burundi, Kenya and Uganda had said they were in the process of ratifying it, but no specific dates have been given.

Briefing the media in Kampala last week, Ssebina said the country had initiated the process to ratify the protocol, but since the regime needs a constitutional amendment, it would have to be considered by several state institutions.

“This particular ratification calls for a constitutional amendment as it will require the Central Bank to cede its powers to the proposed East African Central Bank,” he said.

He said areas that needed fast tracking included the harmonisation of laws so that for example Uganda laws can conform to those of the other EAC countries.

He said “Uganda has identified seven laws and these include those relating to investment, immigration, external trade, surveyors among other that need to conform with the Common Market Protocol.

Ssebina said reviews about progress towards political federation, were in the process of being drafted to get a constitution for the eventual political federation.

Tanzania and Rwanda are the first EAC countries to ratify the Monetary Union Protocol. “The passing of the protocol means that Tanzania has formally committed itself to implementing the regime, the third stage of regional integration, after the Customs Union and the Common Market Protocols,” he said.

The Protocol establishing the East African Monetary Union was signed by the EAC Heads of State on 30 November 2013, in Kampala Uganda during their 15th Ordinary Summit.

Under the Protocol, the EAC partner States are expected to surrender monetary and exchange rates policies to the East African Central Bank leading to a single currency regime within the region, whereas National Central Banks will remain with the mandate of managing Fiscal policy, Fiscal discipline and harmonize them with the other Partner States’ National Central Banks.

Source : East African Business Week

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