East African Community

The East African Community is a regional bloc that includes Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo has been working towards creating a single, unified currency. Right now, each country has its own national currency for instance, Kenya uses the Kenyan Shilling, Uganda the Ugandan Shilling, and Tanzania the Tanzanian Shilling, while Rwanda and Burundi use the Franc. These individual currencies however can create challenges for cross-border trade since exchange rates vary, making trade more complex and sometimes costly to the member states.

The goal of a single currency, sometimes imagined as the “East African Shilling”, by the locals is to simplify trade and reduce these costs. Once in place, this unified currency would ideally allow businesses and travelers to move between member states without needing to exchange money similar to how the euro functions within the European Union.

The journey to a unified currency has been long and challenging. Originally the EAC aimed for a 2024 launch, but that timeline has now been pushed back to 2031. The main challenges include aligning the economic policies of each country, creating a robust regulatory framework   and establishing a central East African bank to oversee the new currency. EAC officials including central bank governors have been meeting to keep the project on track, making progress on necessary policies and systems. For instance, they’re working to create a system where financial transactions can easily move across borders without the security or disruptions.

This currency project is ambitious but if successful would be a major milestone for East Africa. It could help increase intra-regional trade, create a stronger bargaining position for the EAC on the global stage, and foster a more connected East African economy. As it stands the journey to a unified currency still has hurdles but the potential benefits keep leaders pushing forward toward the 2031 goal.

Summary.

Country	Capital	Currency
UgandaKenyaTanzaniaRwandaSouth SudanDR. CongoBurundi	KampalaNairobiDodomaKigaliJubaKinshasaBujumbura	Ugandan shillingsKenyan shillingsTanzanian shillingsRwandan FrancSouth Sudanese pound     Congolese FrancBurundian Franc

  East African Community