This statement was made at the 29th meeting of the Committee on Monetary Affairs (MAC) of the EAC. The meeting was held by the head of the Bank of Uganda, Michael Atingi-Ego. The heads of the central banks of Uganda, Kenya, Tanzania, Rwanda, Burundi, South Sudan and Somalia participated, as well as representatives of the EAC Secretariat. The head of the Central Bank of the Democratic Republic of the Congo, Andre Wameso Nkualoloki, could not arrive and sent an apology.
Opening the meeting, Michael Atingi-Ego, Governor of the Bank of Uganda, noted the growing external pressure on the East African economy: geopolitical instability, the transformation of global trade policy and the uncertainty of financial markets, which undermines economic stability. «Geopolitical tensions are rising, and trade policy is changing. We operate in conditions of fluctuations in global financial markets, which leads to higher prices for raw materials. As a result, current account deficits are widening, putting pressure on exchange rates and constraining the build-up of reserves in a number of countries», he said.
He stressed that the transforming global environment requires more decisive action from regional central banks. «Such conditions require robust and flexible policy frameworks, effective early warning systems, enhanced forecasting and stress testing capabilities, more transparent policy communication, and the use of regional platforms to coordinate measures», added Atingi-Ego.
Despite the global challenges, the head of the bank noted the significant stability of the region's economies. Referring to the IMF's «Regional Economic Forecast» published in April 2026, he pointed out that the economies of the EAC countries expanded by 5.3% in 2025, and growth of 5.4% and 5.6%, respectively, is projected for 2026 and 2027, which is higher than the average for sub-Saharan Africa. «I am optimistic about the sustainability of our economies. Maintaining this trend will require sound macroeconomic management and close coordination of fiscal and monetary policies», he said.
The Committee noted that, despite the impact of rising oil prices, transport difficulties and slowing global growth, East Africa would retain its status as one of the most dynamically developing regions of the continent. Regional economic growth in 2026 is projected to be about 5.2%, which is higher than the average for sub-Saharan Africa (4.3%), while average inflation in the region decreased to 6.7% in 2025/26 from 9.6% a year earlier.
The heads of banks are confident in the stability of regional currencies due to diversified inflows of foreign currency, reforms of the domestic foreign exchange market and strengthening investor confidence. Atingi-Ego called on central banks to prepare for the impact of artificial intelligence and digital technologies on financial systems, noting that they open up opportunities but generate new regulatory risks. «While promoting the currency integration of YOU, we must take into account the role of artificial intelligence, big data and digital innovations in finance. These technologies are transforming productivity, financial products and payment systems, changing approaches to assessing inflation and monitoring economic activity», he stressed.
He called on Member States to develop a unified regional strategy in the field of artificial intelligence, including harmonized regulatory frameworks, innovation hubs and regulatory sandboxes, in order to prevent regulatory arbitration and promote responsible innovation. The heads of banks also emphasized the need to deepen regional financial markets to improve the mobilization of savings, investment, and monetary policy transmission, while ensuring that innovations such as derivatives markets are accompanied by strict regulation and consumer protection.
The meeting discussed progress in the implementation of the revised roadmap for the creation of an East African Monetary Union and the introduction of a single currency by 2031. Participants noted the achievements of Member States in harmonizing monetary policy frameworks, improving analytical capabilities, strengthening risk management systems, enhancing policy coordination, developing the East African Payment System, and investing in human capital. However, they acknowledged that no member State has yet achieved all four main criteria of macroeconomic convergence necessary to launch a monetary union. «Our commitment to the monetary union is indisputable, but we consistently fail to achieve convergence criteria, including reserve and inflation targets», Atingi-Ego said. «To adjust the course, we must strengthen mutual control mechanisms and consolidate binding national action plans in strict fiscal consolidation schedules and harmonized policy frameworks», he added.
The Committee agreed to accelerate the implementation of the roadmap of the monetary union by creating a mutual control mechanism to strengthen macroeconomic supervision and develop an operational framework for the implementation of the Five–Year Development Strategy of the EAC for 2026/27-2030/31.
The heads of the banks also reviewed the progress in the implementation of the Master Plan of the EAC Payment System for Cross-border transactions, aimed at reducing transaction costs, improving interaction between national payment systems and stimulating intraregional trade. The Committee reported that the implementation of the master plan has already begun: annual work plans have been prepared, priority projects have been identified, and financial and technical resources are being mobilized.
Regarding financial stability, the heads of banks noted that the region's banking sector remains sufficiently capitalized and liquid, although they warned that cybersecurity threats continue to pose risks to financial systems. They committed to strengthening regional cooperation in countering cyber threats, continuing efforts to expand financial accessibility through digital financial services, in particular mobile money.
Atingi-Ego also called for closer cooperation between fiscal and monetary authorities as the level of public debt in the region continues to rise. «Maintaining macroeconomic stability depends on coordination between monetary and fiscal authorities while maintaining the independence of central banks. Such coordination is necessary to maintain a stable level of debt and generate inflationary expectations», he stressed.
Concluding the meeting, the Governors expressed gratitude to the Bank of Uganda for organizing the event and reaffirmed their commitment to strengthening cooperation in the monetary and financial sphere, deepening regional financial integration and ensuring the achievement of the East African Monetary Union goal by 2031.
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