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EAC moves towards single currency union |
East Africa Community Minister, Amason Kingi, said to set the ball rolling, the regional trading block was working on the introduction of a monetary policy geared towards the realisation of a single currency by 2012.
Speaking at a sensitisation workshop for provincial administration on the role of regional integration here, the minister said other areas being looked at were a common market and a political federation, all aimed at boosting the economy of the region.
The minister said to attain the goals, the five EAC members - Kenya, Uganda, Tanzania, Rwanda and Burundi - must cooperate on research, human resource development and science and technology in development.
"Progress has been made in the promotion of investments and trade as well as identification and development of various regional infrastructure projects cutting a cross roads, railways, civil aviation, post and telecommunications, energy and Lake Victoria development programme," he told the administrators.
"Even as we celebrate the milestones achieved so far, we must be prepared for challenges that are likely to emerge from integration," said Kingi.
But he had a word or two on the challenges presented by regional integration, saying; "A borderless region while making trade and investment thrive also has the potential to spawn new challenges in the form of cross border crime, robberies and drug trafficking."
To attain the goals, the Kenya government and the EAC are making efforts to sensitise the provincial administration on the integration process.
Kingi felt that the police, disaster operation centres and those charged with the responsibility of securing the boundaries and airstrips needed to be more informed.
"At EAC we are aware that formulation of regional policies such as foreign and security, communication and other sectoral policies will go along way in curbing incidences of regional insecurity and in the process move closer to achieving an economic hub in this region," said Kingi.
Speaking at the workshop, EAC Deputy Secretary-General in charge of political federation, Beatrice Kiraso, observed that the integration had a number of economic benefits for the partner countries.
Kiraso noted that economies of scale in the exploitation of development opportunities would be achieved in addition to better management of shared resources like the Lake Victoria, Mt. Kilimanjaro and Mt. Elgon.
"Marketing of East Africa, as a single tourist destination, will earn the region more than when the partner countries are competing making it unhealthy competition," she said.
"Free movement of people, good and labour would spur economic growth and well being of the region citizenry," Kiraso said, adding that benefits of comparative advantage, economies of scale and efficient use of public resources through pulling together of resources would be attained.
She also noted that duplication of cost borne by individual states for the same services would be avoided, saying that a common currency for the region would benefit people since some amount would be lost during the foreign exchange.
Social and economic benefits foreseen by the integration are cost effective poli tical administration, conservation of cultural heritage, and use of a common language, peaceful coexistence and settlement of dispute.
Kiraso said the community had previously collapsed due to different economic ideologies pursued by partner countries.
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