Tanzania to Host the Central Bank of East Africa?
A single currency for the East African Community is in the works, but first a regional monetary institute is needed and Tanzania intends to host it
With the East African Community being headquartered in Arusha, Tanzania’s Safari Capital, there are indications that the country may also host the proposed East African Central Bank.
Already the Tanzanian Minister of Finance and Planning Dr Mwigulu Lameck Nchemba has just presented the country’s proposal to be allowed to host the preceding East African Monetary Institute.
The proposed East African Monetary Institute (EAMI) is the transitional mechanism to the forthcoming ‘Benki ya Afrika Mashariki,’ the Regional Central Bank.
The East African Community Central Bank (EACCB) is going to be the facility which will issue the regional single currency, previously planned to be in place by the year 2024, if all goes well.
“Tanzania has always been ready to host the East African Monetary Institute and the country has already prepared all the location and required facilities towards ensuring the establishment and proper performance of the EAMI!”Dr Mwigulu Lameck Nchemba – Minister of Finance and Planning, Tanzania.
The Minister submitted Tanzania’s proposal to host the EAMI during the special meeting of the regional Assessment and Evaluation Committee Meeting which took place in Arusha.
According to the Fiance Minister, it is vital and logical for the East African Monetary Institute to be established in Tanzania because already the country hosts the East African Community Secretariat, the East African Legislative Assembly and the Regional Court of Justice.
Uganda hosts the East African Development Bank (EADB) owned jointly with Kenya, Rwanda and Tanzania, the African Development Bank and other smaller shareholders.
There were even plans to mainstream the EADB into the East African Community structure, thus transforming it into a regional monetary institution, but the idea didn’t seem to blossom.
But on that sentiment, Uganda had also appealed to host the East African Monetary Institute.
The East African Sectorial Council of Finance and Economic Affairs was supposed to develop an institutional structure for the EAMI by 30th September 2021, but it seems things never seem to work out towards this end.