Monetary union achieves legal clearance

Arusha. The draft East African Monetary Union (Eamu) has been cleared for approval and signing by regional leaders yesterday during the East African Community (EAC) Heads of State Summit slated for Kampala on November 30.

• The EAC Sectoral Council on Legal and Judicial Affairs during its meeting on Friday adopted and cleared the legal content of the draft Protocol the Secretariat said in a statement. It recommended that the Summit approve and sign the document.

The Attorneys General, Solicitors General as well as ministers responsible for judicial and constitutional affairs directed the Arusha-based Secretariat to use the draft document to draft the legal instrument establishing the institutions to support the envisaged Monetay Union.

The Sectoral Council noted that whereas Article 2(2) of the Treaty provides that the Customs Union and Common market are transitional and integral parts of the Community, the EAC Treaty also requires the Partner States to establish a Monetary Union pursuant to Article 151 of the Treaty.

The Sectorial Council further noted that the Monetary Union will commence upon ratification and coming into force of the Protocol for all five Partner States.

However, the realisation of the Monetary Union shall be progressive. At least three Partner States can commence a single currency in accordance with the relevant provisions of the protocol.

Addressing the Sectoral Council, the EAC Secretary General, Dr Richard Sezibera, reiterated the critical role of the Sectoral Council in ensuring that policy matters, including all programmes and projects of the Community, were pursued “in strict conformity with the Treaty and relevant legislation”.

The draft of the EA Monetary Union Protocol was adopted by the EAC Council of Ministers, the policy organ of the Community, in the middle of July this year.