KAMPALA, July 27, 2026 – East African Community [EAC] Partner States must deepen monetary cooperation, strengthen policy coordination and accelerate reforms towards monetary integration as the region faces growing global economic uncertainties, Bank of Uganda [BoU] Governor Michael Atingi-Ego has said.
Speaking during the official opening of the 29th Ordinary Meeting of the East African Community [EAC] Monetary Affairs Committee [MAC] in Kampala on Friday, Atingi-Ego said emerging challenges, including geopolitical tensions, volatile commodity markets, changing global trade policies and rapid technological advancement, require stronger regional responses.
“We meet at a time of profound change in the global economy, as growth dynamics are increasingly shaped by artificial intelligence, shifting commodity markets and evolving trade policy,” Atingi-Ego said.
He said although inflation has moderated in many economies, uncertainty in global financial markets continues to affect commodity prices, exchange rates and economic outlooks, requiring EAC countries to strengthen their resilience.
“These conditions call for sound and adaptive policy frameworks: robust early-warning systems, rebuilt buffers, stronger forecasting and stress-testing capacity, clearer policy communication to anchor expectations, and continued use of our regional platforms to coordinate policy responses,” he said.
The Governor highlighted the resilience of EAC economies, noting that the region’s economic growth was estimated at 5.3 percent in 2025 and projected to rise to 5.4 percent in 2026 and 5.6 percent in 2027.
He, however, cautioned that sustaining the growth momentum would require prudent macroeconomic management and closer cooperation between fiscal and monetary authorities.
“Sustaining this momentum will require continued prudent macroeconomic management and closer fiscal-monetary coordination to help our economies withstand future shocks,” he said.
Artificial intelligence reshaping financial sector
Atingi-Ego said artificial intelligence [AI], big data and digital innovation are rapidly transforming the financial sector and creating new opportunities while presenting regulatory challenges.
He noted that emerging technologies are changing how policymakers monitor economic activity, assess inflation trends, identify financial sector risks and communicate policy decisions.
“These technologies are reshaping labour productivity and income distribution, diversifying financial products and payment systems, and transforming how we assess inflation dynamics, monitor economic activity, detect financial sector vulnerabilities and communicate policy decisions,” he said.
The Governor called for regional cooperation in developing governance frameworks to manage risks associated with emerging technologies.
“As a region, we must design shared AI strategies and policies that integrate our systems, capture these benefits and close the door to regulatory arbitrage,” he said.
He urged EAC Partner States to establish a harmonised framework for regulatory sandboxes and innovation hubs, alongside a regional strategy to promote financial inclusion.
Deeper financial markets needed
The BoU Governor stressed the need for deeper and more efficient financial markets to support investment, improve price discovery and strengthen monetary policy transmission.
He said the growing interest in financial instruments such as derivatives presents opportunities for managing risks linked to foreign exchange, interest rates and commodity prices.
“These instruments can sharpen risk management and market efficiency, but only where they are matched by strong regulatory oversight and market infrastructure,” he said.
He added that regional financial reforms should focus on harmonised market-conduct supervision and stronger consumer protection to ensure innovation supports stability.
Rising debt requires coordinated action
Atingi-Ego warned that increasing public debt levels in some EAC economies could threaten macroeconomic stability if not properly managed.
He said stronger cooperation between monetary and fiscal authorities was essential to maintain sustainable debt levels while preserving the independence of central banks.
“Such coordination is essential to keep debt on a sustainable path, anchor inflation expectations and preserve the policy space we will need to respond to future shocks,” he said.
He also encouraged Partner States to explore innovative approaches to strengthening external reserves, including domestic gold purchase programmes by central banks.
He said such initiatives could help diversify reserves and improve resilience against global financial volatility.
Digital finance key to financial inclusion
The Governor praised East Africa’s leadership in digital financial services, particularly mobile money, saying technology remains central to expanding access to affordable financial services.
“East Africa remains a global leader in digital financial services, particularly mobile money, and we must keep leveraging technology to widen access to affordable financial services for households, small businesses and underserved communities,” he said.
He said the EAC Cross-Border Payment System Masterplan would be critical in reducing transaction costs, improving financial inclusion and supporting economic empowerment across the region.
Commitment to East African Monetary Union
The Governor reaffirmed the region’s commitment to establishing the East African Monetary Union [EAMU], but called for an honest assessment of progress towards meeting agreed convergence criteria.
He said Partner States must address persistent gaps in inflation management, foreign reserves accumulation and other macroeconomic indicators if the region is to achieve its ambition of adopting a single currency by 2031.
“Our commitment to the Monetary Union is not in question — but a candid review shows that we are consistently falling short of the convergence criteria,” he said.
He urged countries to strengthen peer review mechanisms and develop binding national action plans supported by clear fiscal consolidation timelines and harmonised policy frameworks.
“Continued divergence from these criteria risks eroding the credibility of our shared vision of monetary and political integration,” he warned.
He commended the EAC Secretariat, technical working groups and central bank officials for their continued efforts towards strengthening monetary cooperation.
“Above all, let our work remain anchored in the greater goal we serve: the social and economic transformation of our region,” he said.
EAC Secretariat pushes for renewed EAMU commitment
Speaking at the same meeting, EAC Deputy Secretary General Annette Mutaawe Ssemuwemba said MAC plays a central role in advancing one of the most important pillars of regional integration.
“MAC plays a pivotal role in steering one of the EAC’s most important integration pillars,” Ssemuwemba said.
She said the 7th EAC Development Strategy [2026–2031] places renewed emphasis on accelerating the EAMU agenda by prioritising completion of outstanding legal and technical processes and supporting Partner States to implement convergence programmes.
Although progress towards the EAMU roadmap has been slower than expected, she reaffirmed the Secretariat’s commitment to resolving outstanding issues, including the establishment of the East African Monetary Institute.
“Partnership, consensus and shared responsibility have shaped the work of MAC. Let us remain guided by the vision of a prosperous, integrated, stable and resilient EAC through collaboration and mutual trust to strengthen our institutions, deepen integration and create more opportunities for our community,” she said.
Partner States reaffirm commitment
Governor of the Central Bank of Kenya [CBK] Kamau Thugge said Kenya remains committed to completing the regional integration process, noting that progress has been made in implementing decisions reached during the previous MAC meeting held in Mombasa in May 2025.
He said Kenya continues to meet convergence targets on inflation and foreign exchange reserves while pursuing fiscal consolidation measures aimed at reducing debt ratios to sustainable levels.
Meanwhile, Bank of Tanzania Governor Emmanuel M. Tutuba said Tanzania remains committed to accelerating regional integration and deepening trade within the EAC.
He said Tanzania has made progress in reducing its fiscal deficit towards meeting the 3 percent convergence criterion.
“The Tanzanian financial sector remains sound, stable and resilient to shocks. The central bank is implementing reforms aimed at strengthening commercial bank supervision and safeguarding financial stability,” Tutuba said.
“We remain committed to working with partners in achieving our shared aspirations. Together, we will build a stronger EAC community,” he added.
Other governors and representatives who spoke at the event that attracted hundreds of participants and the media came from the Central Banks of Burundi, Rwanda and, South Sudan, Somalia.
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