The pros and cons of an East African Community (EAC) monetary union

There has been very vocal interest in regional integration, including monetary integration, in Africa over the decades since independence.

With Africa rapidly on the rise – home to seven of the world’s fastest growing economies – African leaders are looking to safeguard a future of sustained growth. A currency union, therefore, appears to be en vogue as (at least one part of) a solution.

However, the concept of a currency union is, perhaps rightly, perceived as inherently flawed. How can separate countries with widely differing economic performances and different languages be effectively tied to a common monetary policy and interest rate? The recent history of the European Union has also hardly been encouraging.

Read more: The pros and cons of EAC monetary union – African Business Magazine.