High Level Task Force to negotiate monetary union protocol meets 26-30 April 2011 in Mwanza, Tanzania
ARUSHA, Tanzania, April 22, 2011/African Press Organization (APO)/ — The third meeting of the High Level Task Force (HLTF) to negotiate the EAMU Protocol is taking place from 26 to 30 April 2011 at the Gold Crest Hotel in Mwanza, Tanzania. The meeting has been convened in accordance with the calendar of activities of EAC for the period of January to June 2011.
The HLTF, constituting senior officials from the Partner States’ Ministries of Finance, Planning and Economic Development, East African Community Affairs, as well as Central Bank, Capital Markets Authorities, Insurance and Pensions Regulatory Agencies, and National Statistics Offices, is expected to among others, consider the Provisions of the draft Protocol in four working groups namely: Macroeconomic; Statistics; Financial Sector; and Payment and Settlement System.
The inaugural meeting of the High Level Task Force (HLTF) to negotiate the East African Monetary Union (EAMU) Protocol was held from 17 to 21 January 2011 at Mt. Meru Hotel in Arusha, Tanzania. The second Meeting of the HLTF was held in Bujumbura, Burundi from 28 February to 4 March 2011.
The second HLTF meeting reviewed progress made since the first HLTF meeting and among others considered the structure of the proposed East African Community Monetary Union (EACMU) Protocol. The model Protocol that had been developed during the Study on the Establishment of the EAC Monetary Union was reviewed and a new structure developed based on the matrix of issues to be negotiated under the following guidelines: Articles 5 which sets out the objectives of the Community; and Article 151 of the Treaty, which mandates Partner States to conclude Protocols in areas of co-operation; Articles 82-86 (Chapter Fourteen) of the Treaty which defines the areas of cooperation and harmonization in monetary and financial matters; the need to have a comprehensive and self-executing EAC Monetary Union Protocol; the need to cross-reference with the already existing Protocols and finally; logical flow and clustering provisions based on homogeneity of content.
The second HLTF meeting also finalised and adopted a matrix of issues to be negotiated in the different areas through the four working groups..
The second HLTF considered the draft ToRs for EAC Macroeconomic convergence criteria given that the Macroeconomic convergence criteria will be part of the EAC Monetary Union Protocol and, therefore, advised that the study to review the EAC Macroeconomic convergence criteria needed to be undertaken urgently. Since the Sectoral Council on EAC Monetary Union is scheduled to meet in August, 2011 and given the urgency of the study, the Secretariat presented the ToRs to the 22nd Ordinary Council of Ministers that met in Arusha from 11-15 April 2011 for consideration. The Council adopted the Terms of Reference for the Study on the Review of the EAC Macro-Economic Convergence Criteria. Accordingly, the study is ready to be undertaken and funds have been earmarked and provided for in the EAC Budget for the Financial Year 2011/12.
The second HLTF had also recommended that the Secretariat develops a strategy to sensitize the East Africans on the EAC Monetary Union Process and prepares the necessary arrangements to facilitate the HLTF to share experiences with other Regional Economic Communities that are implementing Monetary Union as this would enrich the EACMU Protocol. The Secretariat is still mobilizing resources to facilitate both activities.
Following the establishment of the EAC Customs Union in 2005 and the signing of the EAC Common Market Protocol in November 2009 that entered into force on July 1, 2010; the next most important stage in the East African integration process is the Monetary Union. The EAC Heads of State have directed that the East African Monetary Union be in place by 2012.
SOURCE
East African Community (EAC)
