BIG STORY: Museveni Pushes for Faster East African Integration, Common Currency

President Yoweri Kaguta Museveni called for accelerated regional integration within the East African Community (EAC), emphasising the need for improved infrastructure, enhanced trade cooperation, and the fast-tracking of plans for a common currency to boost economic growth and prosperity across the region.

The President made the remarks during a meeting with the Secretary-General of the East African Community, Mr. Stephen Patrick Mbundi, and his delegation at State Lodge, Nakasero.

The meeting, which was also attended by the First Deputy Prime Minister and Minister for East African Community Affairs, Rt. Hon. Rebecca Alitwala Kadaga, focused on key issues affecting the regional bloc, including trade facilitation, infrastructure development, health, financing, staffing challenges within EAC institutions, and the broader agenda of regional integration.

President Museveni, who currently serves as chairperson of the East African Community, stressed the importance of strengthening cooperation among member states and ensuring the effective implementation of programmes aimed at improving the livelihoods of East Africans.

He challenged the East African Business Council to support rather than undermine the growth of the regional market.

“We should engage in a structural way and tell them that please stop misusing the member states to distort the growth of the East African market,” President Museveni said.

The President also reiterated his support for the development of integrated transport infrastructure across the region, particularly the rationalisation of transport systems to improve efficiency and reduce costs. He argued that heavy cargo and petroleum products should primarily be transported by railway, leaving roads for passenger traffic and lighter cargo.

“Now the infrastructure I totally support. We must rationalize the transport system. The railway transport should carry heavy goods and petroleum products, while roads remain for passengers and light cargo,” President Museveni said.

He directed the relevant transport authorities and EAC officials to work together to develop practical solutions for regional transport connectivity.

“The transport committee should meet and really concretize this. I totally support it. I agree. I will tell our minister of Transport, and the minister for East African Affairs here will coordinate them to meet and work out all these connections,” he added.

During the discussions, President Museveni also welcomed a proposal by the EAC Secretariat requiring non-member countries that export goods into the East African market to contribute financially to the Community. The President described the idea as innovative and worthy of consideration.

“These people who are selling things from here, why don’t they contribute? It’s fantastic. I had not thought about it, but I think it is a new idea and a very good idea,” he noted.

Rt. Hon. Kadaga highlighted the immense responsibility facing the EAC leadership, particularly under President Museveni’s chairmanship, noting that he is widely regarded as one of Africa’s foremost advocates of regional integration.

“We have a very heavy burden because you are the chair of the summit on this continent. You are well known as the champion of integration, so we have a bigger burden to deliver for the community,” Rt. Hon. Kadaga said.

She expressed optimism that significant progress could be achieved during President Museveni’s tenure, particularly regarding the remaining pillars of the integration agenda.

“I am really hoping that during your tenure we should be able to achieve at least the last two pillars, integration and monetary union,” she added.

A major highlight of the meeting was the discussion on the proposed East African Monetary Union, with Secretary General Mbundi urging President Museveni to engage regional central bank governors to expedite progress towards the establishment of a common currency.

According to Mr. Mbundi, delays in implementing the monetary union continue to affect businesses and ordinary citizens due to persistent exchange rate fluctuations among member states.

“Your Excellency, our citizens are really suffering because of fluctuations in currency. It is a big hindrance to business,” he said.

Mr. Mbundi proposed a phased approach to implementing the common currency, arguing that waiting for all eight member states to simultaneously meet convergence criteria could delay progress indefinitely.

“I wanted to propose that countries which are able should move ahead. Eight countries cannot converge at the same time. If we could start with three or four countries, then the others can join later. Otherwise, we are not doing a good service to the population on the issue of the monetary union,” he explained.

The Secretary General also expressed gratitude for the confidence shown in him by the EAC Summit, which unanimously endorsed his appointment to lead the regional bloc.

“I’m grateful for the confidence and trust the Summit bestowed upon me by unanimously endorsing my nomination as Secretary General of the East African Community. I wish to commit that I am ready to shoulder this obligation of steering our community to the destiny which the people of East Africa really wish,” Mr. Mbundi said.

He outlined several priority areas for his tenure, including strengthening climate resilience, food security, and renewable energy access across the region.

According to Mr. Mbundi, the Secretariat will focus on promoting climate-smart agricultural practices, reducing post-harvest losses, improving water resource management in the Lake Victoria Basin, and expanding access to clean and renewable energy sources.

“We are focusing on enhancing climate resilience in agriculture, climate-smart practices, and post-harvest loss management in order to enhance food security. We are also going to focus on promoting climate-resilient water resource management in the Lake Victoria Basin and scaling up access to renewable energy,” he said.

The meeting was also attended by the state minister for East African Community Affairs, Hon. James Magode Ikuya, and officials from the EAC Secretariat.