Advancing the East African Monetary Union: Institutional Reforms Financial Integrity and Regional Security

Abstract

The East African Community's (EAC) pursuit of a Monetary Union by 2031 presents a strategic opportunity to deepen regional integration, strengthen economic resilience and enhance competitiveness. Achieving this vision requires robust regional institutions, stronger macroeconomic coordination and effective compliance mechanisms. Addressing illicit financial flows, harmonising financial regulations and accelerating the adoption of the Pan-African Payment and Settlement System (PAPSS) will improve financial integrity, facilitate cross-border trade and reduce reliance on external currencies. Greater investment in digital financial infrastructure, cybersecurity and policy coordination will further support integration. Beyond economic benefits, monetary integration can strengthen regional peace and security by enhancing financial transparency, disrupting transnational crime and promoting economic interdependence. By implementing these reforms, the EAC can build a credible, resilient and globally competitive Monetary Union by 2031.