East African Community in the context of "African Monetary Union"

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⭐ Core Definition: East African Community

The East African Community (EAC) is an intergovernmental organisation in East Africa. The EAC's membership consists of eight states: Democratic Republic of the Congo, the Federal Republic of Somalia, the Republics of Burundi, Kenya, Rwanda, South Sudan, Uganda, and Tanzania. William Ruto, the president of Kenya, is the current EAC chairman. The organisation was founded in 1967, collapsed in 1977, and was revived on 7 July 2000. The main objective of the EAC is to foster regional economic integration.

In 2008, after negotiations with the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), the EAC agreed to an expanded free trade area including the member states of all three organisations. The EAC is an integral part of the African Economic Community.

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👉 East African Community in the context of African Monetary Union

The African Monetary Union (AMU) is the proposed creation of an economic and monetary union for the countries of the African Union, administered by the African Central Bank. Such a union would call for the creation of a new unified currency, similar to the euro; the hypothetical currency is sometimes referred to as the afro or afriq. The single African currency is to be composed of currency units made up of regional union reserve bank currency units of which are made up of country specific currencies (The Arab Maghreb Union (AMU) - Northern Afriq, Southern African Development Community (SADC) - Southern Afriq, Economic Community of West African States (ECOWAS) - Western Afriq or ECO, East African Community (EAC) - Eastern Afriq, Common Market for Eastern and Southern Africa (COMESA) - Central Afriq etc.).

The Abuja Treaty, an international agreement signed on June 3, 1991, in Abuja, Nigeria, created the African Economic Community, and called for an African Central Bank to follow by 2028. As of 2019, the plan is to establish an African Economic Community with a single currency by 2023.

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East African Community in the context of Free trade area

A free trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and to increase trade of goods and services with each other. If natural persons are also free to move between the countries, in addition to a free trade agreement, it would also be considered an open border. It can be considered the second stage of economic integration.

Customs unions are a special type of free trade area. All such areas have internal arrangements which parties conclude in order to liberalize and facilitate trade among themselves. The crucial difference between customs unions and free trade areas is their approach to third parties. While a customs union requires all parties to establish and maintain identical external tariffs with regard to trade with non-parties, parties to a free trade area are not subject to this requirement. Instead, they may establish and maintain whatever tariff regime applying to imports from non-parties as deemed necessary. In a free trade area without harmonized external tariffs, to eliminate the risk of trade deflection, parties will adopt a system of preferential rules of origin.

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East African Community in the context of Kivu conflict

The Kivu conflict is an umbrella term for a series of protracted armed conflicts in the North Kivu and South Kivu provinces in the eastern Democratic Republic of the Congo which have occurred since the end of the Second Congo War. Including neighboring Ituri province, there are more than 120 different armed groups active in the eastern Democratic Republic of Congo. Currently, some of the most active rebel groups include the Allied Democratic Forces, the Cooperative for the Development of the Congo, the March 23 Movement, and many local Mai Mai militias. In addition to armed groups and the governmental FARDC troops, a number of national, regional and international forces have intervened militarily in the conflict, including the United Nations force known as MONUSCO, the militaries of Uganda and Burundi, and a force from the East African Community known as the East African Community Regional Force. The Kivu region is thus regarded as a key geopolitical arena, where local armed groups intersect with broader regional rivalries and international strategic interests. Analysts note that competition over natural resources, cross-border alliances, and external interventions have transformed the conflict from a purely domestic issue into a wider geopolitical struggle.

The conflict began in 2004 in the eastern Congo as an armed conflict between the military of the Democratic Republic of the Congo (FARDC) and the Hutu Power group Democratic Forces for the Liberation of Rwanda (FDLR) in the Democratic Republic of the Congo. It has broadly consisted of three phases, the third of which is an ongoing conflict. Prior to March 2009, the main combatant group against the FARDC was the National Congress for the Defence of the People (CNDP). Following the cessation of hostilities between these two forces, rebel Tutsi forces, formerly under the command of Laurent Nkunda, became the dominant opposition to the government forces.

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East African Community in the context of Regional integration

Regional Integration is a process in which neighboring countries enter into an agreement in order to upgrade cooperation through common institutions and rules. The objectives of the agreement could range from economic to political to environmental, although it has typically taken the form of a political economy initiative where commercial interests are the focus for achieving broader socio-political and security objectives, as defined by national governments. Regional integration has been organized either via supranational institutional structures or through intergovernmental decision-making, or a combination of both.

Past efforts at regional integration have often focused on removing barriers to free trade in the region, increasing the free movement of people, labour, goods, and capital across national borders, reducing the possibility of regional armed conflict (for example, through Confidence and Security-Building Measures), and adopting cohesive regional stances on policy issues, such as the environment, climate change and migration.

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East African Community in the context of East African Community Regional Force

The East African Community Regional Force (EACRF) sometimes called the (EAC Force) or East African Regional Force is a regional peacekeeping force from the East African Community (EAC) deployed to the Democratic Republic of the Congo (DRC) in November 2022 to help restore peace and stability in its eastern region. The EACRF deployment was in response to rebel violence in the eastern DRC, specifically due to a major offensive from rebel group M23. Its army is composed out of troops from Burundi, Kenya, South Sudan and Uganda.

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East African Community in the context of East African Federation

The East African Federation (Swahili: Shirikisho la Afrika Mashariki) is a proposed federal sovereign state consisting of the eight member states of East African Community in the African Great Lakes region – Burundi, the Democratic Republic of the Congo, Kenya, Rwanda, Somalia, South Sudan, Tanzania and Uganda.

The idea of this federation has existed since the early 1960s but has not yet come to fruition for several reasons. Though the federation has not yet been established, many steps have been taken to advance this goal. Institutions and governing bodies already exist for the eventual union of these nations, with representatives from all of the related nations working together towards this common goal. A voluntary confederation will be formed before a full political federation is established.

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East African Community in the context of Shilling

The shilling is a historical coin, and the name of a unit of modern currencies formerly used in the United Kingdom, Australia, New Zealand, other British Commonwealth countries and Ireland, where they were generally equivalent to 12 pence or one-twentieth of a pound before being phased out during the 1960s and 1970s.

Currently the shilling is used as unit of account in five East African countries: Kenya, Tanzania, Uganda, Somalia and (the de facto country of) Somaliland. Looking forward, the East African Community plans to introduce a common currency, the East African shilling.

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