Uganda objects to Tanzania hosting the EAC central bank

Uganda has rejected a report by the East African Community verification team awarding Tanzania the right to host the East African Community Central Bank. According to NTV Uganda.

Uganda's First Deputy Prime Minister and Minister for EAC Affairs Rebecca Kadaga has accused the team of fraudulently awarding the EAC Central Bank to Tanzania rather than Uganda.

While all EAC member states support the establishment of the East African Monetary Institute (EAMI), which will eventually become the bloc's central bank, not all support the institute's location in Tanzania.

Uganda is not alone in its opposition, Kenya, Rwanda, and Burundi are also not enthusiastic about the idea.

Kenya and Uganda are questioning the verification process's objectivity.

"The EAC spent resources on a professional verification, and thus the outcome should be respected to avoid duplication, which overburdens taxpayers," the Tanzanian government said through its EAC representative, according to The Citizen newspaper.

On March this year, Tanzania's Finance Minister, Dr. Mwigulu Nchemba submitted a request at the EAC Verification Committee for Tanzania to host the East African Monetary Institute (EAMI).

The operationalization of the EAMI effectively sets the EAC on a journey towards the single currency by 2024 as envisaged in the East African Monetary Union Protocol.

In February 2021, the EAC Council of Ministers in its meeting in Arusha Tanzania, directed the Partner State that will host EAMI to cover office rent, office equipment, utilities and other support for the first two years.

The EAMI is a transitional mechanism to the East African Central Bank that will issue the single currency that is expected to be in place by the year 2024.