The European Union has been a remarkable achievement. Numerous different countries with differing cultures and languages have managed to overcome their traditional rivalries and petty squabbles and come together to achieve a high level of co-operation. The co-operation between European countries has been driven not by altruism but by the enormous economic benefits which have been gained.
East Africa is going through a similar process of trying to form a common market with a single currency. The financial benefits which each country stands to gain are large, but the inter-country rivalries and distrust – often well founded – need to be overcome before the proposals can advance. Countries are currently expressing their reluctance about sharing their confidential financial details with other countries.
One of the big risks of an East African monetary union is that significant financial problems in any one member state will expose all of the other members states to financial shocks. The protectionist monetary policies currently used by the countries will no longer be available. The target date for the single currency is currently 2015, although advisers from the European Union predict that it will take a little longer.