Tanzania has reaffirmed its commitment to joining the East African Community (EAC) Monetary Union as part of efforts to enhance regional economic integration, stability, and growth.

Speaking in Parliament, Deputy Minister for Foreign Affairs and East African Cooperation, Mr. Dennis Londo, emphasized that adopting a common currency would further integrate the economies of EAC member states. He made these remarks while responding to a question from Kinondoni MP Abbas Tarimba (CCM) regarding Tanzania’s stance on the resolution by EAC leaders to establish a shared currency.

The EAC countries had initially aimed to implement the monetary union by 2024 but have now extended the deadline to 2031. Mr. Londo explained that Tanzania had met most of the required conditions and had only one remaining criterion to fulfill before joining the union.

The conditions include maintaining an inflation rate below 8%, keeping the budget deficit under 3% of the national Gross Domestic Product (GDP), ensuring public debt levels remain below 50% of GDP, and maintaining foreign exchange reserves adequate for at least four and a half months of imports. These requirements are designed to ensure economic stability and sustainable fiscal policies.

In Parliament, Mr. Londo expressed confidence that Tanzania was on track to meet these criteria, highlighting the government’s dedication to fiscal discipline and structural reforms. He stressed that achieving these economic targets would enable Tanzania to join the monetary union soon.

Joining the EAC Monetary Union is expected to bring several advantages for Tanzania, including increased trade and investment with neighboring countries, a more stable economic environment, and the ease of transactions through a shared currency. The government sees regional integration as a crucial strategy for economic growth and poverty reduction.

As Tanzania continues working towards fulfilling the necessary conditions, its commitment to integrating into the broader East African economic framework remains strong. Mr. Londo also emphasized the importance of harmonizing policies to ensure the effective implementation of the proposed East African Common Currency Protocol.

He urged lawmakers to support these efforts, reinforcing the vision of a united and economically robust East Africa.