By KPC Reporter
East African Community finance ministers and senior economic officials have convened in Arusha, Tanzania, for high-level talks aimed at strengthening regional fiscal coordination, trade policy harmonisation and preparations for the East African Monetary Union.
The 18th Meeting of the Sectoral Council on Finance and Economic Affairs (SCFEA) and the 21st EAC Pre-Budget Consultations are taking place from May 11 to 15, 2026, bringing together ministers and cabinet secretaries responsible for finance across the region.
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The meetings are expected to deliberate on key economic priorities, including customs and trade reforms, budget alignment for the 2026/27 financial year, sustainable financing for the Community and implementation of the roadmap toward the East African Monetary Union (EAMU).
Opening the session, Albert A. Musisi, Chairperson of the Session of Senior Officials of the SCFEA and Uganda’s Commissioner for Macroeconomic Policy, urged Partner States to focus on action rather than prolonged discussions.
“The Summit emphasised timely implementation of decisions and directives rather than unending consultations,” said Dr. Musisi. “We must remain result-oriented and focused on practical implementation of regional commitments.”
On behalf of the EAC Secretariat, Aime Uwase said the region was meeting at a critical time as East African economies continue to navigate global and domestic economic pressures.
“These meetings come at a critical moment as the region pursues economic recovery, strengthens resilience to external shocks and deepens regional integration,” said Uwase, while commending progress made in several sectors.
A major focus of the meeting will be the review of Partner States’ Budget Policy Statements and Budget Framework Papers for the 2026/27 fiscal year. Delegates are expected to discuss revenue and expenditure priorities, fiscal deficit targets, debt management strategies and the possibility of harmonising the date for reading national budgets across the region.
The pre-budget consultations will also examine unresolved customs matters, including implementation of specific duty rates, review of the EAC Rules of Origin and application of the revised Common External Tariff.
In a move aimed at boosting regional manufacturing, the Sectoral Council will review findings of a study on glass and ceramic tiles produced within the EAC.
The recommendations seek to strengthen local value addition, reduce reliance on imports from outside the bloc and address non-tariff barriers affecting intra-regional trade.
On statistics and monetary integration, the Council will consider progress in harmonising regional statistics, including adoption of nine additional regional statistical guidelines, which would raise the total to 17.
Delegates will also assess progress toward implementation of the East African Monetary Union roadmap, including the establishment of four EAMU support institutions and the status of macroeconomic convergence among Partner States.
According to the EAC Secretariat, performance across member states remains mixed, particularly in areas such as fiscal deficit management, reserve cover and public debt levels.
The meetings are further expected to deliberate on implementation of the new EAC financing formula adopted during the 25th Ordinary Summit of Heads of State.
The formula, set to take effect on July 1, 2026, will see member contributions shared through a 50 percent equal contribution model and 50 percent assessed contribution mechanism.
Other agenda items include proposals allowing Partner States to remit annual contributions in local currencies, phasing out overdraft facilities and establishing a sub-committee on public financial management modernisation and harmonisation.
