Just as the eurozone is being threatened by faltering economies, East Africa is moving closer to its own monetary union. But some are asking if it's ready for a common currency, and in light of Europe's troubles, if it should even have one. Under an ambitious plan, Kenya, Uganda, Tanzania, Rwanda and Burundi are targeting 2012 for adopting a common currency.
Having already established a customs union in 2005 and a common market in 2010, the five member-states of the East African Community (EAC) hope that the economic integration will boost regional trade, decrease exchange-rate volatility, and attract foreign investors.
Dr Richard Sezibera, the recently-appointed Secretary General of the EAC, says: "The financial, fiscal and monetary integration is good for our region.
"It will help our region improve its competitiveness, deal with volatility that has been a problem in our region, lead to an easing of business -- including easier capital flows from within the region -- and make the financial integration much easier.
"This is beneficial both to business but also to the average East African."
The promise of a better financial outlook in an integrated market of more than 130 million people has not gone unnoticed by the world's strongest economies.
Earlier this week, China became the latest state to appoint a representative to the EAC secretariat, following the example of countries such as the United States, the United Kingdom and France. (read more)
