NAIROBI, Kenya, Sept 21 – The East African Community (EAC) has started the process of integrating capital markets across Partner States as part of preparations for the East African Monetary Union.

The EAC Capital Markets Sub-Committee held its first formal meeting since 2019 from September 15 to 17, bringing together CEOs and senior officials from securities exchanges, capital markets regulators and central securities depositories across EAC Partner States.

The meeting followed a directive by the 18th Meeting of the Sectoral Council on Finance and Economic Affairs to resume the sub-committee’s work.

The sub-committee endorsed updated terms of reference outlining its role in coordinating the integration of capital markets across the region.

The revised framework includes regulatory harmonisation, market development, new financial products and linking financial market infrastructure across EAC countries.

The sub-committee also agreed to develop regional business requirements to guide the creation of a capital markets connectivity framework, which is expected to make it easier for investors to conduct transactions across EAC countries.

The meeting also reviewed progress under earlier capital markets integration initiatives linked to preparations for establishing the East African Monetary Institute.

Capital Markets Authority Uganda Director of Research and Market Development Dickson Ssembuya said the resumption of the committee’s work would improve coordination among EAC capital markets.

“The last engagement of Chief Executives under this Sub-Committee was in 2019. Since then, integration efforts have continued, but without the regular coordination and oversight that this Committee was established to provide,” Ssembuya said.

EAC Director of Planning Aime Uwase said stronger coordination among regional institutions was important as the Community prepares for the East African Monetary Union.