Monetary union in the East African Community (EAMU) needs to be seen in a wider context of EAC integration. Rwanda has much to gain from freer trade with her neighbours, investment in regional infrastructure, and access to a larger market for goods and services. If these were to be jeopardized by a failure to join EAMU--assuming it goes ahead—then there would no doubt be a net loss for Rwanda. But monetary union itself is unlikely to be very positive, and indeed may have negative consequences for Rwanda in some circumstances. The gains derive from the reduction of transactions costs from the use of a common currency within the EAC, as well as the possibility a regional central bank would deliver a more stable currency than national central banks.

It is a well recognized fact that East Africa’s regional integration agenda is now entering a new phase of implementation fueled by new measures involving a number of stakeholders. Among them is a not-for-profit organization known as TradeMark Africa (TMA) whose vision is to create “a united East Africa with flourishing trade, strong investment and less poverty’’. It focuses on three main themes to support regional integration and trade competitiveness.

Rwandan policy makers view the East African Community (EAC) as a regional economic block that offers its rapidly growing economy access to new markets and an opportunity to reduce the disadvantages of being landlocked. The search for better economic prospects via regional integration that Rwanda is seeking is captured in the country’s Vision 2020. In this road map, Rwanda seeks the potential advantages that regional and international economic integration brings to its economy as a key pillar of pursuing socio-economic transformation.