By Vivienne Russell | 6 November 2013

A two-year project to co-ordinate and harmonise public financial management and standards across East Africa has been launched in the region as part of moves towards a single currency.

Backed with $1m in World Bank support, the five-nation East African Community project will reform accounting practices, oversight and public procurement with the aim of helping the region achieve its goal of monetary union. Tanzania, Kenya, Uganda, Burundi and Rwanda are the constituent members of the EAC.

The project was launched at the EAC’s headquarters in Arusha, Tanzania, on Monday by EAC deputy secretary general Enos Bukuku.

Bukuku said that transparent public financial management was a critical aspect of a robust fiscal regime, which was vital to achieving monetary union.

He also noted that, currently, EAC states had varying levels of public financial management structures and different performance levels.

The project will aim to overcome these obstacles by working towards international public-sector accounting and auditing standards. It will also promote mutual recognition between partner states’ accountancy bodies, allowing finance professionals in the region to move easily across borders. 

Regional procurement legislation is also being developed, and there will be support for public accounts committees in the EAC nations to help them develop common good practice guidelines.

Bukuku thanked the World Bank for its support, saying: ‘This is indeed a positive gesture worth commending by the people of East Africa.’

The project is being co-ordinated by Godfrey Magadu, senior accountant at the EAC secretariat. He said the secretariat would work closely with the governments of partner state and other stakeholders to agree on harmonised standards. Technical support to implement agreed standards will also be provided.