Finance Ministers and senior economic policymakers from the East African Community (EAC) Partner States have agreed on a coordinated regional approach to budgeting, tax harmonisation and economic integration during the 18th Meeting of the Sectoral Council on Finance and Economic Affairs (SCFEA) held in Arusha, Tanzania this week (May 11-15, 2026)
The meeting was chaired by Uganda’s Acting Minister of Finance, Planning and Economic Development, Dr Ramathan Ggoobi, who called for stronger implementation of regional commitments to deliver tangible economic benefits to citizens across East Africa.
The Council adopted a common regional budget theme for FY2026/27: “Deepening Regional Integration and Economic Resilience through Improved Regional Security, Domestic Revenue Mobilisation and Digital Transformation for Inclusive Growth.”
The Ministers also agreed that all EAC Partner States will read their national budgets on June 11, 2026 as part of efforts to strengthen regional fiscal coordination and macroeconomic convergence.
The meeting reviewed the economic outlook of the region, with Partner States reporting continued economic recovery and resilience, despite global uncertainties.
Uganda reported economic growth of 6.7 percent in the first half of FY2025/26, up from 5.8 percent in the same period the previous year, supported by strong performance in agriculture, industry and services.
The meeting reviewed progress on harmonisation of domestic taxes and implementation of directives aimed at removing inconsistencies affecting trade within the Community.
Partner States also reported progress in aligning excise duty frameworks and treatment of locally produced goods in line with EAC Customs Union commitments.
Ministers reviewed progress towards macroeconomic convergence targets, including maintaining inflation below 8 percent, fiscal deficits below 3 percent of GDP and foreign exchange reserves equivalent to at least 4.5 months of imports.
The meeting noted that several Partner States, including Uganda, Tanzania and Rwanda, have maintained inflation within agreed convergence thresholds, reflecting prudent macroeconomic management across the region.
In his remarks, Dr Ggoobi emphasized the need for the region to move from declarations to practical implementation, noting that sustainable financing, stronger institutional capacity and effective coordination are critical to the success of regional integration.
He observed that citizens expect concrete benefits from the EAC, including increased trade, jobs, investment and improved livelihoods.He also called for accelerated implementation of agreed regional commitments.
The Ministers also discussed sustainable financing of the EAC and called for accelerated implementation of agreed reforms to ensure predictable and equitable funding of regional institutions.
In addition, the Council considered measures to strengthen public financial management systems across the region, including harmonisation of fiscal frameworks, treasury systems, commitment controls and budget credibility mechanisms to support economic stability and investor confidence.
The meeting was attended by delegations from EAC Partner States led by Ministers of Finance and Permanent Secretaries responsible for Finance and Economic Planning, alongside officials from the EAC Secretariat, as part of ongoing efforts to deepen regional integration, strengthen economic resilience and accelerate implementation of the East African Community agenda across the region.