Jul 31, 2012

East African monetary integration with M-PESA?

Lars Christensen has written an article titled, “Forget about East African Monetary Union – let the M-PESA do the job”. Lars argues that  that many of the advantages of monetary union could easily be achieved by enhancing the use of M-PESA style payment systems across the Eastern Africa Community (Kenya, Tanzania, Uganda, Rwanda and Burundi).

M-PESA style payments system would reduce the transaction costs of cross-border transactions, and it would avoid the problems associated with lack of economic and political integration.

If you have the time, you should check out Lars Christensen's article (link here).