Lusaka-based Common Market for Eastern and Southern Africa (COMESA) secretariat has engaged experts from central banks of Zambia, Kenya and Uganda to undertake a study on facilitating the establishment of the COMESA Monetary Union.

According to a newsletter released from the secretariat on Friday, the monetary union involving the use of one common currency in the region was set to be launched in the year 2018. There has been, however, views among bank governors that the union ought to be constituted much earlier so as to facilitate greater integration hence the consultancy on the union.

Results of the study will be considered at the 11th meeting of the COMESA committee of Central Bank Governors, which will be held in Madagascar in October this year.

The COMESA monetary union is a building block to the African Monetary Union that is planned to be in place by the year 2021.

Upon establishment, the monetary union will eliminate risks in the foreign exchange market, lower transaction costs in cross- border business and lead to increased trade and investment. The union will also assist in overcoming obstacles created by relatively small and individual domestic markets.

Comprising 20 member nations, COMESA is one of Africa's largest economic integration grouping with a total population of 385 million. Free Trade Area (FTA) was launched in 2000 within the organization with a membership of 11 and the COMESA is scheduled to set up Customs Union by 2008 to implement common external tariffs.

Source: Xinhua