ARUSHA, Sept. 29 -- THE East African Community (EAC) is stepping up efforts to align fiscal and monetary policies as Partner States move towards establishing a single currency by 2031, with stronger budget discipline, harmonised tax systems and closer economic coordination emerging as critical requirements for the planned monetary union.

For the region, monetary integration is intended to deepen economic ties, facilitate cross-border trade and investment, reduce transaction costs and strengthen the ability of Partner States to respond collectively to economic shocks.

But achieving those benefits will require countries to narrow differences in inflation, fiscal deficits, debt levels, foreign-exchange reserves and monetary-policy framewor...