Article 72. Scope of Co-operation
The Member States undertake to co-operate in monetary and financial matters in accordance with the approved PTA monetary harmonisation programme in order to establish monetary stability within the Common Market aimed at facilitating economic integration efforts and the attainment of sustainable economic development of the Common Market by:
(a) strengthening the clearing and payments system in order to promote the use of national currencies in the settlement of payments for all transactions among the Member States thereby economising on the use of foreign currency;
(b) taking measures that would facilitate trade and capital movement within the Common Market;
(c) the realisation of greater harmony in economic policies, particularly in fiscal and monetary policies, the management of the foreign sector and in the development policies of the Member States;
(d) the integration of the financial structures of the Member States; and
(e) the mobilisation of financial resources for the expansion of trade and development projects and programmes.
Article 73. Settlement of Payments
For the purposes of sub-paragraph (a) of Article 72 of this Treaty, the Member States undertake, until a common central bank is established, to settle all payments in respect of all transactions in goods and services conducted within the Common Market through the Clearing House.
Article 74. Unit of Account
1. There shall be a unit of account of the Common Market to be known as the Eastern and Southern Africa Currency Unit (ESACU) whose value shall be equal to one Special Drawing Right (SDR) of the International Monetary Fund or any other unit of account that may be determined by the Council from time to time on the recommendation of the Committee of Governors of Central Banks.
2. Each monetary authority shall communicate to the Clearing House the official exchange rate of its currency against its intervention currency or reference currency as the case may be.
3. Any change in the official exchange rate of the currency of a Member State shall be notified immediately by the monetary authority to the Clearing House.
4. All books of account of the Common Market and all monetary instruments issued by the Common Market shall be denominated in the unit of account of the Common Market.
Article 75. Establishment of a Payments Union
1. There shall be established a Payments Union among the Member States.
2. The Council shall adopt measures which would be required to be implemented in order to establish the Payments Union. For this purpose, the Member States agree to set up a reserve fund for the provision of assistance to the Member States which may experience difficulties regarding the settlement of their net debit balances in the Clearing House and general balance of payments.
Article 76. Monetary and Fiscal Policy Harmonisation
1. The Member States undertake to adopt collective policy measures in accordance with the monetary harmonisation programme which is designed to achieve a harmonised monetary and fiscal system in the Common Market.
2. For the purposes of paragraph 1 of this Article, the Member States agree to:
(a) remove all exchange restrictions on imports and exports within the Common Market;
(b) make necessary adjustments in their exchange rates towards free market rates in order to improve their balance of payments positions and enhance the level of their international reserves;
(c) adjust their fiscal policies and domestic credit to the government and private sector designed to ensure monetary stability and the achievement of sustained economic growth;
(d) liberalise their financial sectors by freeing and deregulating interest rates or their equivalent with a view to achieving positive real interest rates or their equivalent in order to promote savings for investment and to enhance competition and efficiency in the financial system; and
(e) harmonise their tax policies with a view to removing tax distortions affecting commodity and factor movements in order to bring about a more efficient allocation of resources within the Common Market.
Article 77. Establishment of Currency Convertibility
1. The Member States undertake to establish, at a time to be determined by the Council, currency convertibility which shall make their currencies convertible into one another.
2. For the purposes of paragraph 1 of this Article, the Member States shall abolish all restrictions on current transactions.
Article 78. Formation of an Exchange Rate Union
1. The Member States undertake to establish, at a time to be determined by the Council, an Exchange Rate Union.
2. The Member States agree to the immutable fixing of the exchange rates of their currencies within a band to be prescribed by the Council.
Article 79. Regional Macro-economic Co-ordination
1. The Member States undertake to co-ordinate their macro-economic policies and economic reform programmes with a view to promoting the economic and social balance of the Common Market and to develop a framework for macro-economic planning and programming.
2. The Member States undertake to evolve policies designed to improve the resource and production base of the economically weaker Member States in order to achieve balanced development within the Common Market.
Article 80. Banking and Capital Market Development
The Member States undertake to implement a region-wide capital market development programme to be determined by the Council and shall create a conducive environment for the movement of capital. To this end Member States shall:
(a) take steps to achieve wider monetarization of the region's economies under a liberalised market economy;
(b) establish national stock exchanges and an association of national stock exchanges to enable objectives to be pursued in a concerted and coordinated manner including promotional activities, training, standardisation and harmonisation of operational rules and regulations;
(c) establish a Common Market rating system of listed companies and an index of trading performance to facilitate the negotiation and sale of shares within the Common Market and also external to the Common Market;
(d) develop a region-wide network of national capital markets, with the purpose of facilitating the flow of information on national stock exchanges and their functioning, listed companies, availability of stocks, bonds, securities, treasury bills, notes, and other monetary instruments for the cross-border marketing of such instruments; and
(e) ensure adherence by their appropriate national authorities to harmonised stock trading systems, promotion of monetary instruments, and permission for residents of the Member States to acquire and negotiate monetary instruments.
Article 81. Capital Movement
The Member States shall, permit the free movement of capital within the Common Market and integrate their financial structures. In this regard, the Member States shall:
(a) ensure the unimpeded flow of capital within the Common Market through the removal of controls on the transfer of capital among the Member States in accordance with a timetable to be determined by the Council;
(b) ensure that the citizens of and persons resident in the Member States are allowed to acquire stocks, shares and other securities or to invest in enterprises in the territories of the other Member States; and
(c) encourage cross border trade in government securities such as treasury bills, development and loan stocks within the Common Market.
Article 82. Joint Project Financing
1. The Member States undertake to co-operate in financing projects jointly in each other's territory, especially those that facilitate regional integration.
2. The Member States undertake to co-operate in the mobilisation of foreign capital for the financing of national and regional projects.
Article 83. Safeguard Measures
The Council may approve measures designed to remedy any adverse effects a Member State may experience by reason of the implementation of the provisions of this Chapter, provided that such a Member State shall furnish to the Council, proof that it has taken all reasonable steps to overcome the difficulties, and that such measures are applied on a non-discriminatory basis.
Chapter Eleven. Co-operation In the Development of Transport and Communications
Article 84. Common Transport and Communication Policies
The Member States undertake to evolve coordinated and complementary transport and communications policies, to improve and expand the existing links and establish new ones as a means of furthering the physical cohesion of the Member States, so as to facilitate movement of inter-State traffic and to promote greater movement of persons, goods and services within the Common Market. To this end the Member States shall take all necessary steps to:
(a) maintain, upgrade, and rehabilitate the roads, railways, airports and harbours in their territories;
(b) review and redesign their intermodal transport systems and develop new inter-territorial routes of the Common Market to link and to cater for the types of goods and services produced in the Member States;
(c) maintain, expand and upgrade communications and meteorological facilities that would enhance and improve contacts between persons and businessmen in the Member States and promote the full exploitation of the market and investment opportunities created by the Common Market;
(d) grant special treatment to landlocked and island Member States in respect of the application of the provisions of this Chapter; and
(e) provide security and protection to transport systems to ensure the smooth movement of goods and persons within the Common Market.
Article 85. Roads and Road Transport
The Member States shall:
(a) take measures to ratify or accede to international Conventions on Road Traffic and Road Signs and Signals, and take such steps as may be necessary to implement these Conventions;
(b) harmonize the provisions of their laws concerning the equipment for and markings of vehicles used for inter-State transport within the Common Market;
(c) adopt common standards and regulations for the issuance of driving licences;
(d) harmonize and simplify formalities and documents required for the vehicles and cargo used in inter-State transport within the Common Market;
(e) adopt minimum requirements for the insurance of goods and vehicles; (f) adopt common regulations governing speed limits on urban roads and highways;
(g) adopt common regulations prescribing minimum safety requirements for the transport of dangerous substances;
(h) establish common measures for the facilitation of road transit traffic;
(i) harmonize rules and regulations concerning special transport requiring escort;
(j) adopt common rules and regulations governing the dimensions, technical requirements, gross weight and load per axle of vehicles used in inter-State trunk roads within the Common Market;
(k) construct inter-State trunk roads linking the Member States to common standards of design and maintain existing road networks to such standards as will enable the carriers of other Member States to operate to and from their territories in a reasonably efficient manner;
(l) maintain, rehabilitate, upgrade and reconstruct the inter-State trunk road network;
(m) ensure that inter-State roads once rehabilitated will not disintegrate and for this purpose shall make adequate provisions for funds and maintenance personnel;
(n) adopt a coordinated approach in the implementation of inter-State trunk road projects;
(o) agree on common policies for the manufacture and the maintenance of road transport equipment;
(p) establish common road design and construction standards for the inter-State trunk roads that would promote the use as much as possible of local materials and resources;
(q) adopt common procedures for the harmonisation of road transit charges;
(r) agree on measures for the gradual reduction and eventual elimination of all nonphysical barriers to road transport within the Common Market;
(s) ensure that common carriers from other Member States have the same opportunities and facilities as common carriers in their territories in the undertaking of inter-State transport operations;
(t) ensure, as far as practicable, that transport rates of common carriers applicable within the Member States for inter-State transport of passengers and goods to and from other Member States shall not be less favourable than similar transport rates applicable within their own territories for similar transport;
(u) ensure that the treatment of motor transport operators engaged in inter-State transport within the Common Market from other Member States is not less favourable than that accorded to the operators of similar transport from their own territories; and
(v) make road transport efficient and cost effective by promoting competition and introducing regulatory framework to facilitate the road haulage industry operations.
Article 86. Railways and Rail Transport
1. The Member States agree to the establishment of an efficient and coordinated railway services which would interlink Member States within the Common Market, the connection of different railway gauges and the construction of required additional railway links.
2. The Member States in whose territories railways are operated shall, in particular:
(a) adopt common policies for the development of railways and railway transport in the Common Market;
(b) undertake to make their railways more efficient and competitive through, inter-alia, autonomous management;
(c) adopt common safety rules, regulations and requirements with regard to signs, signals, rolling stock and the transport of dangerous substances;
(d) harmonize their legal and administrative requirements for inter-State railway transport within the Common Market with a view to eliminating related barriers and inconsistencies that exist among themselves;
(e) adopt measures for the facilitation, harmonisation and rationalisation of railway transport within the Common Market;
(f) harmonize and simplify documents required for inter-State railway transport among themselves;
(g) harmonize procedures with respect to the packaging, marking and loading of goods and wagons for inter-State railway transport among themselves;
(h) agree to charge non-discriminatory tariffs in respect of goods from their territories and goods from other Member States, except where their goods enjoy domestic transport subsidies, and apply the same rules and regulations in respect of railway transport among themselves without discrimination;
(i) consult each other on proposed measures that might affect the railway transport of other Member States;
(j) integrate the operations of their railway administrations including the synchronization of train schedules and the operations of unit trains;
(k) establish common standards for the construction and maintenance of railway facilities;
(l) agree on common policies for the manufacture of railway transport equipment and railway facilities;
(m) agree to allocate adequate space for the storage of goods from each other within their goods sheds;
(n) take measures to facilitate the transfer of railway wagons used for inter-State railway transport within the Common Market from one railway network to another;
(o) facilitate the deployment of railway rolling stock for the conveyance of goods to and from the territories of each other without discrimination;
(p) endeavour to maintain the existing physical facilities of their railways to such standards as will enable other Member States to operate their own systems within the Common market in a reasonably efficient manner; and
(q) provide good quality railway transport services among the Member States on a nondiscriminatory basis.
Article 87. Air Transport
1. In order to promote the provision of better and efficient air transport, the Member States shall promote the establishment of joint ventures for co-operation in the use of equipment, in the pooling of aircraft maintenance and training facilities, in the acquisition and use of fuel and spare parts, in the acquisition and use of fuel and spare parts, in insurance schemes, in the co-ordination of flight schedules and the improvement of managerial techniques and skills.
2. The Member States shall take necessary steps to promote the establishment of joint air services operations by their designated airlines on intercontinental routes and the joint use by them of wide body aircraft as steps towards the eventual establishment of a Common Market airline.
3. The Member States shall in particular:
(a) adopt common policies for the development of air transport in the Common Market in collaboration with other relevant international organisations including the African Civil Aviation Commission, the African Airlines Association, the International Air Transport Association and the International Civil Aviation Organisation;
(b) undertake to make air transport services efficient and profitable through, inter-alia, autonomous management;
(c) liberalise the granting of air traffic rights for passengers and cargo operations with a view to increasing the efficiency and profitability of their airlines;
(d) harmonise civil aviation rules and regulations by implementing the provisions of the Chicago Convention on International Civil Aviation, with particular reference to Annex 9 thereof;
(e) establish common measures for the facilitation of passenger and cargo air services in the Common Market;
(f) co-ordinate the flight schedules of their designated airlines;
(g) consider ways to develop, maintain and co-ordinate in common, their navigational, communications and meteorological facilities for the provision of safe air navigation and the joint management of their air space;
(h) encourage the joint use of maintenance and overhaul facilities and other services for aircraft, ground handling equipment and other facilities;
(i) agree to take common measures for the control and protection of the Common Market air space;
(j) agree to charge the same rates and apply the same rules and regulations relating to scheduled air transport services among themselves;
(k) take measures directed towards aircraft standardization including co-operation in the preparation of technical specifications for the type of aircraft to be operated; and
(l) coordinate measures and cooperate in the maintenance of the high security of air services operations.
Article 88. Maritime Transport and Ports
The Member States shall:
(a) promote the co-ordination and harmonization of their maritime transport policies and the eventual establishment of a common maritime transport policy;
(b) promote the development of efficient and profitable sea port services;
(c) make rational use of existing port installations;
(d) in the case of those that are coastal Member States, co-operate with those that are landlocked Member States in maritime transport so as to facilitate the trade of such landlocked Member States;
(e) take measures to ratify or accede to International Conventions on maritime transport ;
(f) establish a harmonious traffic organisation system for the optimal use of maritime transport services;
(g) co-operate in the elaboration and application of measures to facilitate the arrival, stay and departure of vessels;
(h) promote co-operation among their port authorities in the management and operations of their ports and maritime transport so as to facilitate the efficient movement of traffic between their territories;
(i) agree to charge non-discriminatory tariffs in respect of goods from their territories and goods from other Member States, except where their goods enjoy domestic transport subsidies, and apply the same rules and regulations in respect of maritime transport among themselves without discrimination;
(j) agree to allocate space on board their ships for goods consigned to or from the territories of other Member States;
(k) install and maintain efficient cargo handling equipment, cargo storage facilities and general operations and train related manpower;
(l) agree to allocate adequate space for the storage of goods traded among themselves within their storage facilities;
(m) coordinate measures with respect to, and co-operate in the maintenance of, the safety of maritime transport services.
(n) provide adequate facilities with good communication systems that would receive and respond to signals promptly;
(o) inter-link their national communication systems so as to identify polluted points in oceans for concerted regional marine pollution control;
(p) encourage their respective national shipping lines to form sub-regional associations;
(q) agree to provide cargo to vessels of the Member States in priority to other vessels and to cooperate in establishing a policy favouring the vessels of the Member States with regard to priority berthing and other port services and facilities; and
(r) review their national maritime legislations in accordance with the existing international maritime conventions.
Article 89. Inland Waterway Transport
The Member States which have common navigable inland waterways shall:
(a) adopt, harmonize and simplify rules, regulations and administrative procedures governing their inter-State inland waterway transport;
(b) install and maintain efficient cargo handling equipment, cargo storage facilities and general operations and train related manpower resources;
(c) use, where feasible, joint maintenance facilities;
(d) harmonise tariffs structure for their inter-State inland waterway transport;
(e) adopt common rules to govern the packaging, marking, loading and other procedures for their inter-State inland waterway transport;
(f) agree to charge the same tariffs structure in respect of goods from their territories and goods from other Member States except where their goods enjoy domestic transport subsidies, and apply the same rules and regulations in respect of inland waterway transport among themselves without discrimination;
(g) agree to provide space without discrimination on board vessels registered in their territories for goods consigned to and from the territories of other Member States;
(h) wherever possible, promote co-operation among themselves by undertaking joint ventures in inland waterway transport including the establishment of joint shipping services; and
(i) coordinate measures with respect to, and cooperate in the maintenance of, safety in inland water transport services including the provision and maintenance of the right communication equipment to receive distress position promptly.