The EAC has been carrying out comprehensive economic reforms since the 1990s in order to stimulate the growth of the private sector. One such reform has been the gradual liberalization of financial sectors and capital account mobility in order to enhance macroeconomic harmonization. Consequently, EAC member States have moved towards adopting more flexible exchange rate mechanisms. Moreover, macroeconomic policy convergence is mandated by article 83 and 84 of the Treaty establishing the EAC, which specifies the framework for macroeconomic coordination and monetary fiscal policy harmonization within the EAC.

The Protocol on the Establishment of the EAC Common Market requires member States to pursue macroeconomic policy convergence to fully benefit from a Common Market. The free movement of capital has therefore been advanced in the Protocol, which states that the harmonization in other areas of cooperation, including investment promotion and private sector development, needs to be enacted. With regard to the investment climate, the EAC Secretariat recently finished implementing the components of the Financial Sector Development and the Regionalization Project for Africa between the EAC and the World Bank on Investment Climate Programme.

The EAC is in the preparatory stages of establishing an EAC Monetary Union. In November 2013, the Heads of States and Government signed a Protocol on the Establishment of the East African Community Monetary Union. The critical areas of harmonization include, monetary and exchange rate policy harmonization; statistic harmonization; fiscal policy coordination and harmonization; financial market coordination; banking supervision and financial stability; harmonization of payments and settlement systems; and cohesive accounting and financial standards. EAC also made the decision to establish the East African Monetary Institute and the East African Central Bank to fulfil these goals.[1]

The free movement of persons in EAC can be traced back to the Treaty for East African Cooperation between Kenya, Uganda and United Republic of Tanzania from 1967, which ensured the free movement of persons within the region as one of the key cooperation elements. Member States adopted measures to achieve the free movement of persons, labour and services, and the right of establishment and residence of their citizens in the EAC region under article 104 of the Treaty Establishing EAC (1999).[1] The official launch of the EAC passport followed in 1999 and is presently operational for EAC citizens to travel freely in the EAC region for a period of six months. Plans to have it formally adopted as an international travel document are ongoing.[2]

Migration, in the context of a Common Market, is reflected under article 104 of the Treaty Establishing EAC and in article 5 of the Protocol on the Establishment of the EAC Common Market that was adopted in 2009. The Protocol states the right of cross-border movement of persons; the adaption of integrated border management; the removal of restrictions on movement of labour and services; and the right of establishment and residence.[3] Furthermore, the harmonization of labour policies for the purposes of guaranteeing free movement of labour, as stated in article 12 of the Protocol, provides that member States harmonize labour policies, laws, and programmes to enable the free movement of labour within the EAC region.[4]

Under article 124 of the Treaty Establishing EAC, member States agreed that peace and security are prerequisites to social and economic development within the Community and vital to the achievement of the objectives of the Community. As a result, a Peace and Security Strategy was adopted in November 2006.[1] Subsequently, the EAC adopted the Protocol on Peace and Security as well as the EAC Conflict Prevention, Management and Resolution Mechanism in January 2012 at the EAC joint meeting of the sectoral councils on Cooperation in Defence, Inter-state Security and Foreign Policy Coordination. The EAC Peace and Security Protocol identified over 20 objectives for fostering regional peace and security, these include, combating terrorism and piracy; peace support operations; prevention of genocide; disaster management and crisis response; management of refugees; control of proliferation of small arms and light weapons; and combating transnational and cross-border crimes.[2] The EAC Conflict Prevention, Management and Resolution Mechanism also include initiatives for the prevention of conflicts where early warning systems are an integral part of the peace and security workings of EAC.

Moreover, EAC has, together with the European Union, Intergovernmental Authority on Development (IGAD), COMESA and the Indian Ocean Commission, established a regional action plan against piracy to ensure regional maritime security.[3]