For the East African Community, a common currency makes sense, especially for Uganda and Kenya. Both countries are net importers, but there is an imbalance between them. Kenya is the dominant regional exporter, while Uganda is the dominant regional importer. This means that relative to one another, the Kenyan shilling consistently strengthens against the Ugandan shilling, making Kenyan goods more expensive in Uganda. The East Africa Community In addition, Uganda and its southern neighbor Tanzania are emerging as potentially large oil and natural gas producers, putting their currencies at risk of the "Dutch disease" phenomenon, in which rapid foreign investment causes a dramatic appreciation of a country's currency. This would undermine both countries' status as PC-16 states and potential beneficiaries of investment in low-end manufacturing. The adoption of a common currency would help mitigate these risks.