Arusha. The East African Community (EAC) has begun implementing a regional instant payment system, starting with a pilot project between Rwanda and Tanzania that is expected to transform the way citizens and businesses transfer money across borders.
The initiative, which entered its technical implementation phase at a high-level meeting in Kigali this week, aims to link Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSwitch).
Once operational, the system will allow individuals and businesses in both countries to send and receive money directly between bank accounts and mobile wallets in real time, the EAC said in a statement.
EAC Principal Information Technology Officer, Mr Daniel Murenzi, said the development marks a significant milestone in the region’s efforts to build an integrated digital payments ecosystem.
“This preparatory work marks a pivotal milestone in our regional payment system integration agenda, moving us closer to a single regional instant payment ecosystem that will facilitate secure, affordable, and real-time transactions across borders,” said Mr Murenzi.
The chairperson of the meeting, Mr Fabian Ladislaus Kasole, who is Assistant Manager for Oversight and Policy at the Bank of Tanzania’s National Payments Directorate, reaffirmed the region’s collective commitment to the integration effort.
“As a region, we remain committed to establishing a robust technical and operational framework that will ensure the successful interlinking of our national retail payment systems, ultimately enhancing cross-border payment efficiency and financial inclusion,” he said.
The linkage of Tanzania’s TIPS and Rwanda’s RSwitch forms the core of a Proof of Concept (PoC) pilot designed to demonstrate the technical and operational feasibility of direct, cross-border payment connectivity within the EAC.
Officials say the bilateral pilot will serve as a scalable model for future expansion to other EAC partner states, laying the groundwork for a fully integrated and centralised regional digital payments market.
For ordinary citizens, the integration promises to make cross-border transactions faster, simpler, and cheaper.
People will be able to send money to family, friends, or businesses across the border in real time from their existing bank accounts or mobile money wallets—cutting out intermediaries and reducing costs.
Businesses are also expected to benefit from instant, secure settlement of payments with suppliers and partners, which will help reduce transaction delays and operational costs while stimulating trade within the region.
Boosting financial inclusion
By leveraging platforms already used daily by millions, the initiative represents a major leap in advancing financial inclusion.
It will make cross-border payments as seamless as domestic ones, thereby empowering small-scale traders, entrepreneurs, and consumers to participate more fully in the regional economy.
The interlinking of national payment systems is part of the implementation of the EAC Cross-Border Payment System Masterplan, which aligns with the strategic goal of the EAC Heads of State to deepen regional financial integration.
The project is being supported by the Eastern Africa Regional Digital Integration Project (EARDIP), funded by the World Bank and coordinated by the EAC Secretariat.
EARDIP aims to build a modern, interconnected regional payment ecosystem by strengthening linkages between partner states and promoting interoperability in financial systems.
The programme also focuses on developing both cross-border and local digital networks to ensure rural and remote communities can access faster, safer, and more affordable payment services.
It further supports harmonisation of digital financial service policies and standards, including cybersecurity, data protection, and governance frameworks.
Through technical assistance and capacity building, EARDIP seeks to help national institutions strengthen and manage their payment systems, making it easier for citizens and businesses to transact across borders and drive inclusive regional growth.
The ongoing technical meeting, taking place from 10–14 November 2025 in Kigali, has brought together representatives from central banks, national payment systems, the EAC Secretariat, AfrikaNenda, and the Mojaloop Foundation.
Participants are expected to address key issues including interoperability frameworks, legal and regulatory alignment, governance structures, and regional strategic coordination for the system’s rollout.
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