Arusha. The East African Community (EAC) Secretariat has announced a pivotal step toward creating a seamless regional financial market, with Rwanda and Tanzania initiating technical discussions to link their national retail payment systems.
The pilot project is set to revolutionise how citizens and businesses conduct cross-border transactions, promising instant, low-cost money transfers across East Africa.
The initiative, which has moved into its technical implementation phase at a high-level meeting in Kigali, focuses on connecting Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSWITCH).
Once operational, the link will allow individuals and businesses in both nations to send and receive funds in real-time directly between their bank accounts and mobile money wallets.
Building a single digital ecosystem
This preparatory work is hailed as a crucial milestone in the region’s financial integration agenda.
“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 Eng Daniel Murenzi, EAC Principal Information Technology Officer.
The technical teams, meeting from November 10 to 14, 2025, are addressing critical matters including the interoperability framework, legal and regulatory alignment, governance, and the economic and business model for the integrated system.
Attendees include representatives from the Central Banks, National Payment Systems, AfrikaNenda, the Mojaloop Foundation, and the EAC Secretariat.
Proof of concept and regional blueprint
The bilateral connection between TIPS and RSwitch forms a strategic Proof of Concept (PoC).
This pilot is designed to demonstrate the technical and operational feasibility of a direct cross-border payment switch, establishing a scalable first step and a pioneering model for future expansion to all other EAC Partner States.
“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 across the region,” said Assistant Manager, Oversight and Policy, National Payments Directorate, Bank of Tanzania, Mr Fabian Ladislaus Kasole.
Transforming trade and inclusion
The economic and social benefits for the region are expected to be substantial.
By creating a direct pathway between national switches, the initiative is projected to significantly lower transaction costs, making cross-border payments more accessible to small-scale traders and ordinary citizens.
Individuals will gain the ability to transfer funds instantly to family and friends across the border using their existing mobile money or bank accounts.
The ability to make and receive secure, instant payments will boost regional trade by allowing businesses to settle invoices seamlessly, reducing friction and improving cash flow.
The project is backed by the Eastern Africa Regional Digital Integration Project (EARDIP), which is funded by the World Bank and coordinated by the EAC Secretariat.
EARDIP’s role includes supporting the development of local digital networks and the harmonization of policies to ensure a secure and trusted digital financial services environment throughout East Africa.
