- For the citizens of Rwanda and Tanzania, this integration promises to transform everyday financial interactions.
- Individuals will be able to transfer funds to family, friends, or businesses across the border directly from their existing bank accounts or mobile money wallets in real-time, eliminating the delays and complexities of current systems.
- New payment platform under test is poised to transform everyday financial transactions in East Africa, pushing the bloc closer to economic integration promises.
Rwanda and Tanzania have been picked to pilot the roll out of national retail payment system switches, a new platform that is billed to revolutionise how traders and individuals send and spend money across the East African Community bloc.
According to a communique seen by The Exchange, the initiative is a vital measure in advancing the realisation of instant, low-cost cross-border money transfers for both citizens and businesses in a region that is a trailblazer in embracing mobile payments such as Kenya’s M-PESA.
The initiative, which moved into its technical implementation phase at an ongoing high-level meeting in Kigali, will connect Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSWITCH).
Once operational, the linkage will allow individuals and businesses in both countries to send and receive money between bank accounts and mobile money wallets seamlessly and in real time.
Rwanda and Tanzania pilot East Africa’s regional payment system
“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.
In his remarks, the Chairperson of the meeting, Mr. Fabian Ladislaus Kasole, Assistant Manager, Oversight and Policy, National Payments Directorate, Bank of Tanzania, reaffirmed the collective commitment.
“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.”
The integration of Tanzania’s TIPS and Rwanda’s RSwitch forms the core of a strategic Proof of Concept (POC) pilot. This phased approach is designed to demonstrate the technical and operational feasibility of a direct, functional cross-border payment switch within the EAC.
This crucial bilateral (Tanzania-Rwanda) model, serves as a pioneering model for future expansion to all EAC Partner States. The initiative serves as a practical and scalable first step, laying the foundational groundwork for the future aspiration of a fully integrated, centralised regional digital payments market.
Enable transfer funds to family, friends, or businesses across borders
For the citizens of Rwanda and Tanzania, this integration promises to transform everyday financial interactions. Individuals will be able to transfer funds to family, friends, or businesses across the border directly from their existing bank accounts or mobile money wallets in real-time, eliminating the delays and complexities of current systems.
Importantly, by establishing a direct pathway between the national switches, the initiative is projected to significantly lower transaction costs, making cross-border payments more affordable and accessible for everyone.
The economic implications for businesses and traders are equally profound. The ability to make and receive instant, secure payments will greatly enhance trade and commerce, allowing businesses to settle invoices with suppliers and partners seamlessly. This efficiency reduces operational friction and unlocks new opportunities for growth and market expansion within the region.
Furthermore, by leveraging the digital payment platforms that millions already use daily, this initiative represents a major leap forward in financial inclusion. It extends the reach of formal financial services by making cross-border transactions as simple as a domestic transfer, thereby empowering a broader segment of the population, from small-scale merchants to individual consumers, to participate more fully in the regional economy.
The ongoing technical preparations for the interlinking represent the first tangible implementation of the EAC Cross-Border Payment System Masterplan and directly support the strategic aspirations of the EAC Heads of State for deeper regional financial integration.
The Eastern Africa Regional Digital Integration Project (EARDIP), funded by the World Bank and coordinated by the EAC Secretariat, will play a key role in supporting the implementation of the EAC Cross-Border Payment System Masterplan. As a flagship regional initiative, EARDIP is supporting the building of the foundation for a modern and connected regional payment ecosystem by strengthening the linkage of payment systems between Partner States.
The project is also supporting the development of cross-border and local digital networks, ensuring that even rural and remote communities can benefit from faster, safer, and more affordable money transfers. This includes supporting real-time payments, cross-border mobile money services, and instant transactions between banks and financial platforms across the region.
EARDIP is also supporting the harmonisation of policies and standards that guide digital financial services in East Africa. By promoting common rules, shared standards, and strong cybersecurity and data protection systems, the project will ensure that cross-border payments are secure and trusted.
Technical support and capacity building
In addition, EARDIP will provide technical support and capacity building to help national institutions strengthen and manage their digital payment systems. Through these efforts, EARDIP will make it easier for citizens and businesses to send and receive money across borders, helping drive regional trade, inclusion, and economic growth.
The 10th – 14th November, 2025 technical meeting in Kigali, Rwanda has brought together representatives from the Central Banks, National Payment Systems, AfrikaNenda, Mojaloop Foundation and the EAC Secretariat.
The technical teams are expected to hold a series of meetings to cover various matters, including an interoperability framework to address technical integration and operational designs as well as legal and regulatory alignment, governance and institutional arrangements, economic and business model, and strategic and regional alignment among others.
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