A new push is underway across the East African Community to tie up retail payment systems, in a plan that would see individuals and merchants enjoy low-cost, cross border charges while sending money.

In a statement on Tuesday, the EAC announced that a test drive for the new payment system is underway in Rwanda and Tanzania. The pilot phase will see Rwanda's National Payment Switch (RSWITCH) interlinked with Tanzania’s Instant Payment System (TIPS).

Once operational, EAC stated, the linkage will allow individuals and businesses in Rwanda and Tanzania send and receive money between their bank accounts and mobile money wallets seamlessly and in real time.

"This preparatory work marks a pivotal milestone in our regional payment integration agenda, moving us closer to a single EAC instant payment ecosystem," explained Daniel Murenzi, EAC's principal information technology officer in a statement.

According to the regional bloc, Rwanda and Tanzania cross-border e-payments test phase is designed to demonstrate the technical and operational feasibility of a direct, functional cross-border payment switch within the EAC. 

Additionally, the Tanzania-Rwanda experience will serve as a trailblazer for future expansion to all EAC Partner States, including Kenya, Uganda, the Democratic Republic of Congo, Burundi, South Sudan, and Somalia.

Bank of Tanzania's Fabian Ladislaus Kasole noted that the region has set sight on a collective resolve to establish "a robust framework that enhances cross-border payment efficiency and financial inclusion."

By facilitating instant, affordable transfers, the project is expected to transform trade and financial inclusion, especially for small businesses and individuals, while promoting a modern, secure, and connected regional payment ecosystem, the EAC statement clarified.

Eastern Africa Regional Digital Integration Project (EARDIP)

The Eastern Africa Regional Digital Integration Project (EARDIP), an initiative that is financed by the World Bank and coordinated by the EAC, 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.

At the moment, a high-level meeting is underway in Kigali, bringing together policymakers from central banks, payment system firms, digital finance players, regulators and other leaders to firm up the e-payment system roll out.

The 10th – 14th November, 2025 technical meeting in Kigali, Rwanda seeks to explore interoperability framewors, operational designs as well as legal and regulatory compliance, governance, economic and business model, and strategic and regional alignment to smoothen the e-payments system implentation.

[email protected]