MOMBASA, Kenya — The East African Community has approved a new masterplan to modernize and harmonize cross-border payment systems, marking a major step toward deeper regional economic integration and the bloc’s goal of adopting a single currency by 2031.
The Cross-Border Payment System Masterplan was endorsed on May 9 during the 28th Ordinary Meeting of the EAC Monetary Affairs Committee (MAC) in Mombasa. The committee comprises central bank governors from EAC member states.
The plan aims to streamline regional payment infrastructure, making transactions faster, more secure, and affordable — particularly for micro, small, and medium enterprises (MSMEs), which account for the majority of intra-regional trade, much of it informal.
Bank of Tanzania Governor Emmanuel Tutuba described the masterplan’s adoption as “a critical step towards a reliable cross-border payments ecosystem,” highlighting the growing impact of financial technologies and cryptocurrencies in expanding financial access. Tutuba also emphasized the need to address regulatory and cybersecurity risks associated with these innovations.
Dr. Kamau Thugge, Governor of the Central Bank of Kenya, credited the Monetary Affairs Committee with fostering regional integration and financial stability, especially through the development of modern payment systems.
Annette Mutaawe Ssemuwemba, EAC Deputy Secretary General for Customs, Trade and Monetary Affairs, praised the central banks for their leadership, calling the masterplan a “landmark achievement” that will drive inclusive economic growth by expanding access to digital payment systems across EAC borders.
Built on four key pillars — regulatory harmonization, infrastructure modernization, inclusivity, and capacity building — the plan seeks to address persistent barriers such as high transaction costs, limited digital access, and lack of system interoperability. It prioritizes the inclusion of retail traders, who are estimated to contribute to 70% of intra-EAC trade.
While the East African Payment System (EAPS), introduced in 2014, was intended to facilitate regional transactions, its adoption has been limited. Erick Sirali, Director of Digital Trade at TradeMark Africa, said the new masterplan is designed to help MSMEs connect to more efficient payment channels and expand their role in cross-border trade.
“This blueprint is designed to create valuable opportunities for these businesses to deepen their participation in cross-border trade more effectively and expand their reach,” Sirali said.
The masterplan also introduces a regional instant retail switch, aims to align governance frameworks with international standards, and encourages innovation through central bank digital currencies (CBDCs) and enhanced digital oversight.
Development partners, including TradeMark Africa, have pledged support for the plan’s implementation, signaling readiness to move from strategy to execution in transforming regional trade through digital finance.
