ADDIS ABABA, Ethiopia (July 8, 2025) — Leaders from East Africa have raised alarm over fragmented and incompatible digital payment systems that continue to stall the region’s economic potential, calling for urgent legal and regulatory reforms to enable seamless cross-border transactions.
At a five-day workshop co-hosted by the East African Community (EAC) and the Intergovernmental Authority on Development (IGAD) in Addis Ababa, officials and central bankers from nine countries called for harmonized digital frameworks that would remove technical and legal barriers to regional financial integration.
Despite progress in domestic digital finance—particularly in Kenya, Tanzania and Ethiopia—cross-border interoperability remains limited due to inconsistent regulations, technical disparities, and growing cybersecurity concerns.
“The collaboration between EAC and IGAD exemplifies the spirit of regional solidarity and shared ambition that Africa needs to build the future it envisions—a future of seamless digital integration, inclusive prosperity, and economic transformation,” said Dr. Mohyeldeen Eltohami, IGAD’s director of economic cooperation and regional integration.
The workshop, held from June 30 to July 4, was organized under the Eastern Africa Regional Digital Integration Project (EARDIP), with support from the World Bank. The initiative aims to boost regional trade and financial inclusion by improving broadband infrastructure and cross-border digital services, particularly payment systems.
“Digital transformation is no longer a choice but a necessity,” Eltohami added. “Together, IGAD and EAC can build a digitally integrated Eastern Africa, where borders no longer limit opportunity.”
Workshop participants stressed the importance of payment systems as the backbone of the region’s digital economy. Interoperability, they agreed, is no longer a luxury but a prerequisite for shared economic growth.
“Payment systems are an enabler in this digital ecosystem for the region, with their interoperability a critical factor,” said Eng. Daniel Murenzi, principal information technology officer at the EAC Secretariat. “We need to review national payment processes, harmonize legal and regulatory instruments, and facilitate interoperability.”
The discussions focused on three priority areas: digital infrastructure, legal and regulatory frameworks, and regional payment system integration. Recommendations included creating regulatory sandboxes to support innovation, investing in shared digital infrastructure, and designing fast payment systems (FPS) centered on consumer needs.
Gynedi Srinivas, senior financial sector specialist at the World Bank, said the workshop’s goals align with the G20 roadmap for faster and cheaper cross-border payments.
“The benefits of cross-border interoperability of fast payment systems will especially enable safer, faster, and low-cost retail payments across borders, helping end-users, individuals, and MSMEs to make and receive payments seamlessly,” he said.
Participants also discussed the potential of emerging technologies such as blockchain and central bank digital currencies, while highlighting the urgent need for unified cybersecurity frameworks and real-time threat intelligence sharing.
Delegates from Burundi, Djibouti, Ethiopia, Kenya, Rwanda, Somalia, South Sudan, Tanzania, and Uganda attended, alongside representatives from the Democratic Republic of Congo’s Ministry of Regional Integration, the World Bank, and the Bank of Italy.
Recommendations from the workshop included anchoring fast payment system design in user needs, facilitating peer-to-peer exchanges among central banks, and convening annual joint workshops on cross-border payments.
