The East African Community has launched a pilot project to link Rwanda and Tanzania’s national payment systems, a move officials say will pave the way for instant, low-cost money transfers across the region.
The project connects Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSwitch), allowing people and businesses to send and receive money instantly between bank accounts and mobile wallets in both countries.
The initiative, unveiled at a high-level meeting this week in Kigali, marks the first step in building a regional instant payment network aimed at boosting trade, financial inclusion, and regional integration.
“This preparatory work marks a pivotal milestone in our regional payment system integration agenda,” said Eng. Daniel Murenzi, the EAC’s principal information technology officer. “It moves us closer to a single regional instant payment ecosystem that will facilitate secure, affordable, and real-time transactions across borders.”
The Rwanda–Tanzania pilot serves as a proof of concept for broader EAC adoption. Once fully implemented, it will create a framework for linking all partner states’ payment systems, forming what officials envision as a seamless regional digital payments market.
Mr. Fabian Ladislaus Kasole, assistant manager for oversight and policy at the Bank of Tanzania, said the pilot reflects a shared regional goal. “We remain committed to establishing a robust technical and operational framework that will enhance cross-border payment efficiency and financial inclusion,” he said.
For consumers and traders, the system could eliminate the delays and high costs of traditional cross-border transfers. Individuals will be able to send money to family or friends across the border in real time, while businesses can settle transactions instantly, helping improve cash flow and trade efficiency.
The pilot is part of the EAC’s Cross-Border Payment System Masterplan and is being supported by the World Bank–funded Eastern Africa Regional Digital Integration Project (EARDIP). The project aims to connect digital payment systems across member states and expand financial access, particularly in rural areas.
EARDIP is also working to harmonize digital finance regulations and strengthen cybersecurity standards to ensure secure and trusted regional transactions.
Representatives from central banks, national payment systems, AfrikaNenda, the Mojaloop Foundation, and the EAC Secretariat are meeting in Kigali from Nov. 10 to 14 to finalize the technical, legal, and operational details.
If successful, the Rwanda–Tanzania link could serve as a model for a fully integrated regional digital payment system a step officials say would make sending money across East Africa as simple as a local transfer.
