Rwanda and Tanzania have begun technical discussions to link their national retail payment systems, paving the way for instant, low-cost cross-border money transfers in East Africa.
- •The initiative will connect Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSWITCH).
- •Once operational, individuals and businesses will be able to transfer funds between bank accounts and mobile money wallets in real time, bypassing delays and reducing costs associated with current systems.
- •From Nov. 10–14 in Kigali, technical teams from central banks, national payment systems, and partners including AfrikaNenda and Mojaloop Foundation met to discuss interoperability, regulatory alignment, governance, and operational frameworks.
“This preparatory work marks a pivotal milestone in our regional payment system integration agenda,” said Eng. Daniel Murenzi, EAC Principal Information Technology Officer. “It moves us closer to a single regional instant payment ecosystem that facilitates secure, affordable transactions across borders.”
Fabian Ladislaus Kasole, Assistant Manager at the Bank of Tanzania, added that the project demonstrates the region’s commitment to creating a robust technical and operational framework for cross-border payments and financial inclusion.
The integration is part of a proof-of-concept pilot designed to test the technical and operational feasibility of a direct cross-border payment switch. Officials say the Tanzania-Rwanda model will serve as a blueprint for expansion to all EAC member states, laying the groundwork for a fully integrated regional digital payments market.
For citizens, the linkage will simplify sending money to family, friends, or businesses across borders. Businesses are expected to benefit from faster, more secure payments, which will reduce operational friction and support trade and commerce across the region.
The project is being implemented under the Eastern Africa Regional Digital Integration Project (EARDIP), funded by the World Bank and coordinated by the EAC Secretariat. EARDIP supports digital connectivity between partner states, harmonizes policies, strengthens cybersecurity, and promotes inclusion by making cross-border transactions as simple as domestic ones.
