Rwanda and Tanzania have begun technical work to link their national retail payment systems, marking the first real step toward an East African Community (EAC) payments integration plan that could make sending money across borders as fast and affordable as a local transfer.
According to a presser released by the EAC Headquarters on November 11, the initiative is now under implementation in Kigali which will connect Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSWITCH), allowing individuals and businesses to send and receive funds instantly between bank accounts and mobile money wallets.
This bilateral pilot forms the basis of a Proof of Concept (POC) that will later expand to other EAC partner states, creating what officials describe as a “single regional instant payment ecosystem.
“This preparatory work marks a pivotal milestone in our regional payment system integration agenda, moving us closer to a single regional instant payment ecosystem that will facilitate secure, affordable, and real-time transactions across borders,” said Eng. Daniel Murenzi, Principal Information Technology Officer at the EAC.
Fabian Ladislaus Kasole, Assistant Manager for Oversight and Policy at the Bank of Tanzania, said the region is committed to achieving a seamless system that boosts efficiency and financial inclusion.
“As a region, we remain committed to establishing a robust technical and operational framework that will ensure the successful interlinking of our national retail payment systems,” he said.
A game-changer for users and businesses
“Once launched, the system will allow individuals to send money across the Rwanda–Tanzania border directly through existing digital channels. No longer will users need intermediaries or face high transaction fees and long clearing times,” the statement read in part.
For businesses, especially SMEs and cross-border traders, the system is set to streamline payments to suppliers and partners, reduce friction in regional commerce, and unlock new trade opportunities.
Advancing financial inclusion
By using digital platforms already familiar to millions, the project expands access to formal financial services — especially for people in rural and underserved areas, who often rely on informal networks to send money.
The initiative directly advances the EAC Cross-Border Payment System Masterplan, backed by the World Bank–funded Eastern Africa Regional Digital Integration Project (EARDIP).
