Tanzania, Rwanda begin talks to link national payment switches

Arusha. Tanzania and Rwanda have commenced bilateral discussions on the technical modalities to link their national retail payment system switches.

The move is a step towards enabling instant and low-cost cross-border money transfers for citizens and businesses across East Africa.

The initiative, which entered its technical implementation phase at a meeting in Kigali, will connect Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSWITCH).

Once operational, the linkage will allow individuals and businesses in both countries to send and receive funds seamlessly between bank accounts and mobile money wallets in real time.

“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 East African Community (EAC) Secretariat.

The chairperson of the meeting, Mr Fabian Ladislaus Kasole, said the region remained steadfast in establishing a robust technical and operational framework that would ensure the successful interlinking of national retail payment systems.

Mr Kasole who is also Assistant Manager for Oversight and Policy at the Bank of Tanzania’s National Payments Directorate added that the framework would enhance cross-border payment efficiency and promoting financial inclusion.

The integration of TIPS and RSwitch forms the core of a strategic Proof of Concept (POC) pilot designed to demonstrate the technical and operational feasibility of a direct, functional cross-border payment switch within the EAC.

The Tanzania–Rwanda model is intended to serve as a pioneering framework for future expansion to all EAC Partner States, representing a crucial step towards a centralised regional digital payments market.

For citizens and traders in both countries, the system promises to revolutionise financial interactions by allowing instant cross-border transfers directly from bank accounts or mobile wallets.

This is expected to eliminate delays, reduce transaction costs, and simplify payments, making regional remittances and business transactions faster and more affordable.

 Economic benefits

Businesses will be able to settle payments with suppliers and partners across borders seamlessly, improving trade efficiency and expanding market opportunities.

Moreover, by leveraging the widespread use of mobile and digital payment platforms, the initiative will extend formal financial services to a broader population, including small traders and rural communities, thereby advancing financial inclusion across the region.

The ongoing technical preparations represent the first tangible implementation of the EAC Cross-Border Payment System Masterplan and align with the aspirations of the EAC Heads of State for deeper financial integration.

The Eastern Africa Regional Digital Integration Project (EARDIP), funded by the World Bank and coordinated by the EAC Secretariat, will play a key role in driving this process.

As a flagship regional initiative, EARDIP is laying the groundwork for a connected regional payment ecosystem by strengthening payment system linkages among Partner States.

Beyond payments, the project supports the development of digital networks that enable faster, safer, and more affordable money transfers, including real-time and cross-border mobile money services.

It also promotes harmonisation of policies and standards to ensure interoperability, cybersecurity, and data protection across national systems.

In addition, EARDIP is providing technical assistance and capacity building to national institutions to enhance their ability to manage digital payment systems effectively.

These efforts aim to make cross-border transactions as simple as domestic transfers, fostering trade, inclusion, and economic growth within the EAC region.

The ongoing technical meeting in Kigali, running from November 10 to 14, 2025, has brought together representatives from central banks, national payment systems, AfrikaNenda, the Mojaloop Foundation, and the EAC Secretariat.

The discussions are addressing issues such as interoperability frameworks, legal and regulatory alignment, governance and institutional arrangements, and business and regional integration models.