By KPC Reporter
The East African Community (EAC) has moved a step closer to enabling instant cross-border payments after experts from Rwanda and Tanzania met in Zanzibar to advance a pilot project linking the two countries’ national payment systems.
The week-long technical meeting focused on finalising the governance, business and risk management frameworks needed to operationalise the Rwanda–Tanzania Cross-Border Payment Systems Proof of Concept (PoC), a flagship initiative under the EAC Cross-Border Payment System Masterplan.
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The project seeks to directly connect Tanzania’s Instant Payment System (TIPS) and Rwanda’s National Payment Switch (RSwitch), paving the way for real-time money transfers between individuals and businesses in the two countries.
Speaking during the meeting, Chairperson and Bank of Tanzania Assistant Manager for National Payments, Nestory Nicholas Maro, said the discussions were aimed at completing the functional, technical and regulatory requirements necessary for cross-border payment interoperability.
“Undertaking a Proof of Concept (PoC) for the interlinking of RSwitch and TIPS represents a practical and strategic approach, as this PoC will enable us to comprehensively assess the similarities, differences, opportunities and challenges associated with integrating our two platforms,” said Maro.
The initiative is part of the EAC’s broader efforts to establish a secure, affordable and real-time regional payment infrastructure capable of supporting trade, remittances and financial inclusion across East Africa.
During the meeting, experts worked on governance structures, service-level agreements, oversight mechanisms and operational procedures required to support the new payment corridor.
They also reviewed transaction pricing models, revenue-sharing arrangements and foreign exchange conversion frameworks designed to encourage adoption by financial institutions and consumers.
A key focus was the development of a comprehensive risk and compliance framework covering cybersecurity, fraud management, dispute resolution, liquidity management and business continuity to ensure the system operates safely and efficiently.
The pilot aims to address longstanding challenges facing cross-border transactions in the region, including high transfer costs, limited payment channels and slow processing times.
Once operational, the system will allow individuals and businesses in Rwanda and Tanzania to send and receive money instantly using existing bank accounts and mobile money wallets, significantly reducing the cost and time required for cross-border transactions.
The Rwanda–Tanzania payment corridor is expected to serve as a model for future interoperability among all EAC Partner States as the Community works towards deeper economic integration and increased intra-regional trade.
The meeting brought together experts from the central banks of Rwanda and Tanzania, payment system operators, payment service providers, the EAC Secretariat and development partners, including the World Bank and GIZ.
Officials said the outcomes of the Zanzibar meeting will guide the next phase of implementation as the two countries move closer to launching the EAC’s first operational instant cross-border payment corridor.
