DAR ES SALAAM, November 2025 – In a landmark move for regional finance, Tanzania and Rwanda have commenced the technical integration of their national payment systems, a project set to enable instant, low-cost cross-border money transfers for citizens and businesses. This initiative establishes the first tangible proof of concept for a unified East African Community (EAC) instant payment ecosystem.
The high-level technical meeting in Kigali from November 10-14, 2025, has launched the implementation phase to link 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 money between bank accounts and mobile money wallets in real time, seamlessly and directly.
A Strategic Pilot for the Entire EAC
This bilateral project is strategically designed as a pilot for the entire East African Community. The integration of TIPS and RSwitch forms the core of a Proof of Concept (POC) designed to demonstrate the technical and operational feasibility of a direct cross-border payment switch within the EAC. The successful implementation of the Tanzania-Rwanda model is intended to serve as a foundational blueprint for future expansion to all EAC Partner States.
Eng. Daniel Murenzi, EAC Principal Information Technology Officer, described the preparatory work as a “pivotal milestone in our regional payment system integration agenda,” moving the bloc closer to a single regional instant payment ecosystem.
Driving Down Costs and Boosting Economic Activity
A primary driver for this integration is the exceptionally high cost of cross-border transfers within the region. Existing payment corridors in East Africa are among the most expensive in the world, with costs for sending money from Tanzania to Rwanda reaching a staggering 44% of the transaction amount. By establishing a direct pathway between national switches, the initiative is projected to significantly lower these transaction costs, making cross-border payments more affordable and accessible for everyone.
The economic implications are profound. The ability to make and receive instant, secure payments is expected to greatly enhance trade and commerce, allowing businesses to settle invoices with partners and suppliers seamlessly. This efficiency reduces operational friction and unlocks new opportunities for growth and market expansion within the region.
Supported by a Regional Framework
This initiative is not an isolated effort but the first tangible implementation of the EAC Cross-Border Payment System Masterplan, directly supporting the strategic aspirations of the EAC Heads of State for deeper regional financial integration. The project receives crucial support from the World Bank-funded Eastern Africa Regional Digital Integration Project (EARDIP), which is coordinated by the EAC Secretariat to help build a modern regional payment ecosystem.
The technical meeting in Kigali brought together representatives from the central banks, national payment systems, and digital finance partners to finalize the technical, regulatory, and governance frameworks for this pioneering regional rollout.
