EAC strengthens regional digital integration with ongoing development of Regional Payment Systems Masterplan
East African Community Headquarters, Arusha, Tanzania, 30th January, 2025: The EAC is poised to accelerate regional digital integration with the development of an EAC Payment Systems Masterplan.
The Masterplan is set to harmonise legal, regulatory and oversight frameworks to promote a conducive cross-border payment ecosystem in the region.
Speaking during a meeting of the EAC Regional Payments System Steering Committee in Entebbe, Uganda, the EAC Deputy Secretary General in charge of Customs, Trade and Monetary Affairs, Ms. Annette Ssemuwemba, highlighted the importance of efficient and reliable payment systems in fostering economic integration.
“The EAC Payment Systems Masterplan will be a turning-point, making cross-border payments faster, safer, cheaper and more transparent. This initiative is crucial for unlocking the region’s trade and financial potential,” said Ms. Ssemuwemba.
Ms. Ssemuwemba reaffirmed the region’s desire to make cross-border payments more integrated in an effort to facilitate trade and financial inclusion.
The EAC region has seen rapid growth in digital payments, with mobile money transactions surging. However, challenges persist, including high transaction costs, limited interoperability, and regulatory disparities across Partner States. Cross-border payments remain costly, averaging 7% of the transaction value, well above the global average target of 1% for retail payments and 3% for remittances.
While the EAC Treaty has provisions for harmonisation of legal frameworks, the absence of an enforceable regional payments law and regulatory framework across all Partner States remains a challenge. While some Partner States have enacted national legislation to align with EAC commitments, others have not, creating a legal gap that hinders uniform enforcement of cross-border payment regulations.
Despite these hurdles, opportunities exist. The region's growing digital economy, expanding internet penetration, currently at 28% (meaningful connectivity - a level of internet access that allows people to have a safe, productive and enriching online experience at an affordable cost), and innovative financial technologies are paving the way for an inclusive and seamless payment ecosystem.
A key initiative expected in the EAC Payments Masterplan is the development of a mutual recognition framework for licensing Payment Service Providers (PSPs), which will facilitate their operations across borders without unnecessary regulatory barriers. To support digital financial services, a harmonised regulatory framework for intra-regional mobile money and e-wallet transactions is also being developed, promoting interoperability and security.
To further strengthen cross-border payments, principles for currency acceptability and convertibility will be introduced, addressing currency-related challenges and fostering better pricing mechanisms.
With the objective of developing infrastructure that is enabling for instant cross-border wholesale and retail payments, the Masterplan will identify infrastructure needs for instant cross-border payments to ensure access, speed, cost efficiency, transparency, inclusivity and safety as well as sustainability of the payment systems.
The EAC Regional Payments System Steering Committee meeting brought together experts from the EAC Partner States’ Central Banks, Development Partners such as GIZ, Trade Mark Africa (TMA) and World Bank as well as experts from the EAC Secretariat to validate the Draft Payment Systems Masterplan and to consolidate views and propositions for priority initiatives that will then be rolled out to achieve the broad objective of making cross-border payments within the region faster, safer, cheaper, transparent and more integrated.
By integrating national payment systems and enabling instant retail and wholesale payments across the region, individuals and businesses will benefit from lower transfer costs, reduced reliance on costly intermediaries and greater financial inclusion. Mobile money users, small traders and online businesses will experience seamless transactions across borders, thereby enhancing trade and economic opportunities.
For businesses and consumers, the Masterplan will provide a secure and efficient payment ecosystem that supports economic growth. With harmonised regulations and stronger oversight, the risks of fraud and transaction delays will be minimised, boosting confidence in digital payments.
Additionally, the ability to settle transactions in local currencies will reduce foreign exchange costs, making every day cross-border transactions – from remittances to e-commerce – more affordable and convenient for EAC citizens.
About EARDIP:
The Eastern Africa Regional Digital Integration Project (EARDIP) plays a pivotal role in enhancing the EAC’s digital payment landscape. By supporting the harmonisation o legal and regulatory frameworks, promoting interoperability, and strengthening digital infrastructure.
EARDIP aims to support the EAC region to reduce transaction costs, improve efficiency, and foster financial inclusion. The project is integral to the broader goal of creating a single regional payment ecosystem that supports the EAC Monetary Union objectives.
For more information, please contact:
Simon Peter Owaka
Senior Public Relations Officer
Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 768 552087
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
About the East African Community Secretariat:
The East African Community (EAC) is a regional intergovernmental organisation of eight (8) Partner States, comprising the Republic of Burundi, the Democratic Republic of Congo, the Republic of Kenya, the Republic of Rwanda, the Federal Republic of Somalia, the Republic of South Sudan, the Republic of Uganda and the United Republic of Tanzania, with its headquarters in Arusha, Tanzania. The Federal Republic of Somalia was admitted into the EAC bloc by the Summit of EAC Heads of State on 24th November, 2023 and became a full member on 4th March, 2024
Tags: #EARDIP