Rwanda, Tanzania to Link Payment Systems in Push for Instant Cross-Border Transfers

Rwanda and Tanzania have begun talks to link their national payment systems in a move aimed at enabling instant, low-cost money transfers between the two countries, marking a step toward greater financial integration in East Africa.

The initiative, now in its technical implementation phase, will connect Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSwitch), allowing citizens and businesses to send and receive funds directly between bank accounts and mobile wallets in real time.

Officials said the linkage will form part of a broader effort by the East African Community (EAC) to create a unified regional payment framework that supports faster and more affordable transactions across borders.

“This marks a key milestone in our regional integration agenda, moving us closer to a single instant payment ecosystem that supports secure and real-time cross-border transfers,” said Daniel Murenzi, the EAC’s Principal Information Technology Officer.

The pilot project, known as a Proof of Concept (POC), will test the feasibility of connecting national payment switches directly, creating a model that could be replicated across all EAC partner states.

By linking existing national infrastructure, the system aims to eliminate intermediaries, shorten settlement times and lower transaction costs.

For traders and small businesses operating between Rwanda and Tanzania, the system could reduce the cost of settling cross-border payments and improve cash flow.

Officials said it could also help promote financial inclusion by making cross-border transfers accessible through the mobile platforms widely used in both countries.

The work supports the implementation of the EAC Cross-Border Payment System Masterplan, which seeks to harmonise regional payment infrastructure and regulations.

The initiative is backed by the World Bank–funded Eastern Africa Regional Digital Integration Project (EARDIP), which supports the development of digital payment networks and cybersecurity standards across the bloc.

The Kigali meeting, running from November 10 to 14, brings together representatives from the central banks of Rwanda and Tanzania, national payment system operators, the EAC Secretariat, and partners including AfrikaNenda and the Mojaloop Foundation.

Delegates are discussing an interoperability framework to address technical integration, legal and regulatory alignment, and governance structures ahead of the rollout.

If successful, the Rwanda–Tanzania linkage could form the backbone of a regional payment network covering all EAC states, streamlining trade and financial transactions across the bloc.

gandae@businessdayafrica.org