DAR ES SALAAM, Nov. 11 (Xinhua) -- The East African Community (EAC) has begun implementing a pioneering initiative to create a regional instant payment network, starting with a pilot project linking Tanzania and Rwanda's national retail payment systems.
According to an EAC statement issued on Tuesday, the project, now under technical execution at a high-level meeting in Kigali, Rwanda's capital, will connect the Tanzania Instant Payment System with Rwanda's national e-payment switch, RSwitch.
Once operational, it will enable real-time, low-cost money transfers between bank accounts and mobile wallets across the two countries, the statement said.
"This preparatory work marks a pivotal milestone in our regional payment integration agenda, moving us closer to a single EAC instant payment ecosystem," said Daniel Murenzi, EAC's principal information technology officer.
Fabian Ladislaus Kasole from the Bank of Tanzania reaffirmed the region's collective resolve to establish "a robust framework that enhances cross-border payment efficiency and financial inclusion."
The Tanzania-Rwanda linkage serves as the foundation for a proof-of-concept pilot designed to demonstrate the technical and operational feasibility of interconnecting payment systems across the region, the statement said, adding that the initiative will serve as a model for expansion to all EAC member states.
The statement said that, by enabling instant, affordable transfers, the project is expected to transform trade and financial inclusion, especially for small businesses and individuals, while promoting a modern, secure, and connected regional payment ecosystem.
The Kigali meeting, running from Monday to Friday, brings together central banks, payment system operators, and digital finance partners to finalize technical, regulatory, and governance frameworks for the regional rollout, said the statement. ■