Rwanda and Tanzania have begun bilateral talks on linking their national retail payment systems to enable seamless, real-time cross-border money transfers across East Africa.
The initiative, which entered its technical implementation stage during a high-level meeting held in Kigali from November 10 to 14, will connect Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSWITCH).
Once operational, the integration will allow individuals and businesses in both countries to send and receive funds instantly between bank accounts and mobile money wallets.
“This preparatory work marks a pivotal milestone in our regional payment system integration agenda, moving us closer to a single regional instant payment ecosystem that will facilitate secure, affordable, and real-time transactions across borders,” said Eng. Daniel Murenzi, EAC Principal Information Technology Officer.
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Fabian Ladislaus Kasole, Assistant Manager for Oversight and Policy at the National Payments Directorate of the Bank of Tanzania, reaffirmed this commitment, stating: “As a region, we remain committed to establishing a robust technical and operational framework that will ensure the successful interlinking of our national retail payment systems, ultimately enhancing cross-border payment efficiency and financial inclusion across the region.”
According to Ecofin Agency, The linkage between Tanzania’s TIPS and Rwanda’s RSWITCH forms the centerpiece of a strategic Proof of Concept pilot aimed at demonstrating the technical and operational viability of a direct cross-border payment within the East African Community (EAC).
The Tanzania-Rwanda model is expected to serve as a blueprint for expanding the initiative to other EAC Partner States.
This ongoing technical work represents the first concrete implementation of the EAC Cross-Border Payment System Masterplan and aligns with the aspirations of the EAC Heads of State to deepen regional financial integration.
High remittance costs across the region highlight the urgency of this initiative.
According to the World Bank’s Remittance Prices Worldwide data, as of the first quarter of 2025, sending money from Tanzania to Rwanda cost an average of 44.27% of the amount sent, far above the global average of 6.49%.
These high fees have long hindered regional trade, financial inclusion, and economic mobility.
The TIPS–RSWITCH connection is therefore expected to significantly lower costs and enable affordable, real-time cross-border transfers within the region.
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Image Credit: East African Community
