• Rwanda and Tanzania are linking their national payment systems—TIPS and RSWITCH—through a bilateral pilot.
• Sending money from Tanzania to Rwanda costs an average of 44.27% in Q1 2025, according to the World Bank—nearly seven times the global average of 6.49%.
• The initiative supports the EAC Cross-Border Payment System Masterplan and aims to reduce transaction costs and boost financial inclusion.

Rwanda and Tanzania have commenced bilateral discussions on technical modalities to link their national retail payment systems switches, in a move set to revolutionize cross-border money transfers across East Africa.

The initiative, which moved into its technical implementation phase at a high-level meeting in Kigali from November 10-14, will connect 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 seamlessly and in real time.

"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.

Fabian Ladislaus Kasole, Assistant Manager, Oversight and Policy, at the National Payments Directorate of the Bank of Tanzania, reaffirmed the collective commitment. "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."

The integration of Tanzania's TIPS and Rwanda's RSWITCH forms the core of a strategic Proof of Concept pilot. This pilot is designed to demonstrate the technical and operational feasibility of a direct, functional cross-border payment switch within the EAC. The bilateral Tanzania-Rwanda model serves as a pioneering model for future expansion to all EAC Partner States.

The ongoing technical preparations for the interlinking represent the first tangible implementation of the EAC Cross-Border Payment System Masterplan and directly support the aspirations of the EAC Heads of State for deeper regional financial integration.

Staggering remittance costs across the region underscore the urgency of this integration. According to the World Bank’s Remittance Prices Worldwide data, as of Q1 2025, it cost an average of 44.27% of the amount sent to transfer money from Tanzania to Rwanda—a figure that dwarfs the global average of 6.49%. Such exorbitant fees not only burden individuals and small businesses but also hinder regional trade, financial inclusion, and economic mobility. By enabling direct, real-time transfers, the TIPS–RSWITCH linkage is expected to facilitate affordable cross-border transfers within the region.

Hikmatu Bilali