How Rwanda-Tanzania plan to enable instant, low‑cost cross‑border payments
Rwanda and Tanzania have kicked off the technical phase of a plan to link their national retail payment switches, which authorities say will deliver instant, low‑cost cross‑border transfers between bank accounts and mobile money wallets in both countries.
The linkage will connect Tanzania’s Instant Payment System (TIPS) with Rwanda’s National Payment Switch (RSwitch) to create real‑time rails for person‑to‑person, business‑to‑business, and government payments across the border.
The initiative is being developed as a proof‑of‑concept (POC) under the East African Community (EAC) payments integration agenda, with the goal of scaling to other partner states.
“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, the EAC’s Principal Information Technology Officer.
Chairing the Kigali meeting, Fabian Ladislaus Kasole, Assistant Manager for Oversight and Policy at the Bank of Tanzania’s National Payments Directorate, said the two countries are building a “robust technical and operational framework” to ensure the switch‑to‑switch link runs safely and efficiently. “As a region, we remain committed to establishing a framework that enhances cross‑border payment efficiency and financial inclusion,” he added.
How it will work
Once live, the corridor will allow senders in Rwanda or Tanzania to push funds directly from existing bank accounts or mobile money wallets to recipients across the border, with immediate confirmation and settlement through the two national switches.
By creating a direct pathway between the switches, authorities expect to trim intermediary hops and foreign‑denominated routes, which should lower transaction costs, reduce delays, and improve transparency on fees and delivery times.
This story is written and edited by the Global South World team, you can contact us here.
