Faced with high fees and slow money transfers in the region, Rwanda and Tanzania have taken a decisive step forward by launching a pilot project for low-cost cross-border money transfers, spearheaded by the East African Community (EAC). By interconnecting their national payment platforms, this initiative promises instant, affordable, and secure transactions between the two countries, paving the way for financial inclusion and increased competitiveness for local populations and businesses.

A Decisive Step Towards Financial Integration in East Africa

Rwanda and Tanzania have just begun the technical testing phase of the new low-cost cross-border money transfer system, developed under the auspices of the East African Community (EAC). This groundbreaking initiative aims to revolutionize regional payments by facilitating instant transactions between the two countries and drastically reducing user fees.

Objective: Fast and affordable transfers

The pilot project connects Tanzania’s Instant Payments System (TIPS) to Rwanda’s national platform, RSwitch, enabling individuals and businesses to send and receive money in real time. This interconnection will allow citizens to transfer funds directly between bank accounts and mobile wallets, without delays or prohibitive costs. This advancement marks a key step in the integration of regional payments and is part of the EAC’s broader plan to establish a single, interconnected electronic payments ecosystem.

A lever for trade and financial inclusion

Currently, transferring money from Tanzania to Rwanda costs an average of 44.27% of the amount sent, a rate well above the global average of 6.49%. This innovative system promises to reduce these costs, thereby promoting intra-regional trade, economic mobility, and financial inclusion, particularly for SMEs and individuals.

Prospects for the region and technical challenges

The technical meetings, held in Kigali from November 10 to 14, 2025, bring together teams from central banks, payment experts, and partner organizations such as AfrikaNina and the Moja Loop Foundation. These stakeholders are working to harmonize interoperability standards, governance, and cybersecurity to ensure a reliable and scalable environment for all future EAC members.

Towards regional expansion and increased competitiveness

This pilot project between Rwanda and Tanzania is seen as a model for other member states. Once technical integration is validated, the network can be expanded throughout East Africa, accelerating the transition to a more competitive, dynamic, and economically inclusive region. The expected benefits include simplified trade, reduced transfer costs and easier access to digital financial services for the greatest number of people.