At Entebbe, Uganda, Friday May 9, 2025, in a landmark decision aimed at enhancing regional economic integration, central bank governors from the East African Community (EAC) adopted a Regional Payment Systems Masterplan during a summit held in Entebbe.
This policy is designed to improve the efficiency of cross-border transactions, reduce costs, and promote financial inclusion across the region.
The new Masterplan focuses on harmonizing legal, regulatory, and technological frameworks among EAC Partner States. It targets long-standing challenges such as high transaction fees, delayed settlements, and lack of interoperability among payment systems. By addressing these issues, the policy aims to make cross-border payments cheaper, faster, and more secure.
Key features of the policy include the mutual recognition of Payment Service Providers (PSPs), allowing licensed operators to function across borders without unnecessary restrictions. The plan also introduces a harmonized regulatory framework for mobile money and digital wallets to ensure interoperability and protect users.
The Masterplan sets out guiding principles for currency convertibility and infrastructure development to support instant retail and wholesale payments. These measures are intended to reduce reliance on foreign currencies and encourage intra-regional trade.
The initiative is supported by the Eastern Africa Regional Digital Integration Project (EARDIP), which will help implement secure and inclusive digital payment systems.
This policy aligns with the EAC’s broader goal of establishing a single currency by 2031. Its adoption represents a significant step toward economic integration and digital transformation, promising substantial benefits for businesses, governments, and citizens across the region.
The rollout is expected to begin in phases later in 2025.
