EAC Unveils Regional Payment System Master Plan to Boost Financial Integration
By Ginaba Lino
Key Step Toward Financial Integration in East Africa
The East African Community (EAC) has taken a major leap toward regional financial integration with the approval of a comprehensive Cross-Border Payment System Master Plan. This strategic initiative was endorsed during the 28th Ordinary Meeting of the EAC Monetary Affairs Committee (MAC), which convened central bank governors and financial leaders from across member states.
Transforming the Regional Payment Landscape
Chaired by Veronica Mueni Nduva, the meeting marked a pivotal moment in the EAC’s journey toward a secure, efficient, and inclusive cross-border payments ecosystem. The Master Plan is designed to:
- Enhance transaction efficiency and security
- Promote local currency usage
- Deepen financial markets
- Boost digital inclusion
- Support broader economic development
Four Pillars of the Master Plan
The strategic framework rests on four foundational elements:
1. Regulatory Harmonization
Establishing uniform regulations across partner states to reduce risks and improve interoperability among payment service providers.
2. Infrastructure Development
Upgrading the East African Payment System (EAPS) and creating a regional instant retail payment switching mechanism for faster transactions.
3. Equitable Access
Ensuring fair access to cross-border financial services for all individuals, businesses, and institutions across the EAC.
4. Capacity Building
Strengthening technical expertise, regulatory capabilities, and financial literacy to sustain modern payment systems.
Expected Benefits and Next Steps
Veronica Nduva emphasized that the Master Plan will significantly reduce transaction costs and processing times, making cross-border financial exchanges more accessible. The initiative also includes:
- Enhanced cybersecurity measures
- Improved data protection
- Technical assistance programs
While the implementation timeline remains undisclosed, this approval represents a crucial milestone in the EAC’s path toward deeper economic integration.
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