EAC Central Banks urged to adopt tech for faster, cheaper cross-border payments

Nduva highlighted issues such as limited capacity, lack of interoperability, and communication gaps between central banks and stakeholders as factors behind the low uptake of the East African Payments System (EAPS).

Launched in 2014, EAPS was designed to ensure efficient and secure payments across the region, but progress has been slow. Nduva stressed that central banks play a vital role in building public trust in tech-driven payment systems, crucial for trade and investment growth within the region.

Nduva noted that cross-border payments remain slow, expensive, and reliant on foreign correspondent banks. Pulse Live Uganda

Speaking at a two-day forum in Arusha, Tanzania, Nduva emphasised the need for faster, safer, and cheaper cross-border payments to boost intra-regional trade and financial inclusion. She also called for the harmonisation of policies, infrastructure improvements, and capacity-building for stakeholders involved in regional payment systems.

Nduva stressed that central banks play a vital role in building public trust in tech-driven payment systems Pulse Live Uganda

The Bill and Melinda Gates Foundation and TradeMark Africa also backed the move, with both organisations pointing out the importance of cross-border payments for financial inclusion and trade growth in East Africa. The African Development Bank’s Dr. Joy Maria Kategekwa praised the Pan-African Payment System (PAPSS) for its impact in easing cross-border transactions across the continent.

Despite progress in digital financial services at the domestic level, Nduva noted that cross-border payments remain slow, expensive, and reliant on foreign correspondent banks. She urged Partner States to build on domestic successes to achieve regional interoperability and boost trade in the EAC.