In a major step toward deeper economic integration, central bank governors from East African Community (EAC) member states have endorsed a new Cross-Border Payment System Masterplan aimed at transforming the region’s financial landscape. 

The agreement was reached during the 28th Joint Meeting on Monetary Affairs held in Mombasa, with representatives from Somalia and the Democratic Republic of Congo participating for the first time since joining the bloc.

The Masterplan outlines a strategic framework to streamline cross-border transactions, cut costs, and modernise payment infrastructure across the region. It is built around four key pillars: governance, infrastructure, inclusivity, and capacity building, and will be rolled out in three phases.

In the short term (1–2 years), the focus will be on regulatory harmonisation, foundational infrastructure upgrades, and targeted capacity-building programs. The medium-term phase (3–5 years) aims to establish full interoperability across member states’ payment systems and launch a regional instant retail payment switch. Over the long term (beyond 5 years), the plan envisions greater integration with global financial systems and the adoption of emerging digital technologies.

“The governors considered and adopted the Masterplan, which outlines strategic initiatives for the modernisation and integration of payment systems in the EAC region,” stated an official communiqué released after the meeting.

To further bolster financial resilience, the governors signed a new Memorandum of Understanding that enhances cross-border cooperation through data sharing and coordinated approaches to financial crisis preparedness, management, and recovery.

Despite recent global economic challenges, the EAC has shown strong resilience. In 2024, many member states recorded solid GDP growth, driven by robust performance in agriculture, services, mining, and oil. Looking ahead, the region’s economic outlook remains optimistic, with real GDP expected to grow by 5.8% in 2025, surpassing both global and Sub-Saharan Africa’s projected averages.

However, the committee warned of persistent risks such as geopolitical instability, climate shocks, and global trade tensions that could impact progress.

The adoption of the payment system reform marks a turning point in the region’s journey toward a more unified and efficient financial ecosystem, laying the groundwork for increased trade, economic resilience, and inclusive growth across East Africa.