In an effort to improve financial integration across Eastern Africa, the East African Community (EAC) and the Intergovernmental Authority on Development (IGAD) have joined forces to tackle barriers in cross-border digital payments. The two organizations hosted a collaborative workshop in Addis Ababa, Ethiopia, from June 30 to July 4, 2025, with key stakeholders, including central banks, digital finance experts, and senior policymakers from nine countries.
Addressing Fragmentation in Payment Systems
The workshop centered around the region’s ongoing challenge of fragmented payment systems, which hinder economic growth and cross-border transactions. While countries like Kenya, Tanzania, and Ethiopia have made progress in domestic payment interoperability, regional integration remains slow due to technical disparities, regulatory gaps, and cybersecurity concerns.
Dr. Mohyeldeen Eltohami, Director of Economic Cooperation and Regional Integration at IGAD, highlighted that the collaboration between EAC and IGAD represents a crucial step toward a future of seamless digital integration. The workshop served as a platform for technical learning, peer-to-peer exchanges, and shared visioning, laying the groundwork for a harmonized regional framework.
Boosting Regional Digital Integration
The Eastern Africa Regional Digital Integration Project (EARDIP), a key initiative implemented by EAC and IGAD with support from the World Bank, aims to boost regional digital market integration. One of its main objectives is to improve cross-border payment systems, crucial for trade, remittances, and financial inclusion. Through this project, the region seeks to expand broadband infrastructure and create a more robust environment for digital services.
The Role of Digital Payment Systems in Economic Growth
Digital payments are a vital enabler of economic growth and inclusion, and interoperability is at the heart of this process. According to Eng. Daniel Murenzi, Principal Information Technology Officer at the EAC Secretariat, the seamless functioning of payment systems is crucial for regional prosperity. Interoperability will improve financial inclusion, empower businesses, and promote cross-border collaboration across EAC and IGAD Member States.
Emerging Technologies and Cybersecurity Challenges
The workshop also examined emerging technologies such as blockchain, AI, and cross-border Central Bank Digital Currencies (CBDCs). Experts emphasized the importance of addressing cybersecurity risks and the role of cybersecurity incident response teams (CIRSTs) in protecting payment ecosystems. The need for a unified cybersecurity framework was identified as a top priority to safeguard the integrity of digital financial systems.
The Path Forward for Cross-Border Payments
In addition to reviewing technical infrastructure, the workshop focused on legal and regulatory frameworks to facilitate digital payments. Recommendations included investing in shared infrastructure, developing regulatory sandboxes to support innovation, and harmonizing legal instruments for cross-border operability.
The collaboration between EAC, IGAD, and the World Bank marks a significant step toward a digitally integrated Eastern Africa, where borders no longer limit opportunities, and innovation drives inclusive prosperity. The results of this initiative will not only enhance economic stability but also encourage greater collaboration and shared growth across the region.
As Eastern Africa continues to embrace digital transformation, the partnership between EAC and IGAD is paving the way for a future where cross-border digital payments are faster, safer, and more inclusive. This collaboration is vital to accelerating the region’s economic development, fostering regional integration, and ensuring that no country is left behind in the digital age.