Regional Financial Intergration for Eastern African countries being hatched between EAC and IGAD
The East African Community and the Intergovernmental Authority on Development have taken a significant step towards hatching a unified regional financial integration.
At the heart of the discussions which took place in Addis Ababa, Ethiopia, experts shared their experiences and used the occasion to describe regional challenges arising from fragmented and non-interoperable payment systems.
These challenges, according to delegates, have been undermining economic potential.
It was pointed out that, while countries like Kenya, Tanzania, and Ethiopia have made strides in domestic interoperability, regional integration remains stifled by gaps in regulations, technical disparities, and cybersecurity concerns.
“The collaboration between the East African Community (EAC) and IGAD exemplifies the spirit of regional solidarity and shared ambition that Africa needs to build the future it envisions, a future of seamless digital integration, inclusive prosperity, and economic transformation,” said Dr Mohyeldeen Eltohami.
Dr Eltohami who is the Director of Economic Cooperation and Regional Integration at the Intergovernmental Authority on Development (IGAD), added that Digital transformation is no longer a choice but a necessity.
“Together, IGAD and EAC can build a digitally integrated Eastern Africa, where borders no longer limit opportunity, and where innovation drives inclusion, and prosperity is shared,” he added.
On his part, the Senior Financial Sector Specialist, Payment Systems Development Group at the World Bank, Gynedi Srinivas, applauded the region’s readiness to harness the benefits of fast payment system (FPS) interoperability.
“The benefits of cross-border interoperability of fast payment systems will especially enable safer, faster and low-cost retail payments across borders, helping end-users, individuals and Medium, Small and Micro Enterprises (MSMEs) to make and receive payments seamlessly,” he noted.
Echoing these sentiments, Engineer Daniel Murenzi, the Principal Information Technology Officer at the EAC Secretariat, in Arusha, stressed that digital payments are the backbone of a functioning digital market and that interoperability was no longer a luxury but a necessity for regional prosperity.
The Eastern Africa Regional Digital Integration Project (EARDIP) is a flagship initiative jointly implemented by IGAD and EAC, with support from the World Bank, which has a mission to boost regional digital market integration by expanding broadband infrastructure and strengthening the environment for cross-border digital services, including digital payments, a critical enabler of trade, remittances, and financial inclusion.