Eastern Africa Visions Cross-border Digital Payments Consensus Between EAC and IGAD
The recent five-day workshop held in Addis Ababa, Ethiopia, from June 30th to July 4th, 2025, marked a significant milestone in the journey towards regional financial integration in Eastern Africa. Organised under the Eastern Africa Regional Digital Integration Project (EARDIP), a joint initiative by the Intergovernmental Authority on Development (IGAD) and the East African Community (EAC), with support from the World Bank, the event brought together central banks, digital finance experts, and senior policymakers from nine countries [1][2].
The primary focus of the workshop was to advance harmonized legal, regulatory, and supervisory frameworks for cross-border payments, addressing the shared regional challenge of fragmented and non-interoperable payment systems that undermine economic potential [2]. Dr. Mohyeldeen Eltohami, Director of Economic Cooperation and Regional Integration at IGAD, emphasized that digital transformation is a necessity for regional prosperity, and interoperability is no longer a luxury but a requirement for a digitally integrated Eastern Africa [2].
Progress was made in several key areas. The workshop highlighted the need for harmonization, addressing the fragmentation of payment systems, and serving as a platform for technical learning, peer exchange, and strategic planning aimed at overcoming barriers impeding regional digital financial services [1][2].
EARDIP aims to boost regional digital market integration by expanding broadband infrastructure and strengthening the digital ecosystem, including payment systems crucial to trade, remittances, and financial inclusion [1][2]. The workshop's objectives align with the G20 roadmap for faster, cheaper, and safer cross-border payments, as noted by Mr. Gynedi Srinivas, Senior Financial Sector Specialist at the World Bank [2].
Key recommendations from the sessions included investing in shared digital infrastructure, adopting consumer-centric design for fast payment systems, developing regulatory sandboxes, and harmonizing legal instruments [2]. The need for a unified cybersecurity legal framework and real-time threat intelligence sharing across borders emerged as a top priority [2].
The workshop also explored emerging technologies, including AI, blockchain, and cross-border Central bank digital currencies [2]. Eng. Daniel Murenzi, Principal Information Technology Officer at the EAC Secretariat, emphasized that the EARDIP Project aims to strengthen cross-border digital infrastructure, services, policies, and frameworks [2].
The workshop concluded with a call to action, recommending facilitating peer-to-peer attachments among central banks, anchoring FPS design in user needs, addressing social engineering risks in mobile payments, and convening annual joint workshops on cross-border payments [1][2][5]. These recommendations are critical to unlocking the economic potential of the region by facilitating trade, remittances, and greater financial inclusion through interoperable and secure payment systems [1][2][5].
In summary, the IGAD-EAC-World Bank Joint Workshop successfully advanced a collective vision for regional interoperability while identifying urgent reforms needed to achieve seamless and secure cross-border digital payments across Eastern Africa. The next steps will involve implementing the recommendations and maintaining collaboration among central banks, regulators, and digital finance stakeholders to maintain momentum towards regional integration.
- The workshop, held under the Eastern Africa Regional Digital Integration Project (EARDIP), underscored the importance of investing in shared digital infrastructure, as this is crucial for regional digital market integration.
- Addressing the fragmentation of payment systems is necessary for overcoming barriers impeding regional digital financial services, a point highlighted during the workshop.
- In line with the G20 roadmap, the workshop's objectives include advancing harmonized legal, regulatory, and supervisory frameworks for cross-border payments, with a focus on making these transactions faster, cheaper, and safer.
- As technology continues to evolve in the banking sector, the need for a unified cybersecurity legal framework and real-time threat intelligence sharing across borders has emerged as a top priority to ensure the security of these digital systems.
