EAC moves closer to integrated digital payments system

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Governors of central banks sitting in Mombasa, Kenya, have considered and adopted the cross-border payment system masterplan.

The payments masterplan aims to enhance digital integration and facilitate seamless cross-border transactions within the region, improving the speed, security, and affordability of digital payments.

The adoption of the masterplan constitutes an important milestone towards more efficient, cheaper, transparent, and inclusive cross-border payment systems in the region.

During the 28th Ordinary Meeting of the EAC Monetary Affairs Committee held on May 9, 2025, the governors also welcomed their counterparts from the central banks of Somalia and the Democratic Republic of Congo to the Monetary Affairs Committee (MAC) of the East African Community, following their countries' admission to the bloc.

At the sitting, the governors pledged to provide all necessary support to the two central banks as they integrate into the EAC.

“They also took the opportunity to congratulate the Governor of the Bank of South Sudan for his reappointment; and the Governors of the National Bank of Rwanda and the Bank of Uganda, for the promotions to their duties and wished them success in their new roles,” noted a press release by the Corporate Communication and Public Affairs Office of the EAC dated May 9, 2025.

Uganda represented

According to the communication, Uganda was represented by Dr Adam Mugume, the director of research and economic analysis, who stood in for central bank governor Michael Atingi-Ego.

The meeting was chaired by Dr Thugge Kamau, governor of the Central Bank of Kenya and current chairman of MAC.

The meeting took place against a backdrop of elevated uncertainties in the global economic outlook, arising from heightened trade tensions and persistent geopolitical concerns.

Additionally, global inflation is expected to decline at a slower pace due to the impact of higher trade tariffs and the adverse effects of climate change.

“The Committee observed that economic performance in the EAC region has remained relatively resilient, despite the global shocks,” said the communication.

GDP growth

In 2024, GDP growth varied among partner states, with some recording robust growth that signalled sustained economic momentum, largely supported by the good performance of the agriculture sector and the resilience of the services, mining, and oil sectors.

Nevertheless, a few economies slowed down, partly due to global and domestic shocks.

“The Committee also noted the strong growth outlook for the EAC economies, with real GDP projected at 5.8 percent in 2025, which is higher than the projected growth globally and in Sub-Saharan Africa. The growth outlook will be supported by expected continued strong performance of agriculture and services sectors. In addition, supportive government policies and macroeconomic stability are expected to provide impetus to growth,” the communication noted.

Positive growth outlook

Despite this positive growth outlook, the Committee noted that there are downside risks, mainly related to global trade tensions and geopolitical concerns. Additionally, climate-related risks remain elevated.

The Committee further noted that the average inflation in the region declined to 9.0 percent in 2024 from 11.2 percent in 2023, reflecting the impact of monetary policy measures, improved food supply owing to favourable weather conditions in most partner states, and easing global commodity prices.

The governors observed that inflation is expected to continue moderating across most Partner States in 2025. “However, there are risks, particularly arising from climate and global shocks,” the communication said.

Monetary union

The meeting reviewed progress made in the implementation of the revised roadmap towards the realisation of the East Africa Monetary Union (EAMU) by 2031.

They noted that significant progress has been made in the harmonisation of monetary and exchange rate policies, harmonising principles and rules for the regulation and supervision of the region's financial system.

Other milestones include the harmonisation of information technology infrastructure and enhancing risk and crisis management frameworks to ensure the stability of the region’s financial systems. They also noted the adoption of climate-risk awareness, promotion of the use of the regional cross-border payments system (EAPS), and harmonisation of payment systems governance, legal, regulatory frameworks, and standards.

The Governors also noted that Partner States have made notable progress in the implementation of the EAC Macroeconomic Convergence Criteria. The Governors pledged to continue working with the relevant authorities to expedite the implementation of the revised EAMU roadmap.