Focus on speeding up cross-border payments

East Africa is one of the drivers of speeding up over-border electronic payments, according to Swift data analysed by a team headed by Alisa DiCaprio. A breakdown of end-to-end payment speeds across sub- Saharan Africa’s sub-regions between 2021 and 2024 found that 38% of transactions in East Africa were accredited within an hour, compared to the southern African average of 28%. “This divergence highlights disparities in last-mile efficiency across the continent. “The quality of the cross-border payments experience is critical for sustained economic expansion.” “Trade is greater when payments are trusted and reliable; investment is higher if capital can be transferred safely, and a secure and resilient payments infrastructure reduces risks like fraud and volatility,” she writes. “Countries in eastern and southern Africa are emerging as regional anchors of economic growth, attracting cross-border commerce and payments. “Supply chain shifts, combined with AfCFTA-driven integration, appear to be fostering growth in intra-African trade, particularly in manufactured goods, food and energy within Africa,” the team adds. There are concerted efforts to improve cross-border payments within the region. In March 2025, the East African Community Cross-border Payment System Masterplan was published. The foreword reads: “The East African Monetary Union (EAMU) Protocol, adopted in 2013, laid the groundwork for deeper financial and economic integration among EAC partner states. “Achieving this vision requires more than policy coordination – it demands integrated payment systems and a harmonised regulatory environment that fosters efficiency, interoperability, and innovation. “It is on this basis that the EAC Monetary Affairs Committee (MAC) developed this five-year comprehensive Payment System Masterplan to provide a structured and forward-looking approach to the harmonisation, modernisation and integration of regional payment systems.” The master plan outlines 20 strategic initiatives to enhance digital payments, streamline regulatory frameworks, and promote collaboration between public and private sector stakeholders. “The goal is to create a payment ecosystem that not only supports regional financial stability, but also empowers small businesses and consumers by improving accessibility and reducing transaction costs,” according to the foreword. Challenges identified in the master plan include: fragmented regulatory frameworks and licensing regimes across partner states; limited interoperability between existing national and regional payment systems; high transaction costs and slow settlement processes; gaps in financial inclusion and consumer protection mechanisms; and limited cross- border data-sharing and risk management capabilities. The master plan roadmap is divided into three. Over the short term – one to two years – the objective is regulatory harmonisation, technical upgrades to the East Africa Payment System, and capacity building. For the next three to five years, the focus will be on establishing full interoperability between partner state payment systems and operationalisation of an instant retail payment switch. After five years, the emphasis will be on sustained regional coordination and integration with global payment networks. ER