EAC Cross-Border Payment System To Cut Costly Delays

2119 Views Kampala, Uganda

In short
Payments across borders in East Africa have been made easier with the launch of The East African Cross Border Payment System (EAPS), which makes it seamless to transfer funds in the region.

Payments across borders in East Africa have been made easier with the launch of The East African Cross Border Payment System (EAPS), which makes it seamless to transfer funds in the region.
 
Joan Okello, the Director Payments and Settlements at Bank of Uganda, says EAPS went live on November 25th and that it would make it more efficient to transact business reducing settlement days from two or more to just one day.
 
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Okello explains that if a Ugandan businessman wants to pay a supplier in Kenya, it is a matter of them walking into a commercial bank, converting the Uganda Shillings to a Kenya Shillings and then effecting the transfer through EAPS.
 
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Dr Louis Kasekende, the Deputy Governor Bank of Uganda, explains some of the benefits of the system as one that would promote regional trade and integration in East Africa. Kasekende adds that with the signing of the Monetary Union Protocol by the five Presidents last weekend, there would be several financial integration initiatives by the various central banks. The EAPS is an initiative of the Central Banks in East Africa.
 
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The EAPS is linked to the Real Time Gross Settlement systems (RTGSs) in the various member states in the region. At the moment, only Kenya, Tanzania and Uganda have fully integrated this payment system, with Rwanda and Burundi to be part of it “at a later date when ready.” The three East African countries that are part of EAPS at the moment had implemented the RTGS at national level, whereas Burundi and Rwanda have only just adopted it in their economies.

 

Mentioned: bank of uganda