Residents of Kenya, Rwanda, Uganda, Burundi
and Tanzania will soon be able to travel with, and use own national
currencies in other countries within East Africa as well as making
digital cross-border cash transactions in real time.
The new development comes through the recently launched East African
Community Project on Payment and Settlement Systems Integration aimed at
introducing seamless pay system which will gradually bridge member
states' transaction gaps towards the proposed East African Monetary
Union.
PSSIP connects the five Central Banks in Kenya, Rwanda, Uganda,
Tanzania and Burundi through special technological networking based on
the digital fibre-optic backbone to allow seamless and real time
transactions.
"This system enhances cross-border payments systems across the EAC
region and enables the public to pay as well as receive payments on real
time basis and in local currencies," stated Prof Njuguna Ndung'u the
Governor of the Central Bank of Kenya during the EAC-PSSIP launch at the
EAC headquarters in Arusha recently.
Prof Njuguna explained that the project which is being executed under
the first phase of the EAC Financial Sector Development follows a
successful initiation of the East African Payment System (EAPS) last
November with the latter already bearing fruits as can be seen in the
recent successful mobile cash transfers across the region.
On her part the Deputy Governor in charge of Economic and Financial
Policies with the Central Bank of Tanzania (BOT), Dr Natu El-Maamry
Mwamba, pointed out that the EAC Payment and Settlement Systems
Integration will add value to the local monies used by the five Member
States and ease the burden of regularly converting currencies whenever
one move from one country to another.
"Specifically the project is expected to put in place
well-functioning and intergrated Real Time Gross Settlement (RTGS)
Systems in the region and will also support the development of Central
Securities Depositories and Core Banking Platforms in the EAC partner
states," stated Mr Jacob Mukete a representative from the African
Development Bank.
The AfDB is assisting the East African Community in the launching of
the Regional Payment and Settlement System said to be the best way of
initiating convergence of the markets in the bloc.
The EAC Deputy Secretary General in charge of Planning and
Infrastructure, Dr Enos Bukuku said the PSSIP will bring about
solidarity in integration, financial cohesion and inclusive growth plus
making the bloc more enticing for foreign as well as local investments.
Experts here also say that the move is another positive development in the tourism sector.
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