Tanzanian banks surge 78pc in SADC cross-border payments

The six Tanzanian banks participating in the SADC-RTGS platform include Absa Bank Tanzania Limited, Ecobank Tanzania Limited, Equity Bank Tanzania, National Bank of Commerce Limited, Stanbic Bank Tanzania Limited, and Standard Chartered Bank Tanzania Limited.

Overall, the SADC-RTGS system recorded TZS-ZAR 223.15 billion in transactions in April 2025, marking a 12.7 percent increase from TZS-ZAR 198.06 billion the previous year. BoT Governor Emmanuel Tutuba said that the increasing role of Tanzanian banks in regional settlements reflects strong macroeconomic fundamentals and an expanding digital infrastructure.

“The Tanzanian economy is performing well, supported by national peace and political stability,” he said.

In an interview with The Citizen, the Governor highlighted, “This macroeconomic stability has laid the foundation for robust performance in the financial sector, especially in digital payments.” He added: “We have made significant progress in facilitating digital transactions. The growth in cross-border transactions and domestic digital payments is largely driven by convenience. Efficient systems are creating reliability and comfort for users.”

The increased participation of Tanzanian banks reflects the growing importance of harmonized financial platforms in boosting intra-African trade. The SADC-RTGS system offers real-time settlements in local currencies, reducing the costs and delays associated with traditional cross-border payment mechanisms.

Mr Tutuba cited regional cooperation on currency usage as a practical example of integration: “In East Africa, we agreed to use local currencies. When the money reaches the destination, it is exchanged for the recipient country’s currency. For example, when Ugandan traders come to Tanzania, we consolidate the funds and send them onward efficiently.”

Additionally, the BoT’s emphasis on enhancing digital payment efficiency translates into competitive advantages for these banks in the cross-border arena. He asserted that “the growth in cross-border transactions and domestic digital payments is largely driven by cost-effectiveness and convenience. Efficient systems are creating reliability and comfort for users.”

These attributes—cost-effectiveness, convenience, and reliability—enable Tanzanian banks to attract and effectively process a growing share of regional transactions.  Beyond the Southern African corridor, Tanzanian banks remain active across East African payment systems, adapting to dynamic trade patterns.

Cross-border transactions through the East African Payment System (EAPS) in Tanzanian Shillings declined to Sh33.7 billion in April 2025 from Sh44.5 billion in April 2024. However, there was a notable increase in transactions denominated in Kenyan Shillings, which rose to Ksh 3.52 billion from Ksh 0.74 billion, while transactions in Ugandan Shillings fell to UGSh 1.67 billion from UGSh 5.79 billion.

While Tanzanian Shilling-denominated transactions through EAPS saw a decline, the Governor  clarified the regional agreement to use local currencies, with exchanges occurring at the destination. He explained: “Trade volumes vary depending on the nature of each country’s economy—Kenya exports more industrial products, while Tanzania mainly exports food items.”

As Africa deepens its commitment to the African Continental Free Trade Area (AfCFTA), platforms like SADC-RTGS are becoming essential to unlocking trade potential, particularly for SMEs and cross-border service providers.  Tanzania’s focus on digitisation and cross-border financial infrastructure is positioning the country as an emerging financial link between East and Southern Africa. Current trends suggest that, with continued regulatory support and technological investment, Tanzanian banks will play an increasingly significant role in facilitating continental trade in the future.