Uganda’s Minister of State for East African Community Affairs, Mr James Ikuya, described the initiative as a breakthrough during the launch event in the country.
Dar es Salaam. The East African Community (EAC) is increasingly turning to technology to overcome some of the persistent barriers that have long held back regional integration.
From customs procedures to cross-border payments, new digital solutions are now being rolled out to reduce costs, improve transparency, and accelerate trade across Partner States.
Earlier this month, the bloc launched the EACBond, a regional customs guarantee instrument that replaces the need for multiple national bonds when transporting goods.
The move is expected to ease border delays, cut costs, and release traders’ capital back into productive use.
Uganda’s Minister of State for East African Community Affairs, Mr James Ikuya, described the initiative as a breakthrough during the launch event in the country.
“The EACBond is a game changer for our traders. By eliminating multiple bond requirements, we are cutting unnecessary costs and speeding up trade across our borders. This will empower our business community and boost exports,” he said.
The bond, currently in a pilot phase in Uganda, Kenya, and Rwanda, will be extended to all Partner States.
It links directly to automated cargo-tracking systems, reducing risks of fraud and ensuring customs compliance.
According to the EAC Secretariat, the system could free up nearly $2 billion in previously tied-up capital across the region.
EAC Secretary General Veronica Nduva stressed that the reform goes beyond lowering costs.
“The bond frees up traders’ money that was tied up in deposits, allowing businesses to reinvest in expansion and jobs. It also improves trade transparency through real-time tracking,” she noted.
Digital payments on the horizon
Alongside customs reforms, the EAC is pushing forward with its Cross-Border Payment System Masterplan.
The strategy, validated earlier this year, seeks to modernise financial systems, harmonise regulations, and enable seamless transactions between Partner States.
The plan identifies persistent challenges such as fragmented regulations, high transaction costs, and limited interoperability between national systems.
It outlines 20 targeted initiatives, including the creation of a mutual recognition framework for licensing payment service providers, a harmonised mobile money regulatory framework, and a regional instant payment switch.
The EAC is also exploring emerging technologies such as artificial intelligence and central bank digital currencies to strengthen cross-border settlements.
According to the Director of ICT Systems Development in Tanzania’s Ministry of Communication and Information Technology, Mr Mohamed Mashaka, interoperability is central to the region’s efforts.
“As EAC, we are working on a common platform for digital payments and cross-border data sharing. Tanzania is ahead because, through the Bank of Tanzania, we already have Treasury Inflation-Protected Securities (TIPS), a platform that can integrate with other countries. Our role now is to help other Partner States build readiness,” he told The Citizen on Friday, August 29, 2025.
Tanzania at the forefront
Tanzania has emerged as a leader in building the foundations for a digital economy in the region.
The government has already established a Data Protection Commission, rolled out the Digital Economy Strategy, and is finalising an ICT Act.
Come January 2026, the country will unveil its Data Governance Framework, designed to guide responsible data sharing and strengthen trust in digital services.
Analysts say these steps put Tanzania in a strong position to influence regional integration efforts.
A digital economy researcher at the University of Dar es Salaam, Ms Asha Nyangi, says Tanzania’s approach provides lessons for its neighbours.
“Regional integration requires trust in how data is managed. By setting up a strong governance framework, Tanzania is sending a signal that it takes privacy, security, and transparency seriously. This is key for cross-border systems like payments and customs,” she explained.
The Bank of Tanzania has also been instrumental in championing financial technology reforms.
Its interoperability platform, TIPS, already allows instant payments between banks and mobile money operators.
With the right alignments, experts believe it could integrate seamlessly into the EAC-wide framework.
The EAC has been steadily deploying other digital tools to improve trade and revenue collection.
These include the Regional Electronic Cargo Tracking System (RECTS), which has cut transit times by up to 40 percent, saving Partner States more than $250 million in potential losses.
For private sector players, these reforms could mark a turning point. The Kenya-based trade consultant, Mr Patrick Lyimo, says technology is addressing issues that politics alone could not solve.
“For years, we talked about eliminating non-tariff barriers, but progress was slow. Now, technology is helping us bypass old obstacles. If the systems are well implemented, businesses in East Africa will have fewer costs, faster deliveries, and bigger markets,” he said.
Still, experts warn that successful implementation will require harmonisation of laws, adequate infrastructure, and political goodwill.
