Trading within the East African Community will be simplified following the introduction of a seamless financial system to ease payments across the region.
The Shs57.2 billion ($23 million) system dubbed EAC Payment and Settlement Systems Integration Project (E-PSSIP) is the brainchild of the secretariat in partnership with the African Development Bank (AfDB).
EAC-PSSIP, which was launched on Monday in Arusha-Tanzania by all the Central Bank Governors of the five-member states, is geared at enhancing convergence and regional integration of payment and settlement systems.The system will also strengthen a harmonised legislative and regulatory financial sector and build capacities in the partner states.
Speaking during the launch on Monday, the EAC deputy Secretary General in charge of planning and infrastructure, Dr. Enos Bukuku, said: “Financial sector integration is the anchor that will make the EAC region a viable destination for both foreign and domestic investment. It will bolster the liquidity of the region’s capital markets and create financing avenues for investors and issuers.”
The new development is among the tools meant to develop the financial markets among the EAC partner states. The representative of African Development Bank, Mr. Jacob Mukete, said the system will strengthen the efficiency of cross-border fund transfers, together with regulatory and legislative capacities, to promote financial sector development and integration in the region.
SOURCE: Daily Monitor